January 27, 2005 - EXHIBIT 99.2 - 8-K: Current report filing

Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
January 26, 2005

AVALONBAY COMMUNITIES INC. ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2004 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, 2004 was $111,894,000, resulting in Earnings per Share - diluted (EPS) of $1.52, compared to $1.36 for the comparable period of 2003, a per share increase of 11.8%. For the year ended December 31, 2004, EPS was $2.92 compared to $3.73 for the comparable period of 2003, a per share decrease of 21.7%. These variances are primarily attributable to the timing and volume of disposition activity in 2004 and 2003.

Funds from Operations attributable to common stockholders - diluted (FFO) for the quarter ended December 31, 2004 was $64,818,000, or $0.88 per share compared to $59,697,000, or $0.83 per share for the comparable period of 2003, a per share increase of 6.0%. FFO per share for the year ended December 31, 2004 increased by 2.4% to $3.36 from $3.28 for the comparable period in 2003. FFO for both the fourth quarter and the full year 2004 include approximately $1,240,000, or approximately $0.02 per share, for the receipt of a non-routine prepayment premium on a note payable to the Company, net of legal costs.

Operating Results for the Quarter Ended December 31, 2004 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $12,873,000, or 8.2% to $170,403,000. For Established Communities, rental revenue increased 1.6%, due to an increase in Economic Occupancy of 2.0%, partially offset by a decline in rental rates of 0.4% between periods. Total revenue for Established Communities increased $1,655,000 to $110,838,000, and operating expenses increased $1,259,000, or 3.7%, to $35,541,000. Accordingly, Net Operating Income (NOI) for Established Communities increased by $396,000 or 0.5%, to $75,297,000.

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




4Q 04 Compared to 4Q 03

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI*

Northeast		2.4	%		(0.8	%)		3.9	%		41.4	%
Mid-Atlantic		1.9	%		1.9	%		1.9	%		17.6	%
Midwest		2.6	%		3.9	%		1.6	%		2.2	%
Pacific NW		2.8	%		4.9	%		1.7	%		4.5	%
No. California		(0.4	%)		9.8	%		(4.6	%)		23.0	%
So. California		3.0	%		3.1	%		2.8	%		11.3	%

Total		1.6	%		3.7	%		0.5	%		100.0	%


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

Sequential Operating Results for the Quarter Ended December 31, 2004 Compared to the Quarter Ended September 30, 2004

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 2004:




4Q 04 Compared to 3Q 04

	Rental			Operating
	Revenue			Expenses			NOI

Northeast		0.1	%		(6.4	%)		3.5	%
Mid-Atlantic		(0.9	%)		(5.5	%)		1.1	%
Midwest		(2.9	%)		1.0	%		(5.7	%)
Pacific NW		(0.1	%)		0.9	%		(0.8	%)
No. California		0.7	%		1.4	%		0.4	%
So. California		1.1	%		(5.2	%)		3.8	%

Total		0.2	%		(3.0	%)		1.8	%

Consistent with expected trends, operating expenses declined from the third quarter to the fourth quarter of 2004 due to lower seasonal turnover costs.

Operating Results for the Year Ended December 31, 2004 Compared to the Prior Year

For the Company, including discontinued operations, total revenue increased by $28,368,000, or 4.5% to $661,862,000. For Established Communities, rental revenue decreased 0.3%, comprised of a rental rate decline of 1.8%, partially offset by an increase in Economic Occupancy of 1.5%. Total revenue for Established Communities decreased $1,499,000 to $440,145,000 and operating expenses increased $2,464,000, or 1.8%, to $141,823,000. Accordingly, NOI for Established Communities decreased by $3,963,000 or 1.3%, to $298,322,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the year ended December 31, 2004 compared to the year ended December 31, 2003:




Full Year 2004 Compared to Full Year 2003

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI*

Northeast		0.0	%		0.7	%		(0.4	%)		40.3	%
Mid-Atlantic		2.4	%		2.0	%		2.6	%		17.4	%
Midwest		2.2	%		(3.3	%)		6.8	%		2.2	%
Pacific NW		1.4	%		0.7	%		1.8	%		4.7	%
No. California		(3.1	%)		3.8	%		(5.9	%)		24.2	%
So. California		1.9	%		2.0	%		1.8	%		11.2	%

Total		(0.3	%)		1.8	%		(1.3	%)		100.0	%


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

Established Communities Operating Statistics

Market Rents, as determined by the Company, averaged $1,477 per home for the Established Community portfolio as a whole in the fourth quarter of 2004, increasing 1.5% as compared to average Market Rents for the fourth quarter of 2003 and increasing 0.4% over average Market Rents for the third quarter of 2004.

Economic Occupancy was 95.8% during the fourth quarter of 2004, increasing 2.0% as compared to the fourth quarter of 2003 and decreasing 0.3% as compared to the third quarter of 2004, consistent with seasonal trends.

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 2004, rental revenue with concessions on a cash basis increased 2.8% as compared to the fourth quarter of 2003 (versus an increase of 1.6% on a GAAP basis) and increased 1.8% as compared to the third quarter of 2004 (versus an increase of 0.2% on a GAAP basis).

Concessions granted per move-in for Established Communities averaged $861 during the fourth quarter of 2004, a decrease of 14.2% from $1,004 in the fourth quarter of 2003 and a decrease of 5.6% from $912 in the third quarter of 2004.

Acquisition Activity

During the fourth quarter of 2004, the Company acquired two communities, Hobbits Grove, located in the Baltimore, MD area, and Ravenswood at the Park, located in the Seattle, WA area. Hobbits Grove is a garden-style community containing 170 apartment homes and was acquired for an acquisition price of $23,650,000. Ravenswood at the Park is a garden-style community containing 400 apartment homes and was acquired for an acquisition price of $49,000,000.

In the aggregate, the Company acquired five communities during 2004. These five communities contain an aggregate of 1,165 apartment homes and were acquired for a total acquisition price of $134,216,000, which includes the assumption of $8,155,000 of fixed rate mortgage debt. Four of these communities were acquired with the intent of being owned through a discretionary investment fund, for which the Company expects the initial closing to occur during the first quarter of 2005.

Development Activity

The Company completed four development communities during the fourth quarter of 2004 for an aggregate Total Capital Cost of approximately $188,700,000. Avalon at Glen Cove South, located in the Long Island, NY area, is a mid-rise community containing 256 apartment homes and was completed for a Total Capital Cost of $67,300,000. Avalon at Traville, located in the Washington, DC metropolitan area, is a garden-style/ townhome community containing 520 apartment homes and was completed for a Total Capital Cost of $70,000,000. Avalon Milford I, located in the Fairfield New Haven, CT area, is a garden-style community containing 246 apartment homes and was completed for a Total Capital Cost of $31,500,000. Avalon at The Pinehills I, located in the Boston, MA area, is a garden-style community containing 101 apartment homes and was completed for a Total Capital Cost of $19,900,000.

During the fourth quarter of 2004, the Company commenced construction of one community, Avalon at Bedford Center, located in the Boston, MA area. This community, when completed, is expected to contain 139 apartment homes for a Total Capital Cost of $24,900,000.

In addition, the Company entered into a joint venture agreement with an unrelated third party for the development of Avalon at Mission Bay North II during the fourth quarter of 2004. The Company holds a 25%

equity interest in this joint venture and expects to commence construction during the first quarter of 2005. The Company expects to complete Avalon at Mission Bay North II for a Total Capital Cost of approximately $117,000,000, of which approximately 80% will be financed through a construction loan. Avalon at Mission Bay North II, when completed, is expected to contain 313 apartment homes.

The Company commenced redevelopment on two communities during the fourth quarter of 2004. Avalon at Fairway Hills III, located in the Washington, DC metropolitan area, was acquired by the Company in 1996, and Briarcliffe Lakeside, located in the Chicago, IL area, was acquired by the Company in 2004. These communities contain a total of 540 apartment homes and, if redeveloped as expected, will be completed for an aggregate Total Capital Cost of $47,800,000 (of which $37,800,000 was incurred prior to redevelopment).

Disposition Activity

During the fourth quarter of 2004, the Company sold two communities, Fairway Glen, located in San Jose, CA, and Avalon at Ballston Vermont and Quincy Towers, located in the greater Washington, DC metropolitan area. These two communities, which contained a total of 598 apartment homes, were sold for an aggregate sales price of $141,450,000. The sale of these communities resulted in a gain as reported in accordance with GAAP of $87,288,000 and an Economic Gain of $81,562,000. The weighted average Initial Year Market Cap Rate related to these communities was 4.3%.

The Company sold five communities during 2004, containing a total of 1,360 apartment homes, and a land parcel, for a gross sales price of approximately $250,977,000. The sale of these five communities and the land parcel in 2004 resulted in a GAAP gain of $122,425,000 and an Economic Gain of $103,105,000. The weighted average Initial Year Market Cap Rate for the five communities sold during 2004 was 4.8% and the weighted average Unleveraged IRR was 16.5%.

Financing, Liquidity and Balance Sheet Statistics

As of December 31, 2004, the Company had $102,000,000 outstanding under its $500,000,000 unsecured credit facility. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 30.7% at December 31, 2004. Unencumbered NOI for the year ended December 31, 2004 was approximately 82% and Interest Coverage for the fourth quarter of 2004 was 2.8 times.

2005 Outlook

As noted in the Companys initial 2005 financial outlook provided on December 21, 2004, the Company expects EPS in the range of $0.65 to $0.69 for the first quarter of 2005 and $1.93 to $2.13 for the full year 2005.

The Company expects Projected FFO per share in the range of $0.91 to $0.95 for the first quarter of 2005 and $3.51 to $3.71 for the full year 2005. The Projected FFO ranges for both the first quarter of 2005 and the full year 2005 include $0.08 to $0.09 related to the potential sale of an investment in a real estate technology company that the Company expects will occur in the first quarter of 2005. Projected FFO per share excluding the $0.08 to $0.09 of expected gain is $0.82 to $0.86 for the first quarter of 2005 and $3.42 to $3.62 for the full year 2005.

First Quarter 2005 Conference Schedule

The Company is scheduled to participate in the Lehman Brothers 8th Annual Future of REITs Panel Discussion on March 3, 2005 from 8:00 AM - 11:30 AM Eastern Time (EST) in New York, NY. Bryce Blair, Chairman, Chief Executive Officer and President, will participate in the panel, which will focus on the economics of development and redevelopment in 2005. Details on how to access a webcast of the event will be available on the Companys website at http://www.avalonbay.com/events beginning March 1, 2005.

The Company is scheduled to participate in the Smith Barney 2005 REIT CEO Conference in Naples, FL on March 7-8, 2005. Management is scheduled to present at this conference on Monday, March 7, 2005 at 3:45 PM EST. Managements presentation will be followed by a question and answer session during which management may discuss the Companys current operating environment; operating trends; current development, disposition and acquisition activity; the Companys outlook and other business and financial matters affecting the Company. The Companys presentation will be accessible via a dial-in phone number which will be available on the Companys website at http://www.avalonbay.com/events beginning March 3, 2005.

Other Matters

The Company will hold a conference call on January 27, 2005 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: 2684060.

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 14, 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)
	Total Capital Cost
	Economic Gain
	Initial Year Market Cap Rate
	Unleveraged IRR
	Leverage
	Total Market Capitalization
	Unencumbered NOI
	Interest Coverage

About AvalonBay Communities, Inc.

As of December 31, 2004, AvalonBay owned or held an ownership interest in 148 apartment communities containing 42,810 apartment homes in ten states and the District of Columbia, of which ten communities were under construction and four communities were 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, which include the following: changes in local employment conditions, demand for apartment homes, supply of competitive housing products, and other economic conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; increases in costs of materials, labor or other expenses may result in communities that we develop or redevelop failing to achieve expected profitability; delays in completing development, redevelopment and/or lease-up may result in increased financing and construction costs, and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of communities may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; we may abandon development or redevelopment opportunities for which we have already incurred costs. Additional discussions of risks and uncertainties appear in the Companys fillings 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 first quarter or the full year 2005. 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.

(AVALONBAY COMMUNITIES INC. LOGO)

FOURTH QUARTER 2004
Supplemental Operating and Financial Data

(BUILDING IMAGE)

Avalon at The Pinehills I, a 101 garden-style apartment home community, is located in Plymouth, Massachusetts, 45 miles
south of Boston and 8 miles north of Cape Cod. Route 3, Route 495 and the new commuter rail, providing
service to Bostons South Station, are all easily accessible from the community.

Avalon at The Pinehills I, overlooking the Rees Jones golf course, is a small community targeted at the growing
empty-nester segment of the population. As part of a 3000-acre master planned community, residents enjoy spacious
living with an abundance of recreational activities, shopping and dining nearby.

Residents can choose from a variety of one-, two- and three-bedroom apartment homes, including loft layouts with
cathedral ceilings and master bedrooms on the first level. Apartment home features include private patios or
balconies, walk-in closets, full size washers and dryers, and garage parking. Most apartments offer fairway views,
and optional amenities include fireplaces and detached garages. Residents also enjoy many community amenities
including daily fee golf, a fully equipped fitness center, outdoor heated swimming pool, clubhouse, picnic areas and
nature trails.

Avalon at The Pinehills I was completed in the fourth quarter of 2004 for a Total Capital Cost of $19.9 million.

FOURTH 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
Full Year Revenue and Occupancy Changes (Established Communities)		Attachment 6

Development, Redevelopment, Acquisition and Disposition Profile
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs		Attachment 7
Summary of Development and Redevelopment Activity		Attachment 8
Development Communities		Attachment 9
Redevelopment Communities		Attachment 10
Summary of Development and Redevelopment Community Activity		Attachment 11
Future Development		Attachment 12
Summary of Disposition Activity		Attachment 13

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 14

The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments are forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Companys development, redevelopment, construction, and lease-up activities, which could impact the forward-looking statements made, are discussed in the paragraph titled Forward-Looking Statements in the release to which these attachments relate. In particular, development opportunities may be abandoned; Total Capital Cost of a community may exceed original estimates, possibly making the community uneconomical and/or affecting projected returns; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs; and other risks described in the Companys filings with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2003.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
December 31, 2004
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q4		Q4					Full Year		Full Year
	2004		2003		% Change			2004		2003		% Change
Net income available to common stockholders	$	111,894	$	98,108		14.1	%	$	211,045	$	260,781		(19.1	%)

Per common share - basic	$	1.55	$	1.39		11.5	%	$	2.95	$	3.80		(22.4	%)
Per common share - diluted	$	1.52	$	1.36		11.8	%	$	2.92	$	3.73		(21.7	%)

Funds from Operations (1)	$	64,818	$	59,697		8.6	%	$	246,247	$	230,566		6.8	%
Per common share - diluted (1)	$	0.88	$	0.83		6.0	%	$	3.36	$	3.28		2.4	%

Dividends declared - common	$	50,807	$	49,656		2.3	%	$	201,638	$	193,590		4.2	%
Per common share	$	0.70	$	0.70				$	2.80	$	2.80

Common shares outstanding		72,582,076		70,937,526		2.3	%		72,582,076		70,937,526		2.3	%
Outstanding operating partnership units		504,071		632,226		(20.3	%)		504,071		632,226		(20.3	%)

Total outstanding shares and units		73,086,147		71,569,752		2.1	%		73,086,147		71,569,752		2.1	%


Average shares outstanding - basic		72,138,440		70,588,495		2.2	%		71,564,202		68,559,657		4.4	%
Average operating partnership units outstanding		534,798		731,553		(26.9	%)		573,529		893,279		(35.8	%)
Effect of dilutive securities		1,377,494		907,287		51.8	%		1,217,225		750,531		62.2	%

Average shares outstanding - diluted		74,050,732		72,227,335		2.5	%		73,354,956		70,203,467		4.5	%

DEBT COMPOSITION AND MATURITIES


			% of Total			Average
			Market			Interest			Remaining
Debt Composition	Amount		Cap			Rate (2)			Maturities (3)

Conventional Debt										2005	$	193,739
Long-term, fixed rate	$	1,925,246		23.8	%					2006	$	158,114
Long-term, variable rate		82,005		1.0	%					2007	$	274,921
Variable rate credit facility										2008	$	221,062
and short term notes		144,402		1.8	%					2009	$	227,897

Subtotal, Conventional		2,151,653		26.6	%		6.3	%


Tax-Exempt Debt
Long-term, fixed rate		198,423		2.5	%
Long-term, variable rate		128,891		1.6	%

Subtotal, Tax-Exempt		327,314		4.1	%		5.2	%


Total Debt	$	2,478,967		30.7	%		6.2	%

(1)	2003 has been revised to include gains on land sales to conform with 2004 presentation.
(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.

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q404		$5,231		$5,193		$104
Q304		$5,257		$4,051		$ 90
Q204		$5,010		$3,792		$114
Q104		$5,068		$3,821		$ 46

COMMUNITY INFORMATION


			Apartment
	Communities		Homes

Current Communities		138		40,142
Development Communities		10		2,668
Development Rights		49		13,491

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
December 31, 2004
(Dollars in thousands except per share data)
(unaudited)


	Q4			Q4						Full Year			Full Year
	2004(1)			2003			% Change			2004 (1)			2003			% Change
Revenue:
Rental and other income	$	168,301		$	151,744			10.9	%	$	647,850		$	591,411			9.5	%
Management, development and other fees		140			188			(25.5	%)		604			931			(35.1	%)

Total		168,441			151,932			10.9	%		648,454			592,342			9.5	%

Operating expenses:
Direct property operating expenses, excluding property taxes		39,906			35,873			11.2	%		156,576			142,322			10.0	%
Property taxes		16,528			14,484			14.1	%		62,665			56,120			11.7	%
Property management and other indirect operating expenses		7,286			7,655			(4.8	%)		27,956			27,123			3.1	%
Investments and investment management (2)		1,207			545			121.5	%		4,691			2,948			59.1	%

Total		64,927			58,557			10.9	%		251,888			228,513			10.2	%


Interest income		96			805			(88.1	%)		194			3,440			(94.4	%)
Interest expense		(33,522	)		(32,769	)		2.3	%		(131,314	)		(133,637	)		(1.7	%)
General and administrative expense		(4,976	)		(3,434	)		44.9	%		(18,074	)		(14,830	)		21.9	%
Joint venture income, minority interest and venture partner interest in profit-sharing (3)		733			(309	)		(337.2	%)		(228	)		22,897			(101.0	%)
Depreciation expense		(40,346	)		(38,181	)		5.7	%		(160,815	)		(147,658	)		8.9	%

Income from continuing operations before cumulative effect of change in accounting principle		25,499			19,487			30.9	%		86,329			94,041			(8.2	%)
Discontinued operations: (4)
Income from discontinued operations		1,282			1,964			(34.7	%)		6,444			16,494			(60.9	%)
Gain on sale of real estate assets (5)		87,288			78,832			10.7	%		122,425			160,990			(24.0	%)

Total discontinued operations		88,570			80,796			9.6	%		128,869			177,484			(27.4	%)


Income before cumulative effect of change in accounting principle		114,069			100,283			13.7	%		215,198			271,525			(20.7	%)
Cumulative effect of change in accounting principle											4,547						100.0	%

Net income		114,069			100,283			13.7	%		219,745			271,525			(19.1	%)
Dividends attributable to preferred stock		(2,175	)		(2,175	)					(8,700	)		(10,744	)		(19.0	%)

Net income available to common stockholders	$	111,894		$	98,108			14.1	%	$	211,045		$	260,781			(19.1	%)

Net income per common share - basic	$	1.55		$	1.39			11.5	%	$	2.95		$	3.80			(22.4	%)

Net income per common share - diluted	$	1.52		$	1.36			11.8	%	$	2.92		$	3.73			(21.7	%)

(1)	Operations for the periods ended December 31, 2004 include the operations of a community in which the Company held a variable interest. This community was 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. On October 15, 2004, the community repaid its note payable to the Company, terminating the variable interest relationship.

(2)	Reflects costs incurred related to investment acquisition, investment management and abandoned pursuits.

(3)	Full year 2003 includes the Companys 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.

(4)	Reflects net income for communities sold during the period from January 1, 2003 through December 31, 2004. The following table details income from discontinued operations as of the periods shown:


	Q4			Q4			Full Year			Full Year
	2004			2003			2004			2003
Rental income	$	1,962		$	5,598		$	13,408		$	41,152
Operating and other expenses		(600	)		(2,081	)		(4,567	)		(15,702	)
Interest expense, net		(80	)		(382	)		(508	)		(2,380	)
Minority interest expense					(12	)		(37	)		(438	)
Depreciation expense					(1,159	)		(1,852	)		(6,138	)

Income from discontinued operations (6)	$	1,282		$	1,964		$	6,444		$	16,494

(5)	Balances include gains on sale of land of $1,138 in the year ended December 31, 2004 and $1,234 in both the quarter and year ended December 31, 2003.

(6)	NOI for discontinued operations totaled $1,362 in the fourth quarter of 2004 and $8,841 for the year ended December 31, 2004, all of which related to assets sold.

Attachment 3

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


	December 31,			December 31,
	2004			2003

Real estate (1)	$	5,615,509		$	5,037,011
Less accumulated depreciation		(830,336	)		(670,392	)

Net operating real estate		4,785,173			4,366,619
Construction in progress (including land)		173,337			253,158
Real estate assets held for sale, net					116,612


Total real estate, net		4,958,510			4,736,389

Cash and cash equivalents		2,163			7,058
Cash in escrow		13,078			11,825
Resident security deposits		24,376			20,891
Other assets (2)		131,990			133,419


Total assets	$	5,130,117		$	4,909,582


Unsecured senior notes	$	1,859,448		$	1,835,284
Unsecured facility		102,000			51,100
Notes payable		516,967			412,698
Liabilities related to assets held for sale					40,073
Other liabilities		244,886			234,341


Total liabilities	$	2,723,301		$	2,573,496


Minority interest		21,525			24,752

Stockholders equity		2,385,291			2,311,334


Total liabilities and stockholders equity	$	5,130,117		$	4,909,582

(1)	Includes land held for development of $166,751 and $81,358 as of December 31, 2004 and 2003, respectively.

(2)	Other assets includes $0 and $1,569 relating to discontinued operations as of December 31, 2004 and 2003, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes - Established Communities (1)
December 31, 2004



	Apartment		Average Rental Rates(2)						Economic Occupancy							Rental Revenue ($000s) (3)
	Homes			Q4 04		Q4 03	% Change			Q4 04		Q4 03		% Change			Q4 04		Q4 03	% Change
Northeast
Fairfield-New Haven, CT		2,170	$	1,526	$	1,566	(2.6	%)		96.6	%	88.2	%	8.4	%	$	9,601	$	9,076	5.8	%
New York, NY		1,646		1,932		2,036	(5.1	%)		96.0	%	91.6	%	4.4	%		9,162		9,224	(0.7	%)
Boston, MA		1,479		1,601		1,608	(0.4	%)		95.9	%	93.8	%	2.1	%		6,810		6,695	1.7	%
Northern New Jersey		1,043		2,185		2,217	(1.4	%)		96.7	%	91.2	%	5.5	%		6,609		6,346	4.1	%
Long Island, NY		806		2,120		2,131	(0.5	%)		96.3	%	94.5	%	1.8	%		4,938		4,873	1.3	%
Central New Jersey		206		1,530		1,613	(5.1	%)		94.6	%	92.6	%	2.0	%		894		923	(3.1	%)

Northeast Average		7,350		1,790		1,834	(2.4	%)		96.3	%	91.5	%	4.8	%		38,014		37,137	2.4	%


Mid-Atlantic
Washington, DC		3,011		1,361		1,334	2.0	%		95.3	%	95.0	%	0.3	%		11,716		11,454	2.3	%
Baltimore, MD		526		1,127		1,129	(0.2	%)		95.3	%	95.6	%	(0.3	%)		1,695		1,703	(0.5	%)

Mid-Atlantic Average		3,537		1,326		1,304	1.7	%		95.3	%	95.1	%	0.2	%		13,411		13,157	1.9	%


Midwest
Chicago, IL		887		1,074		1,074	0.0	%		93.0	%	90.4	%	2.6	%		2,657		2,590	2.6	%

Midwest Average		887		1,074		1,074	0.0	%		93.0	%	90.4	%	2.6	%		2,657		2,590	2.6	%


Pacific Northwest
Seattle, WA		2,738		1,033		1,020	1.3	%		94.6	%	93.1	%	1.5	%		8,024		7,803	2.8	%

Pacific Northwest Average		2,738		1,033		1,020	1.3	%		94.6	%	93.1	%	1.5	%		8,024		7,803	2.8	%


Northern California
San Jose, CA		4,890		1,378		1,392	(1.0	%)		95.9	%	96.1	%	(0.2	%)		19,377		19,620	(1.2	%)
Oakland-East Bay, CA		2,090		1,219		1,212	0.6	%		95.9	%	94.7	%	1.2	%		7,335		7,206	1.8	%
San Francisco, CA		1,765		1,527		1,518	0.6	%		95.3	%	96.2	%	(0.9	%)		7,707		7,733	(0.3	%)

Northern California Average		8,745		1,369		1,375	(0.4	%)		95.8	%	95.8	%	0.0	%		34,419		34,559	(0.4	%)


Southern California
Los Angeles, CA		1,638		1,280		1,255	2.0	%		96.3	%	94.3	%	2.0	%		6,056		5,821	4.0	%
Orange County, CA		1,174		1,239		1,213	2.1	%		95.5	%	96.0	%	(0.5	%)		4,167		4,102	1.6	%
San Diego, CA		1,058		1,317		1,285	2.5	%		96.6	%	96.2	%	0.4	%		4,041		3,928	2.9	%

Southern California Average		3,870		1,277		1,251	2.1	%		96.2	%	95.3	%	0.9	%		14,264		13,851	3.0	%

Average/Total Established		27,127	$	1,421	$	1,427	(0.4	%)		95.8	%	93.8	%	2.0	%	$	110,789	$	109,097	1.6	%

(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 average lease term.
(3)	With concessions reflected on a cash basis, rental revenue from Established Communities increased 2.8% between years.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes - Established Communities (1)
December 31, 2004



	Apartment		Average Rental Rates (2)						Economic Occupancy							Rental Revenue ($000s) (3)
	Homes			Q4 04		Q3 04	% Change			Q4 04		Q3 04		% Change			Q4 04		Q3 04	% Change
Northeast
Fairfield-New Haven, CT		2,170	$	1,526	$	1,529	(0.2	%)		96.6	%	96.5	%	0.1	%	$	9,601	$	9,607	(0.1	%)
New York, NY		1,646		1,932		1,943	(0.6	%)		96.0	%	96.1	%	(0.1	%)		9,162		9,224	(0.7	%)
Boston, MA		1,479		1,601		1,568	2.1	%		95.9	%	95.9	%	0.0	%		6,810		6,676	2.0	%
Northern New Jersey		1,043		2,185		2,138	2.2	%		96.7	%	97.3	%	(0.6	%)		6,609		6,509	1.5	%
Long Island, NY		806		2,120		2,117	0.1	%		96.3	%	98.3	%	(2.0	%)		4,938		5,031	(1.8	%)
Central New Jersey		206		1,530		1,562	(2.0	%)		94.6	%	96.0	%	(1.4	%)		894		927	(3.6	%)

Northeast Average		7,350		1,790		1,781	0.5	%		96.3	%	96.7	%	(0.4	%)		38,014		37,974	0.1	%


Mid-Atlantic
Washington, DC		3,011		1,361		1,359	0.1	%		95.3	%	96.3	%	(1.0	%)		11,716		11,819	(0.9	%)
Baltimore, MD		526		1,127		1,120	0.6	%		95.3	%	96.8	%	(1.5	%)		1,695		1,712	(1.0	%)

Mid-Atlantic Average		3,537		1,326		1,323	0.2	%		95.3	%	96.4	%	(1.1	%)		13,411		13,531	(0.9	%)


Midwest
Chicago, IL		887		1,074		1,072	0.2	%		93.0	%	95.9	%	(2.9	%)		2,657		2,735	(2.9	%)

Midwest Average		887		1,074		1,072	0.2	%		93.0	%	95.9	%	(2.9	%)		2,657		2,735	(2.9	%)


Pacific Northwest
Seattle, WA		2,738		1,033		1,027	0.6	%		94.6	%	95.3	%	(0.7	%)		8,024		8,035	(0.1	%)

Pacific Northwest Average		2,738		1,033		1,027	0.6	%		94.6	%	95.3	%	(0.7	%)		8,024		8,035	(0.1	%)


Northern California
San Jose, CA		4,890		1,378		1,378	0.0	%		95.9	%	95.5	%	0.4	%		19,377		19,318	0.3	%
Oakland-East Bay, CA		2,090		1,219		1,200	1.6	%		95.9	%	95.5	%	0.4	%		7,335		7,185	2.1	%
San Francisco, CA		1,765		1,527		1,516	0.7	%		95.3	%	95.5	%	(0.2	%)		7,707		7,666	0.5	%

Northern California Average		8,745		1,369		1,364	0.4	%		95.8	%	95.5	%	0.3	%		34,419		34,169	0.7	%


Southern California
Los Angeles, CA		1,638		1,280		1,273	0.5	%		96.3	%	95.6	%	0.7	%		6,056		5,980	1.3	%
Orange County, CA		1,174		1,239		1,225	1.1	%		95.5	%	95.8	%	(0.3	%)		4,167		4,133	0.8	%
San Diego, CA		1,058		1,317		1,303	1.1	%		96.6	%	96.8	%	(0.2	%)		4,041		4,002	1.0	%

Southern California Average		3,870		1,277		1,266	0.9	%		96.2	%	96.0	%	0.2	%		14,264		14,115	1.1	%

Average/Total Established		27,127	$	1,421	$	1,414	0.5	%		95.8	%	96.1	%	(0.3	%)	$	110,789	$	110,559	0.2	%

(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 average lease term.
(3)	With concessions reflected on a cash basis, rental revenue from Established Communities increased 1.8% between quarters.

Attachment 6

AvalonBay Communities, Inc.
Full Year Revenue and Occupancy Changes - Established Communities (1)
December 31, 2004



	Apartment		Average Rental Rates (2)						Economic Occupancy							Rental Revenue ($000s) (3)
	Homes			Full Year 04		Full Year 03	% Change			Full Year 04		Full Year 03		% Change			Full Year 04		Full Year 03	% Change
Northeast
Fairfield-New Haven, CT		2,170	$	1,547	$	1,592	(2.8	%)		93.6	%	90.5	%	3.1	%	$	37,719	$	37,619	0.3	%
New York, NY		1,646		1,963		2,011	(2.4	%)		94.5	%	93.4	%	1.1	%		36,632		37,098	(1.3	%)
Boston, MA		1,479		1,582		1,660	(4.7	%)		95.8	%	92.4	%	3.4	%		26,914		27,277	(1.3	%)
Northern New Jersey		1,043		2,174		2,226	(2.3	%)		95.3	%	90.6	%	4.7	%		25,939		25,330	2.4	%
Long Island, NY		806		2,125		2,096	1.4	%		96.2	%	97.2	%	(1.0	%)		19,778		19,707	0.4	%
Central New Jersey		206		1,561		1,600	(2.4	%)		94.9	%	91.9	%	3.0	%		3,664		3,642	0.6	%

Northeast Average		7,350		1,800		1,847	(2.5	%)		94.9	%	92.4	%	2.5	%		150,646		150,673	0.0	%


Mid-Atlantic
Washington, DC		3,011		1,357		1,346	0.8	%		95.6	%	93.7	%	1.9	%		46,905		45,653	2.7	%
Baltimore, MD		526		1,125		1,126	(0.1	%)		96.2	%	96.0	%	0.2	%		6,827		6,821	0.1	%

Mid-Atlantic Average		3,537		1,323		1,315	0.6	%		95.7	%	93.9	%	1.8	%		53,732		52,474	2.4	%


Midwest
Chicago, IL		887		1,079		1,084	(0.5	%)		93.5	%	90.8	%	2.7	%		10,734		10,498	2.2	%

Midwest Average		887		1,079		1,084	(0.5	%)		93.5	%	90.8	%	2.7	%		10,734		10,498	2.2	%


Pacific Northwest
Seattle, WA		2,738		1,024		1,031	(0.7	%)		94.6	%	92.5	%	2.1	%		31,820		31,393	1.4	%

Pacific Northwest Average		2,738		1,024		1,031	(0.7	%)		94.6	%	92.5	%	2.1	%		31,820		31,393	1.4	%


Northern California
San Jose, CA		4,890		1,377		1,442	(4.5	%)		95.9	%	95.4	%	0.5	%		77,483		80,682	(4.0	%)
Oakland-East Bay, CA		2,090		1,205		1,239	(2.7	%)		94.7	%	95.3	%	(0.6	%)		28,639		29,617	(3.3	%)
San Francisco, CA		1,765		1,520		1,543	(1.5	%)		95.6	%	94.9	%	0.7	%		30,782		31,041	(0.8	%)

Northern California Average		8,745		1,365		1,413	(3.4	%)		95.6	%	95.3	%	0.3	%		136,904		141,340	(3.1	%)


Southern California
Los Angeles, CA		1,638		1,271		1,250	1.7	%		95.6	%	94.8	%	0.8	%		23,877		23,292	2.5	%
Orange County, CA		1,174		1,220		1,203	1.4	%		95.6	%	95.6	%	0.0	%		16,434		16,207	1.4	%
San Diego, CA		1,058		1,295		1,281	1.1	%		95.9	%	95.5	%	0.4	%		15,767		15,533	1.5	%

Southern California Average		3,870		1,262		1,243	1.5	%		95.7	%	95.3	%	0.4	%		56,078		55,032	1.9	%

Average/Total Established		27,127	$	1,418	$	1,444	(1.8	%)		95.3	%	93.8	%	1.5	%	$	439,914	$	441,410	(0.3	%)

(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 average lease term.
(3)	With concessions reflected on a cash basis, rental revenue from Established Communities increased 0.1% between years.

Attachment 7

AvalonBay Communities, Inc.
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs
For the Year Ended December 31, 2004
(Dollars in thousands except per home data)


											Categorization of 2004 Addl Capitalized Value (4)														2004 Maintenance Expensed Per Home (6)
											Acquisitions,											Non-Rev
								2004 Addl			Construction,											Generating
	Apartment		Balance at		Balance at			Capitalized			Redevelopment			Revenue		Non-Rev						Capex			Carpet			Other
Current Communities (1)	Homes (2)		12-31-04 (3)		12-31-03 (3)			Value			& Dispositions			Generating (5)		Generating			Total			Per Home			Replacement			Maintenance			Total
Established Communities		27,127	$	2,850,744	$	2,837,444		$	13,300		$	1,263		$	438	$	11,599		$	13,300		$	428		$	148		$	1,211		$	1,359
Other Stabilized Communities		7,737		1,055,791		944,089			111,702			110,755	(7)		199		748			111,702			97			109			1,199			1,308

Total Stabilized		34,864		3,906,535		3,781,533			125,002			112,018			637		12,347			125,002			354			140			1,208			1,348

Development Communities		4,959		635,291		414,831			220,460			220,460	(8)							220,460						12			477			489
Dispositions						121,730			(121,730	)		(121,730	)							(121,730	)					40			684			724
Current Communities Under Redevelopment
Avalon at Prudential Center		781		129,838		128,853			985			985								985						12			2,405			2,416
Avalon Towers		109		15,817		14,189			1,628			1,628								1,628						266			3,138			3,404
Avalon at Fairway Hills III		336		18,946		18,635			311			311								311						140			1,205			1,345
Briarcliffe Lakeside		204		11,689			(9)		11,689			11,689								11,689						29			564			593

Total Redevelopment		1,430		176,290		161,677			14,613			14,613								14,613						64			1,916			1,980

Corporate				31,584		30,724			860						161		699	(10)		860

Total		41,253	$	4,749,700	$	4,510,495		$	239,205		$	225,361		$	798	$	13,046		$	239,205		$	299	(11)	$	122	(12)	$	1,145	(12)	$	1,266	(12)

(1)	For the purpose of this table, Current Communities excludes communities held by unconsolidated real estate joint ventures.
(2)	Apartment homes as of 12/31/04; does not include unconsolidated communities.
(3)	Total gross fixed assets excluding land.
(4)	Policy is to capitalize if the item exceeds $15 and extends the useful life of the asset. Personal property is capitalized if the item is a new addition and it exceeds $2.5.
(5)	Represents expenditures on water saving devices and on submetering equipment.
(6)	Other maintenance includes appliance replacement costs and maintenance payroll costs.
(7)	Relates primarily to five communities acquired in 2004.
(8)	Net of the movement of approximately $25,194 from construction in progress as of 12/31/03 to an unconsolidated joint venture in 2004.
(9)	Community was acquired in 2004.
(10)	Represents primarily computer equipment.
(11)	Total non-revenue generating capitalized costs per home excludes corporate capitalized costs.
(12)	Total 2004 maintenance expensed per home excludes maintenance costs related to Dispositions.

Attachment 8

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity as of December 31, 2004


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

2004 Annual Completions

Development				7		2,135	$	363.7
Redevelopment	(2	)		1				8.3

Total Additions				8		2,135	$	372.0


2003 Annual Completions

Development				7		1,959	$	372.7
Redevelopment

Total Additions				7		1,959	$	372.7


Pipeline Activity:

Currently Under Construction

Development				10		2,668	$	546.7
Redevelopment	(2	)		4				40.3

Subtotal				14		2,668	$	587.0


Planning

Development Rights				49		13,491	$	3,003.0


Total Pipeline				63		16,159	$	3,590.0


			% Economic
			Occ
Non-Stabilized Development Communities: (3)			(1) (4)
Avalon at Grosvenor Station, North Bethesda, MD				93.8%		497		79.0

Total						497	$	79.0

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

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

(3)	Represents Development Communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter. Non-stabilized communities completed in the current quarter are detailed on Attachment #9.

(4)	Represents Economic Occupancy for the fourth 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 fourth quarter of 2004.

Attachment 9

AvalonBay Communities, Inc.
Development Communities as of December 31, 2004


	Percentage					Total			Schedule									Avg
	Ownership			# of		Capital												Rent								% Occ
	Upon			Apt		Cost (1)					Initial				Stabilized			Per		% Comp			% Leased			Physical			Economic
	Completion			Homes		(millions)			Start		Occupancy		Complete		Ops (1)			Home (1)		(2)			(3)			(4) (5)			(1) (6)
																	Inclusive of
																	Concessions
																	See Attachment #14
Under Construction:
1. Avalon Run East II		100	%		312	$	49.3			Q2 2003		Q2 2004		Q2 2005		Q4 2005		$	1,655		69.2	%		68.6	%		62.2	%		45.2	%
Lawrenceville, NJ
2. Avalon at Crane Brook		100	%		387	$	55.9			Q3 2003		Q2 2004		Q1 2005		Q4 2005		$	1,465		94.8	%		74.7	%		71.6	%		61.5	%
Danvers & Peabody, MA
3. Avalon Chrystie Place I (7)		20	%		361	$	151.7			Q4 2003		Q3 2005		Q4 2005		Q2 2006		$	2,705		N/A			N/A			N/A			N/A
New York, NY
4. Avalon Pines I		100	%		298	$	48.7			Q4 2003		Q4 2004		Q3 2005		Q1 2006		$	1,845		40.3	%		44.6	%		25.5	%		8.3	%
Coram, NY
5. Avalon Orange		100	%		168	$	22.4			Q1 2004		Q4 2004		Q3 2005		Q4 2005		$	1,565		33.3	%		22.0	%		14.9	%		5.6	%
Orange, CT
6. 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
7. Avalon Del Rey (8)		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
8. Avalon at Juanita Village (9)					211	$	45.5			Q2 2004		Q3 2005		Q4 2005		Q2 2006		$	1,615		N/A			N/A			N/A			N/A
Kirkland, WA
9. 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
10. Avalon at Bedford Center		100	%		139	$	24.9			Q4 2004		Q4 2005		Q2 2006		Q4 2006		$	1,820		N/A			N/A			N/A			N/A
Bedford, MA


Subtotal/Weighted Average					2,668	$	546.7											$	1,805


Completed this Quarter:
1. Avalon at Glen Cove South		100	%		256	$	67.3			Q3 2002		Q1 2004		Q4 2004		Q2 2005		$	2,365		100.0	%		89.5	%		88.3	%		86.2	%
Glen Cove, NY
2. Avalon at Traville		100	%		520	$	70.0			Q4 2002		Q3 2003		Q4 2004		Q2 2005		$	1,465		100.0	%		92.7	%		92.3	%		90.3	%
North Potomac, MD
3. Avalon Milford I		100	%		246	$	31.5			Q3 2003		Q2 2004		Q4 2004		Q2 2005		$	1,370		100.0	%		85.4	%		83.7	%		75.2	%
Milford, CT
4. Avalon at The Pinehills I		100	%		101	$	19.9			Q4 2003		Q3 2004		Q4 2004		Q3 2005		$	2,195		100.0	%		73.3	%		68.3	%		42.9	%
Plymouth, MA


Subtotal/Weighted Average					1,123	$	188.7											$	1,715


Total/Weighted Average					3,791	$	735.4											$	1,780


Weighted Average Projected NOI as a % of Total Capital Cost (1) (10)							8.0	%	Inclusive of Concessions - See Attachment #14

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

(2)	Includes apartment homes for which construction has been completed and accepted by management as of January 21, 2005.

(3)	Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of January 21, 2005.

(4)	Physical occupancy based on apartment homes occupied as of January 21, 2005.

(5)	Q4 2004 Net Operating Income/(Deficit) for communities under construction and communities completed in current and prior quarters that had not achieved Stabilized Operations for the entire current quarter (as detailed on Attachment #8) was $4.7 million. See Attachment #14.

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

(7)	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 $30.3 million including community-based tax-exempt debt.

(8)	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.

(9)	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.

(10)	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 fourth quarter of 2004.

Attachment 10

AvalonBay Communities, Inc.
Redevelopment Communities (1) as of December 31, 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		@ 12/31/04
																Inclusive of
																Concessions
																See Attachment #14
Under Redevelopment:
1. Avalon at Prudential Center (4)		781	$	133.9	$	160.0			Q3 1998		Q4 2000		Q2 2006		Q4 2006	$	2,640		517		36
Boston, MA
2. Avalon Towers		109	$	17.3	$	21.5			Q3 1995		Q3 2004		Q3 2005		Q3 2005	$	3,330
Long Beach, NY
3. Avalon at Fairway Hills III (5)		336	$	23.3	$	29.4			Q3 1996		Q4 2004		Q2 2006		Q4 2006	$	1,275		2		31
Columbia, MD
4. Briarcliffe Lakeside (6)		204	$	14.5	$	18.4			Q3 2004		Q4 2004		Q1 2006		Q3 2006	$	955		2
Wheaton, IL


Total/Weighted Average		1,430	$	189.0	$	229.3										$	2,130		521		67


Weighted Average Projected NOI as a % of Total Capital Cost (3)						9.5	%	Inclusive of Concessions - See Attachment #14

(1)	Redevelopment Communities are communities for which redevelopment costs are expected to exceed 10% of the original acquisition cost or $5.0 million.

(2)	Inclusive of acquisition cost.

(3)	See Attachment #14 - 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.

(5)	This is one of two communities that previously comprised Avalon at Fairway Hills II. In connection with the beginning of its renovation, this community will now be reported separately as Phase III.

(6)	This community was acquired in Q3 2004 and is currently owned by a wholly-owned subsidiary of the Company. However, the Company expects to reduce its ownership of the community from 100% to 20% upon closing of the Companys Investment Management Fund (the IM Fund) in 2005.

	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 fourth quarter of 2004.

Attachment 11

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of December 31, 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 - 2003 Actual		1,781	$	304,470,471	$	335,364,317	$	325,139,145	$	240,137,497


2004 Actual:
Quarter 1		345	$	69,258,020	$	61,978,159	$	366,959,227	$	265,153,787
Quarter 2		771		111,145,634		130,021,954		254,299,634		296,508,756
Quarter 3		655		53,934,546		108,786,193		332,143,584		264,259,419
Quarter 4		410		67,845,190		67,514,664		287,812,355		266,548,250

Total - 2004 Actual		2,181	$	302,183,390	$	368,300,970


2005 Projected:
Quarter 1		294	$	97,006,555	$	45,959,281	$	190,805,801	$	323,557,542
Quarter 2		452		55,029,862		71,695,959		135,775,938		295,645,770
Quarter 3		517		40,645,715		84,105,003		95,130,223		211,104,659
Quarter 4		377		34,698,158		60,785,066		60,432,065		124,519,345

Total - 2005 Projected		1,640	$	227,380,290	$	262,545,309

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 - 2003 Actual			$	8,008,966	$	5,660,027	$	13,045,931


2004 Actual:
Quarter 1		30	$	676,563	$	4,362,256	$	28,533
Quarter 2		31		887,369		7,444,068
Quarter 3		38		496,577		7,132,039		865,315
Quarter 4		44		1,482,707		15,710,325		2,139,555

Total - 2004 Actual			$	3,543,216


2005 Projected:
Quarter 1		74	$	3,939,988	$	11,770,337	$	5,182,815
Quarter 2		78		4,170,054		7,600,283		4,738,462
Quarter 3		84		2,684,993		4,915,290		5,405,714
Quarter 4		62		2,341,906		2,573,385		2,953,077

Total - 2005 Projected			$	13,136,941

(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 #14 - 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 Q4 2004 includes $129.6 million attributed to three anticipated Q1 2005 development starts. One of the anticipated starts is expected to be developed under a joint venture structure and to be financed in part by a construction loan. The Companys portion of the Total Capital Cost of this joint venture is projected to be $29.3 million including community-based debt. Remaining to Invest also includes $13.2 million attributed to Avalon Chrystie Place I. The Companys portion of the Total Capital Cost of this joint venture is projected to be $30.3 million including community-based tax-exempt debt.

(6)	Represents period end balance of construction or reconstruction costs. Amount for Q4 2004 includes $95.4 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 fourth quarter of 2004.

Attachment 12

AvalonBay Communities, Inc.
Future Development as of December 31, 2004

DEVELOPMENT RIGHTS


				Estimated		Total
				Number		Capital Cost (1)
Location of Development Right				of Homes		(millions)
	1.	Los Angeles, CA	(2)		123	$	40
	2.	San Francisco, CA			313		117
	3.	Newton, MA	(2)		204		63
	4.	Rockville, MD Phase II			196		28
	5.	Long Island City, NY Phase II and III			602		176
	6.	Lyndhurst, NJ	(2)		328		81
	7.	New York, NY Phase II and III	(2)		308		142
	8.	New Rochelle, NY Phase II and III			588		165
	9.	Coram, NY Phase II	(2)		152		26
	10.	Bellevue, WA			368		78
	11.	Shrewsbury, MA			264		40
	12.	Wilton, CT			100		24
	13.	Hingham, MA			236		44
	14.	Glen Cove, NY	(2)		111		32
	15.	Quincy, MA	(2)		148		24
	16.	Plymouth, MA Phase II			69		13
	17.	Dublin, CA Phase I			304		72
	18.	Lexington, MA			387		76
	19.	Andover, MA			115		21
	20.	Encino, CA	(2)		131		51
	21.	West Haven, CT			170		23
	22.	Woburn, MA			446		84
	23.	Danvers, MA			428		80
	24.	Canoga Park, CA			200		47
	25.	Tinton Falls, NJ			298		51
	26.	Greenburgh, NY Phase II			766		120
	27.	Seattle, WA	(2)		194		54
	28.	Oyster Bay, NY			273		69
	29.	Norwalk, CT			312		63
	30.	College Park, MD			320		44
	31.	Union City, CA Phase I	(2)		230		58
	32.	Union City, CA Phase II	(2)		209		54
	33.	Irvine, CA			290		63
	34.	Stratford, CT			146		23
	35.	Sharon, MA			156		26
	36.	Gaithersburg, MD			254		41
	37.	White Plains, NY			430		149
	38.	Camarillo, CA			376		55
	39.	Cohasset, MA			200		38
	40.	Dublin, CA Phase II			200		52
	41.	Dublin, CA Phase III			205		53
	42.	Milford, CT	(2)		284		45
	43.	Alexandria, VA			282		56
	44.	Shelton, CT			302		49
	45.	Wheaton, MD	(2)		320		56
	46.	Yaphank, NY			254		43
	47.	Plainview, NY			220		47
	48.	Rockville, MD	(2)		240		46
	49.	Tysons Corner, VA	(2)		439		101

		Total			13,491	$	3,003

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

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

	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 fourth quarter of 2004.

Attachment 13

AvalonBay Communities, Inc.
Summary of Disposition Activity as of December 31, 2004
(Dollars in thousands)

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) (2)

1998:

9 Communities

170,312

25,270

23,438

1,832

8.1

16.2

1999:

16 Communities

317,712

47,093

27,150

19,943

8.3

12.1

2000:

8 Communities

160,085

40,779

6,262

34,517

7.9

15.3

2001:

7 Communities

241,130

62,852

21,623

41,229

8.0

14.3

2002:

1 Community

80,100

48,893

7,462

41,431

5.4

20.1

2003:

12 Communities, 1 Land Parcel(3)

460,600

184,438

52,613

131,825

6.3

13.4

2004:

5 Communities, 1 Land Parcel

250,977

122,425

19,320

103,105

4.8

16.5

1998 - 2004 Total

5.3

1,680,916

531,750

157,868

373,882

7.0

14.1

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

(2)	Weighted Average Unleveraged IRRs have been restated from amounts previously reported to reflect a change in methodology. See Attachment #14 - Definition and Reconciliations of Non-GAAP Financial Measures and Other Terms for a description of the current methodology.

(3)	2003 GAAP gain, for purposes of this attachment, includes $23,448 related to the sale of a community in which the Company held a 50% membership interest.

Attachment 14

AvalonBay Communities, Inc.
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms

This release, including its attachments, contains certain non-GAAP financial measures and other terms. The definition and calculation of these non-GAAP financial measures and other terms may differ from the definitions and methodologies used by other REITs and, accordingly, may not be comparable. The non-GAAP financial measures referred to below should not be considered an alternative to net income as an indication of our performance. In addition, these non-GAAP financial measures do not represent cash generated from operating activities in accordance with GAAP and therefore should not be considered as an alternative measure of liquidity or as indicative of cash available to fund cash needs.

FFO is determined based on a definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT). FFO is calculated by the Company as net income or loss computed in accordance with GAAP, adjusted for gains or losses on sales of previously depreciated operating communities, extraordinary gains or losses (as defined by GAAP), cumulative effect of a change in accounting principle and depreciation of real estate assets, including adjustments for unconsolidated partnerships and joint ventures. Management generally considers FFO to be an appropriate supplemental measure of operating performance because, by excluding gains or losses related to dispositions of previously depreciated operating communities and excluding real estate depreciation (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a companys real estate between periods or as compared to different companies. A reconciliation of FFO to net income is as follows (dollars in thousands):




	Q4			Q4			Full Year			Full Year
	2004			2003			2004			2003

Net income	$	114,069		$	100,283		$	219,745		$	271,525
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(8,700	)		(10,744	)
Depreciation - real estate assets, including discontinued operations and joint venture adjustments		39,285			38,972			157,988			128,278
Minority interest, including discontinued operations		927			216			3,048			1,263
Cumulative effect of change in accounting principle								(4,547	)
Gain on sale of operating communities		(87,288	)		(77,599	)		(121,287	)		(159,756	)

FFO attributable to common stockholders	$	64,818		$	59,697		$	246,247		$	230,566


Average shares outstanding - diluted		74,050,732			72,227,335			73,354,956			70,203,467
EPS - diluted	$	1.52		$	1.36		$	2.92		$	3.73

FFO per common share - diluted	$	0.88		$	0.83		$	3.36		$	3.28

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 first quarter and full year 2005 to the range provided for projected EPS (diluted) is as follows:




	Low			High
	range			range

Projected EPS (diluted) - Q1 05	$	0.65		$	0.69
Projected depreciation (real estate related)		0.55			0.59
Projected gain on sale of operating communities		(0.29	)		(0.33	)

Projected FFO per share (diluted) - Q1 05	$	0.91		$	0.95


Projected EPS (diluted) - Full Year 2005	$	1.93		$	2.13
Projected depreciation (real estate related)		2.29			2.33
Projected gain on sale of operating communities		(0.71	)		(0.75	)

Projected FFO per share (diluted) - Full Year 2005	$	3.51		$	3.71

Attachment 14 (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 real estate assets, 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.

Attachment 14 (continued)

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




	Q4			Q4			Q3			Full Year			Full Year
	2004			2003			2004			2004			2003

Net income	$	114,069		$	100,283		$	45,366		$	219,745		$	271,525
Property management and other indirect operating expenses		7,286			7,655			6,975			27,956			27,123
Investments and investment management		1,207			545			932			4,691			2,948
Interest income		(96	)		(805	)		(42	)		(194	)		(3,440	)
Interest expense		33,522			32,769			33,240			131,314			133,637
General and administrative expense		4,976			3,434			3,898			18,074			14,830
Joint venture income, minority interest and venture partner interest in profit-sharing		(733	)		309			510			228			(22,897	)
Depreciation expense		40,346			38,181			42,451			160,815			147,658
Cumulative effect of change in accounting principle											(4,547	)
Gain on sale of real estate assets		(87,288	)		(78,832	)		(22,762	)		(122,425	)		(160,990	)
Income from discontinued operations		(1,282	)		(1,964	)		(451	)		(6,444	)		(16,494	)

NOI from continuing operations	$	112,007		$	101,575		$	110,117		$	429,213		$	393,900


Established:
Northeast	$	25,558		$	24,607		$	24,683		$	100,016		$	100,386
Mid-Atlantic		9,609			9,426			9,505			37,945			36,998
Midwest		1,490			1,467			1,579			6,188			5,796
Pacific NW		4,952			4,872			4,990			19,843			19,489
No. California		23,508			24,629			23,403			94,696			100,669
So. California		10,180			9,900			9,804			39,634			38,947

Total Established		75,297			74,901			73,964			298,322			302,285

Other Stabilized		19,153			16,503			20,857			74,409			57,591
Development/Redevelopment		17,456			9,610			15,197			55,967			32,829
Non-Allocated		101			561			99			515			1,195

NOI from continuing operations	$	112,007		$	101,575		$	110,117		$	429,213		$	393,900

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 December 31, 2004). A reconciliation of NOI from communities sold or held for sale to net income for these communities for the fourth quarter and full year 2004 is as follows (dollars in thousands):




	Q4		Full Year
	2004		2004

Income from discontinued operations	$	1,282	$	6,444
Interest expense, net		80		508
Minority interest expense				37
Depreciation expense				1,852

NOI from discontinued operations	$	1,362	$	8,841


NOI from assets sold	$	1,362	$	8,841
NOI from assets held for sale

NOI from discontinued operations	$	1,362	$	8,841

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

Attachment 14 (continued)

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 share of the Total Capital Cost of each community, based on its percentage ownership.

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.

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):




	Q4			Q4			Q3			Full Year			Full Year
	2004			2003			2004			2004			2003

Rental revenue (GAAP basis)	$	110,789		$	109,097		$	110,559		$	439,914		$	441,410
Concessions amortized		4,167			3,594			4,289			16,260			12,506
Concessions granted		(3,399	)		(4,209	)		(5,252	)		(16,418	)		(14,567	)

Rental revenue (with concessions on a cash basis)	$	111,557		$	108,482		$	109,596		$	439,756		$	439,349


% change - GAAP revenue					1.6	%		0.2	%					(0.3	%)

% change - cash revenue					2.8	%		1.8	%					0.1	%

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 13.

Attachment 14 (continued)

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.

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 December 31, 2004 is as follows (dollars in thousands):




Total debt	$	2,478,967

Common stock		5,465,430
Preferred stock		100,000
Operating partnership units		37,957
Total debt		2,478,967

Total market capitalization		8,082,354

Debt as % of capitalization		30.7	%

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 realizable value of the Companys assets in liquidation is not easily determinable and may differ substantially from the Companys Total Market Capitalization.

Attachment 14 (continued)

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, the Company believes that investors and creditors view Unencumbered NOI as a useful supplemental measure for determining the financial flexibility of an entity. A calculation of Unencumbered NOI for the year ended December 31, 2004 is as follows (dollars in thousands):




NOI for Established Communities	$	298,322
NOI for Other Stabilized Communities		74,409
NOI for Development/Redevelopment Communities		55,967
NOI for discontinued operations		8,841

Total NOI generated by real estate assets		437,539
NOI on encumbered assets		78,231


NOI on unencumbered assets		359,308

Unencumbered NOI		82.1	%

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 gains on sale of partnership interests.

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




Net income	$	114,069
Interest income		(96	)
Interest expense		33,522
Interest expense (discontinued operations)		80
Depreciation expense		40,346


EBITDA	$	187,921


EBITDA from continuing operations	$	99,271
EBITDA from discontinued operations		88,650


EBITDA	$	187,921


EBITDA from continuing operations	$	99,271

Interest expense		33,522
Interest income		(96	)
Dividends attributable to preferred stock		2,175


Interest charges		35,601


Interest coverage		2.8

In the calculations of EBITDA above, EBITDA from discontinued operations includes $87,288 in gain on sale of communities.

Attachment 14 (continued)

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. The weighted average Unleveraged IRR for sold communities is weighted based on all cash flows over the holding period for each respective community, including net sales proceeds.

Form: 8-K

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