February 1, 2007 - EXHIBIT 99.2 - 8-K: Current report filing

AvalonBay Communities, Inc.


For Immediate News Release		Exhibit 99.2
January 31, 2007

AVALONBAY COMMUNITIES, INC. ANNOUNCES
FOURTH QUARTER AND FULL YEAR 2006 OPERATING RESULTS
AND RAISES COMMON DIVIDEND

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended December 31, 2006 was $47,101,000. This resulted in Earnings per Share diluted (EPS) of $0.62 for the quarter ended December 31, 2006, compared to $1.26 for the comparable period of 2005, a per share decrease of 50.8%. For the year ended December 31, 2006, EPS was $3.57 compared to $4.21 for the comparable period of 2005, a per share decrease of 15.2%. These decreases are primarily attributable to gains from increased sales volume in 2005, partially offset by growth in income from existing and newly developed communities in 2006.

Funds from Operations attributable to common stockholders diluted (FFO) for the quarter ended December 31, 2006 was $82,549,000, or $1.09 per share compared to $70,109,000, or $0.93 per share for the comparable period of 2005, a per share increase of 17.2%. This increase is driven primarily from improved community operating results and contributions by newly developed communities.

FFO per share for the year ended December 31, 2006 increased by 16.2% to $4.38 from $3.77 for the year ended December 31, 2005. FFO per share for the year ended December 31, 2006 includes $0.18 per share related to the sale of three land parcels and the final installment from the sale of a technology venture. FFO per share for the year ended December 31, 2005 includes several non-routine items totaling $0.11 per share. Adjusting for these non-routine items in both years, FFO per share increased 14.8%, driven primarily by contributions from improved community operating results and newly developed communities.

Commenting on the Companys results, Bryce Blair, Chairman and CEO, said, Fourth quarter NOI growth of nearly 11% capped a year of strong financial performance for the Company, and we expect another year of strong earnings growth in 2007. This supports our announcement last evening that we raised our quarterly dividend by 9% for the first quarter.

Operating Results for the Quarter Ended December 31, 2006 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $16,198,000, or 9.1% to $193,800,000. For Established Communities, rental revenue increased 7.4%, comprised of an increase in Average Rental Rates of 7.7% and a decrease in Economic Occupancy of 0.3%. As a result, total revenue for Established Communities increased $10,066,000 to $144,073,000. Operating expenses for Established Communities increased $130,000, or 0.3% to $43,339,000. Accordingly, Net Operating Income (NOI) for Established Communities increased by $9,936,000, or 10.9%, to $100,734,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the fourth quarter of 2005 to the fourth quarter of 2006:



4Q 06 Compared to 4Q 05

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		4.2	%		1.7	%		5.9	%		40.0	%
Mid-Atlantic		9.9	%		(2.9	%)		15.3	%		18.3	%
Midwest		6.3	%		(4.0	%)		13.7	%		2.1	%
Pacific NW		11.6	%		0.2	%		18.3	%		4.5	%
No. California		9.8	%		0.7	%		14.1	%		22.5	%
So. California		6.2	%		0.5	%		8.6	%		12.6	%

Total		7.4	%		0.3	%		10.9	%		100.0	%


(1)		Total represents each regions % of total NOI from the Company, including discontinued operations, development and redevelopment communities.

Operating Results for the Year Ended December 31, 2006 Compared to the Prior Year

For the Company, including discontinued operations, total revenue increased by $41,540,000, or 6.0% to $739,087,000. For Established Communities, rental revenue increased 6.8%, comprised of an increase in Average Rental Rates of 6.3% and an increase in Economic Occupancy of 0.5%. As a result, total revenue for Established Communities increased $36,026,000 to $560,200,000, and operating expenses for Established Communities increased $3,810,000 or 2.3% to $173,141,000. Accordingly, NOI for Established Communities increased by $32,216,000 or 9.1% to $387,059,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the year ended December 31, 2006 as compared to the year ended December 31, 2005:



Full Year 2006 Compared to Full Year 2005

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		4.5	%		3.6	%		5.1	%		41.2	%
Mid-Atlantic		8.9	%		0.7	%		12.5	%		17.7	%
Midwest		3.3	%		(2.9	%)		7.4	%		2.2	%
Pacific NW		10.1	%		4.8	%		13.0	%		4.4	%
No. California		8.4	%		1.8	%		11.6	%		22.5	%
So. California		6.6	%		0.7	%		9.1	%		12.0	%

Total		6.8	%		2.3	%		9.1	%		100.0	%


(1)		Total represents each regions % of total NOI from the Company, including discontinued operations, development and redevelopment communities.

Cash concessions are recognized in accordance with Generally Accepted Accounting Principles (GAAP) and are amortized over the approximate lease term, which is generally one year. The following table reflects the percentage changes in rental revenue on a GAAP basis and Rental Revenue with Concessions on a Cash Basis for our Established Communities:



				Full Year 06
				vs
	4Q 06 vs 4Q 05			Full Year 05
Rental Revenue Change with Concessions on a GAAP Basis		7.4	%		6.8	%

Rental Revenue Change with Concessions on a Cash Basis		6.3	%		7.3	%

Development and Redevelopment Activity

The Company completed the development of two communities during the fourth quarter of 2006. Avalon Bowery Place I, located in New York, NY, is a wholly-owned high-rise community containing 206 apartment homes and 21,400 square feet of retail space and was completed for a Total Capital Cost of $98,500,000. Avalon at Mission Bay North II, located in San Francisco, CA, is a high-rise community containing 313 apartment homes and was completed for a Total Capital Cost of $108,200,000. Avalon at Mission Bay North II was developed through a joint venture in which the Company owns a 25% equity interest.

During 2006, the Company completed development of six communities, containing an aggregate of 1,368 apartment homes for an aggregate Total Capital Cost of $375,200,000.

The Company commenced construction of two wholly-owned communities during the fourth quarter of 2006: Avalon Canoga Park, located in Los Angeles, CA, and Avalon Acton, located in Acton, MA. Avalon Canoga Park is expected to contain 210 apartment homes when completed for a Total Capital Cost of $53,900,000. Avalon Acton is expected to contain 380 apartment homes when completed for a Total Capital Cost of $68,800,000.

During 2006, the Company commenced the development of eight communities which are expected to contain a total of 2,459 apartment homes for an expected aggregate Total Capital Cost of $686,600,000.

Acquisition Activity

During the fourth quarter of 2006, the Company acquired Southgate Crossing, located in Columbia, MD, for $35,850,000. Southgate Crossing is a wholly-owned, garden-style community containing 215 apartment homes.

In addition, the Company completed the purchase of its partners interest in Avalon Run, a community developed through a general partnership in 1994, for approximately $58,500,000. Avalon Run is a 426 apartment-home community, located in Lawrenceville, NJ, and is now a wholly-owned community.

In January 2007, the Company purchased a parcel of land located in Brooklyn, NY for approximately $70,000,000. The Company expects to begin construction of this high-rise community in the second half of 2007.

Disposition Activity

During the fourth quarter of 2006, the Company and its joint venture partner sold Avalon Bedford, a 368 apartment-home community located in Stamford, CT, for a sales price of $79,100,000. Avalon Bedford was owned by a joint venture in which the Company had a 25% equity interest. The Companys share of the gain as reported in accordance with GAAP is $6,609,000 and its share of the Economic Gain is $3,994,000.

During the fourth quarter of 2006, the Company completed a previously arranged transaction to admit a 70% partner to the joint venture which owns Avalon Del Rey, while retaining a 30% investment interest and serving as the managing member. This joint venture entity will continue to be consolidated.

Excluding dispositions to joint venture entities where the Company retains an economic interest, the Company sold four communities during 2006 (one through a joint venture), containing a total of 1,036 apartment homes, and three land parcels. These communities and land parcels were sold for an aggregate sales price of approximately $281,485,000, resulting in a GAAP Gain of $117,539,000 and an Economic Gain of $95,840,000. Excluding the land parcels, the weighted average Initial Year Market Cap Rate related to these dispositions was 4.6% and the Unleveraged IRR over a weighted average hold period of eight years was 15.2%.

Investment Management Fund Activity

AvalonBay Value Added Fund, L.P. (the Fund) is a private, discretionary investment vehicle in which the Company holds an equity interest of approximately 15%. During the fourth quarter of 2006, the Fund acquired two communities:

		The Covington, located in Lombard (Chicago), IL, is a garden-style community containing 256 apartment homes and was acquired for a purchase price of $32,250,000; and

		Cedar Valley, located in Columbia (Baltimore), MD, is a garden-style community containing 156 apartment homes, and was acquired for a purchase price of $20,700,000.

During 2006, the Fund acquired a total of five communities, containing an aggregate of 1,182 apartment homes for an aggregate purchase price of $223,670,000.

In January 2007, the Fund acquired Centerpoint for a purchase price of $78,500,000. Centerpoint consists of a newly constructed high-rise tower and separate, recently renovated historic mid-rise buildings located within a single downtown city block of Baltimore, MD. The community contains a total of 392 apartment homes and approximately 33,000 square feet of retail space.

During the fourth quarter of 2006, the Fund commenced the redevelopment of the following communities:

		Avalon at Poplar Creek, located in Schaumburg (Chicago), IL, is a garden-style community containing 196 apartment homes with an expected Total Capital Cost of $3,400,000, excluding costs incurred prior to the start of redevelopment; and

		Civic Center Place, located in Norwalk (Los Angeles), CA, is a garden-style community containing 192 apartment homes with an expected Total Capital Cost of $5,400,000, excluding costs incurred prior to the start of redevelopment.

Financing, Liquidity and Balance Sheet Statistics

During the fourth quarter of 2006, the Company entered into a new $650,000,000 variable rate unsecured credit facility, replacing its old facility. Pricing under the new facility is the London Interbank Offered Rate plus 0.4%, a reduction in pricing of 0.15% from the previous facility. The rate can be higher or lower based on the credit rating of the Company and selected maturity of the borrowings. This credit facility may be increased by the Company to $1,000,000,000 (provided that one or more banks voluntarily agree to provide the additional commitment) and has a term of four years with a single one-year renewal option.

As of December 31, 2006, the Company had no amounts outstanding under its $650,000,000 unsecured credit facility. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 22.3% at December 31, 2006. Unencumbered NOI for the year ended December 31, 2006 exceeded 82% and Interest Coverage for the fourth quarter of 2006 was 3.9 times.

In January 2007, the Company filed a new shelf registration statement with the Securities and Exchange Commission, allowing the Company to sell an undetermined number or amount of certain debt and equity securities as defined in the prospectus.

In January 2007, in conjunction with the inclusion of its common stock in the S&P 500 Index, the Company issued 4,600,000 shares of its common stock at $129.30 per share. Net proceeds in the amount of approximately $594,000,000 will be used for general corporate purposes.

First Quarter 2007 Dividend Declaration

The Company announced yesterday that its Board of Directors declared a dividend for the first quarter of 2007 of $0.85 per share on the Companys common stock (par value $0.01 per share). The declared dividend represents a 9.0%, or $0.07 per share, increase over the Companys prior quarterly dividend of $0.78 per share. The common stock dividend is payable April 16, 2007 to all common stockholders of record as of April 2, 2007.

In declaring the increased dividend, the Board of Directors evaluated the Companys past performance and future prospects for earnings growth. Additional factors considered in determining the increase include current dividend distributions (both common and preferred dividends), the ratio of the current common dividend distribution to the Companys FFO, the relationship of dividend distributions to taxable income, and expected growth in taxable income. Taxable income growth is not directly comparable to growth in FFO.

The Board of Directors also declared a dividend on the Series H Cumulative Redeemable Preferred Stock (par value $0.01 per share) for the first quarter of 2007. The Series H Cumulative Redeemable Preferred Stock dividend is $0.54375 per share and is payable June 15, 2007 to all Series H stockholders of record as of June 1, 2007.

2007 Financial Outlook

As noted in the Companys initial 2007 financial outlook provided on January 8, 2007, the Company expects EPS in the range of $3.66 to $3.90 for the full year 2007. The Company expects Projected FFO per share in the range of $4.68 to $4.92 for the full year 2007.

Based on the Companys results for the fourth quarter of 2006, the Company expects EPS in the range of $0.59 to $0.63 for the first quarter of 2007 and Projected FFO per share in the range of $1.13 to $1.17 for the first quarter of 2007.

The Company expects to release its first quarter 2007 earnings on April 25, 2007 after the market closes. The Company expects to hold a conference call on April 26, 2007 at 1:00 PM EDT to discuss the first quarter 2007 results.

First Quarter 2007 Conference/Event Schedule

The Company is scheduled to present at the Citigroup 2007 REIT CEO Conference in Naples, FL at 9:45 AM EST on Tuesday, March 6, 2007. Managements presentation will be followed by a question and answer session during which Management may discuss the Companys current operating environment; operating trends; development, redevelopment, disposition and acquisition activity; financial 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 at http://www.avalonbay.com/events beginning March 5, 2007.

Other Matters

The Company will hold a conference call on February 1, 2007 at 1:00 PM EST to review and answer questions about this release, its fourth quarter and full year results, the Attachments (described below) and related matters. To participate on the call, dial 1-877-510-2397 domestically and 1-706-634-5877 internationally.

To hear a replay of the call, which will be available from February 1, 2007 at 3:00 PM EST until February 8, 2007 at 11:59 PM EST, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 5181480.

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 at http://www.avalonbay.com/earnings and through e-mail distribution. To receive future press releases via e-mail, please send a request to IR@avalonbay.com. Some items referenced in the earnings release may require the Adobe Acrobat Reader. If you do not have the Adobe Acrobat Reader, you may download it at http://www.adobe.com/products/acrobat/readstep2.html

About AvalonBay Communities, Inc.

As of December 31, 2006, the Company owned or held a direct or indirect ownership interest in 167 apartment communities containing 48,294 apartment homes in ten states and the District of Columbia, of which 17 communities were under construction and six communities were under reconstruction. The Company 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 may be found on the Companys website at the following address http://www.avalonbay.com. For additional information, please contact John Christie, Senior Director of Investor Relations and Research at 1-703-317-4747 or Thomas J. Sargeant, Chief Financial Officer, at 1-703-317-4635.

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, outlook 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; or we may abandon development or redevelopment opportunities for which we have already incurred costs.

Additional discussions of risks and uncertainties appear 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, 2005 under the headings Risk Factors and under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations - Forward-Looking Statements, as well as the Companys Quarterly Reports on Form 10-Q for subsequent quarters 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 and full year 2007. 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.

Definitions and Reconciliations

Non-GAAP financial measures and other capitalized terms, as used in this earnings release, are defined and further explained on Attachment 15, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 15 is included in the full earnings release available at the Companys website at http://www.avalonbay.com/earnings.

FOURTH QUARTER 2006

Supplemental Operating and Financial Data

Avalon Bowery Place I, located in New York City, is the wholly-owned second phase of a three-phase community. The first phase, Avalon Chrystie Place, was completed in the fourth quarter of 2005.

Avalon Bowery Place I contains 206 apartment homes and offers residents studio, one, and two-bedroom apartment homes. The ground level contains 21,400 square feet of retail space and there is an underground parking garage with 131 parking spaces. The community features a fitness center and resident lounge with a billiards room. Apartment home features include hard wood flooring and walk-in closets. Avalon Bowery Place I provides easy access to the subway and 2nd Avenue, both a block away.

Avalon Bowery Place I was completed in the fourth quarter of 2006 for a Total Capital Cost of $98.5 million. The third phase of this community, Avalon Bowery Place II, which will contain 90 apartment homes, is currently under construction and is expected to be completed in the first quarter of 2008 for a Total Capital Cost of $61.9 million.

FOURTH QUARTER 2006

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
Unconsolidated Real Estate Investments		Attachment 13
Summary of Disposition Activity		Attachment 14

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 15

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, 2005 and the Companys Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
December 31, 2006
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q4		Q4					Full Year		Full Year
	2006		2005		% Change			2006		2005		% Change
Net income available to common stockholders	$	47,101	$	94,554		(50.2	%)	$	269,699	$	313,678		(14.0	%)

Per common share basic	$	0.63	$	1.29		(51.2	%)	$	3.64	$	4.30		(15.3	%)
Per common share diluted	$	0.62	$	1.26		(50.8	%)	$	3.57	$	4.21		(15.2	%)

Funds from Operations	$	82,549	$	70,109		17.7	%	$	330,819	$	281,773		17.4	%
Per common share diluted	$	1.09	$	0.93		17.2	%	$	4.38	$	3.77		16.2	%

Dividends declared common	$	58,241	$	52,301		11.4	%	$	232,455	$	208,282		11.6	%
Per common share	$	0.78	$	0.71		9.9	%	$	3.12	$	2.84		9.9	%

Common shares outstanding		74,668,372		73,663,048		1.4	%		74,668,372		73,663,048		1.4	%
Outstanding operating partnership units		144,955		454,064		(68.1	%)		144,955		454,064		(68.1	%)

Total outstanding shares and units		74,813,327		74,117,112		0.9	%		74,813,327		74,117,112		0.9	%


Average shares outstanding basic		74,357,025		73,338,935		1.4	%		74,125,795		72,952,492		1.6	%
Average operating partnership units outstanding		148,483		454,064		(67.3	%)		172,255		474,440		(63.7	%)
Effect of dilutive securities		1,392,166		1,339,562		3.9	%		1,288,848		1,332,386		(3.3	%)

Average shares outstanding diluted		75,897,674		75,132,561		1.0	%		75,586,898		74,759,318		1.1	%

DEBT COMPOSITION AND MATURITIES


			% of Total			Average
			Market			Interest			Remaining
Debt Composition (1)	Amount		Cap			Rate(2)			Maturities(1)

Conventional Debt										2007	$	268,521
Long-term, fixed rate	$	2,199,533		17.4	%					2008	$	209,086
Long-term, variable rate		111,065		0.8	%					2009	$	231,624
										2010	$	235,343
										2011	$	391,213

Subtotal, Conventional		2,310,598		18.2	%		6.4	%


Tax-Exempt Debt
Long-term, fixed rate		190,739		1.5	%
Long-term, variable rate		327,171		2.6	%

Subtotal, Tax-Exempt		517,910		4.1	%		5.7	%


Total Debt	$	2,828,508		22.3	%		6.3	%


⁽¹⁾		Excludes debt associated with communities classified as held for sale.

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

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q406	$	13,909	$	6,847	$	92
Q306	$	12,910	$	6,361	$	203
Q206	$	11,205	$	5,377	$	164
Q106	$	8,364	$	5,559	$	38
Q405	$	7,067	$	5,477	$	77

COMMUNITY INFORMATION


			Apartment
	Communities		Homes

Current Communities		150		43,141
Development Communities		17		5,153
Development Rights		54		14,185

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
December 31, 2006
(Dollars in thousands except per share data)
(unaudited)


	Q4			Q4						Full Year			Full Year
	2006			2005			% Change			2006			2005			% Change
Revenue:
Rental and other income	$	191,727		$	171,969			11.5	%	$	731,041		$	666,376			9.7	%
Management, development and other fees		2,073			1,129			83.6	%		6,259			4,304			45.4	%

Total		193,800			173,098			12.0	%		737,300			670,680			9.9	%


Operating expenses:
Direct property operating expenses, excluding property taxes		45,787			40,336			13.5	%		169,685			155,481			9.1	%
Property taxes		17,379			16,673			4.2	%		68,257			65,487			4.2	%
Property management and other indirect operating expenses		9,085			8,079			12.5	%		34,177			31,243			9.4	%
Investments and investment management(1)		1,773			1,460			21.4	%		7,033			4,834			45.5	%

Total		74,024			66,548			11.2	%		279,152			257,045			8.6	%


Interest expense, net		(28,851	)		(31,076	)		(7.2	%)		(111,046	)		(127,099	)		(12.6	%)
General and administrative expense(2)		(6,372	)		(6,483	)		(1.7	%)		(24,767	)		(25,761	)		(3.9	%)
Joint venture income and minority interest expense(3)		6,253			(86	)		N/A			6,882			5,717			20.4	%
Depreciation expense		(41,378	)		(41,341	)		0.1	%		(162,896	)		(158,822	)		2.6	%
Gain (loss) on sale of land		(152	)		(138	)		10.1	%		13,519			4,479			201.8	%


Income from continuing operations		49,276			27,426			79.7	%		179,840			112,149			60.4	%

Discontinued operations: (4)
Income from discontinued operations					2,767			(100.0	%)		1,148			14,942			(92.3	%)
Gain on sale of communities					66,536			(100.0	%)		97,411			195,287			(50.1	%)

Total discontinued operations					69,303			(100.0	%)		98,559			210,229			(53.1	%)


Net income		49,276			96,729			(49.1	%)		278,399			322,378			(13.6	%)
Dividends attributable to preferred stock		(2,175	)		(2,175	)					(8,700	)		(8,700	)

Net income available to common stockholders	$	47,101		$	94,554			(50.2	%)	$	269,699		$	313,678			(14.0	%)

Net income per common share basic	$	0.63		$	1.29			(51.2	%)	$	3.64		$	4.30			(15.3	%)

Net income per common share diluted	$	0.62		$	1.26			(50.8	%)	$	3.57		$	4.21			(15.2	%)


(1)		Reflects costs incurred related to investment acquisition, investment management and abandoned pursuits. Abandoned pursuits are volatile and therefore may vary widely between periods.

(2)		Amount for the year ended December 31, 2005 includes the accrual of $1,500 in costs related to various litigation matters and separation costs in the amount of $2,100 due to the departure of a senior executive.

(3)		Amounts for the three months and year ended December 31, 2006 include $6,609 related to the sale of an unconsolidated community. Amounts for the years ended December 31, 2006 and 2005 include $433 and $6,252, respectively, related to gain on the sale of Rent.com to eBay.

(4)		Reflects net income for communities sold during the period from January 1, 2005 through December 31, 2006. The following table details income from discontinued operations as of the periods shown:


	Q4	Q4			Full Year			Full Year
	2006	2005			2006			2005
Rental income	$	$	4,504		$	1,787		$	26,867
Operating and other expenses			(1,520	)		(639	)		(8,684	)
Interest expense, net
Depreciation expense			(217	)					(3,241	)

Income from discontinued operations (5)	$	$	2,767		$	1,148		$	14,942


(5)		NOI for discontinued operations was zero and $1,148 for the three months and year ended December 31, 2006, respectively, all of which is related to assets sold.

Attachment 3

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


	December 31,			December 31,
	2006			2005
Real estate	$	5,662,191		$	5,259,425
Less accumulated depreciation		(1,099,834	)		(937,824	)

Net operating real estate		4,562,357			4,321,601

Construction in progress, including land		641,781			261,743
Land held for development		209,568			179,739
Operating real estate assets held for sale, net		64,351			182,705


Total real estate, net		5,478,057			4,945,788

Cash and cash equivalents		8,567			5,715
Cash in escrow		136,989			48,266
Resident security deposits		26,574			26,290
Other assets(1)		162,999			139,001


Total assets	$	5,813,186		$	5,165,060


Unsecured senior notes, net	$	2,153,078		$	1,809,182
Unsecured facility					66,800
Notes payable		672,508			458,035
Resident security deposits		38,803			35,544
Liabilities related to assets held for sale		42,985			38,352
Other liabilities		269,104			196,020


Total liabilities	$	3,176,478		$	2,603,933


Minority interest		5,270			19,464

Stockholders equity		2,631,438			2,541,663


Total liabilities and stockholders equity	$	5,813,186		$	5,165,060


⁽¹⁾		Other assets includes $1,558 and $1,215 relating to assets classified as held for sale as of December 31, 2006 and 2005, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes Established Communities(1)
December 31, 2006


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000s)
			Q406		Q405		% Change			Q406			Q405			% Change			Q406		Q405		% Change
Northeast
Boston, MA		2,471	$	1,649	$	1,640		0.5	%		95.4	%		96.1	%		(0.7	%)	$	11,658	$	11,681		(0.2	%)
Fairfield-New Haven, CT		1,998		2,082		1,953		6.6	%		96.5	%		96.8	%		(0.3	%)		12,044		11,326		6.3	%
New York, NY		1,606		2,252		2,140		5.2	%		96.3	%		96.8	%		(0.5	%)		10,453		9,987		4.7	%
Northern New Jersey		1,182		2,560		2,352		8.8	%		97.1	%		97.4	%		(0.3	%)		8,815		8,122		8.5	%
Long Island, NY		915		2,416		2,304		4.9	%		95.9	%		97.3	%		(1.4	%)		6,360		6,146		3.5	%
Central New Jersey		502		1,626		1,629		(0.2	%)		96.9	%		96.2	%		0.7	%		2,368		2,356		0.5	%

Northeast Average		8,674		2,065		1,970		4.8	%		96.2	%		96.8	%		(0.6	%)		51,698		49,618		4.2	%

Mid-Atlantic
Washington, DC		4,695		1,715		1,559		10.0	%		97.2	%		97.0	%		0.2	%		23,470		21,305		10.2	%
Baltimore, MD		718		1,244		1,148		8.4	%		95.1	%		95.9	%		(0.8	%)		2,549		2,369		7.6	%

Mid-Atlantic Average		5,413		1,652		1,504		9.8	%		97.0	%		96.9	%		0.1	%		26,019		23,674		9.9	%

Midwest
Chicago, IL		887		1,157		1,090		6.1	%		96.1	%		95.9	%		0.2	%		2,955		2,781		6.3	%

Midwest Average		887		1,157		1,090		6.1	%		96.1	%		95.9	%		0.2	%		2,955		2,781		6.3	%

Pacific Northwest
Seattle, WA		2,500		1,200		1,078		11.3	%		96.0	%		95.7	%		0.3	%		8,644		7,745		11.6	%

Pacific Northwest Average		2,500		1,200		1,078		11.3	%		96.0	%		95.7	%		0.3	%		8,644		7,745		11.6	%

Northern California
San Jose, CA		4,788		1,616		1,457		10.9	%		97.0	%		97.2	%		(0.2	%)		22,517		20,343		10.7	%
San Francisco, CA		2,015		1,915		1,744		9.8	%		96.1	%		97.3	%		(1.2	%)		11,121		10,241		8.6	%
Oakland-East Bay, CA		1,647		1,291		1,191		8.4	%		96.8	%		96.4	%		0.4	%		6,176		5,676		8.8	%

Northern California Average		8,450		1,624		1,474		10.2	%		96.7	%		97.1	%		(0.4	%)		39,814		36,260		9.8	%

Southern California
Los Angeles, CA		1,198		1,616		1,506		7.3	%		95.8	%		96.1	%		(0.3	%)		5,563		5,200		7.0	%
Orange County, CA		1,174		1,414		1,319		7.2	%		97.2	%		97.5	%		(0.3	%)		4,839		4,525		6.9	%
San Diego, CA		1,058		1,437		1,366		5.2	%		94.8	%		95.7	%		(0.9	%)		4,324		4,144		4.3	%

Southern California Average		3,430		1,491		1,399		6.6	%		96.0	%		96.4	%		(0.4	%)		14,726		13,869		6.2	%

Average/Total Established		29,354	$	1,693	$	1,572		7.7	%		96.5	%		96.8	%		(0.3	%)	$	143,856	$	133,947		7.4	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2005 such that a comparison of 2005 to 2006 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes Established Communities (1)
December 31, 2006


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000s)
			Q4 06		Q3 06		% Change			Q4 06			Q3 06			% Change			Q4 06		Q3 06		% Change
Northeast
Boston, MA		2,471	$	1,649	$	1,658		(0.5	%)		95.4	%		95.3	%		0.1	%	$	11,658	$	11,715		(0.5	%)
Fairfield-New Haven, CT		1,998		2,082		2,062		1.0	%		96.5	%		97.5	%		(1.0	%)		12,044		12,057		(0.1	%)
New York, NY		1,606		2,252		2,251		0.0	%		96.3	%		97.2	%		(0.9	%)		10,453		10,538		(0.8	%)
Northern New Jersey		1,182		2,560		2,525		1.4	%		97.1	%		97.4	%		(0.3	%)		8,815		8,722		1.1	%
Long Island, NY		915		2,416		2,401		0.6	%		95.9	%		97.5	%		(1.6	%)		6,360		6,428		(1.1	%)
Central New Jersey		502		1,626		1,668		(2.5	%)		96.9	%		96.6	%		0.3	%		2,368		2,421		(2.2	%)

Northeast Average		8,674		2,065		2,058		0.3	%		96.2	%		96.9	%		(0.7	%)		51,698		51,881		(0.4	%)


Mid-Atlantic
Washington, DC		4,695		1,715		1,684		1.8	%		97.2	%		97.0	%		0.2	%		23,470		23,011		2.0	%
Baltimore, MD		718		1,244		1,217		2.2	%		95.1	%		96.9	%		(1.8	%)		2,549		2,541		0.3	%

Mid-Atlantic Average		5,413		1,652		1,622		1.8	%		97.0	%		97.0	%		0.0	%		26,019		25,552		1.8	%


Midwest
Chicago, IL		887		1,157		1,151		0.5	%		96.1	%		96.7	%		(0.6	%)		2,955		2,956		0.0	%

Midwest Average		887		1,157		1,151		0.5	%		96.1	%		96.7	%		(0.6	%)		2,955		2,956		0.0	%


Pacific Northwest
Seattle, WA		2,500		1,200		1,162		3.3	%		96.0	%		96.8	%		(0.8	%)		8,644		8,438		2.4	%

Pacific Northwest Average		2,500		1,200		1,162		3.3	%		96.0	%		96.8	%		(0.8	%)		8,644		8,438		2.4	%


Northern California
San Jose, CA		4,788		1,616		1,576		2.5	%		97.0	%		96.8	%		0.2	%		22,517		21,926		2.7	%
San Francisco, CA		2,015		1,915		1,878		2.0	%		96.1	%		96.4	%		(0.3	%)		11,121		10,946		1.6	%
Oakland-East Bay, CA		1,647		1,291		1,265		2.1	%		96.8	%		96.1	%		0.7	%		6,176		6,005		2.8	%

Northern California Average		8,450		1,624		1,588		2.3	%		96.7	%		96.6	%		0.1	%		39,814		38,877		2.4	%


Southern California
Los Angeles, CA		1,198		1,616		1,592		1.5	%		95.8	%		96.3	%		(0.5	%)		5,563		5,512		0.9	%
Orange County, CA		1,174		1,414		1,388		1.9	%		97.2	%		97.2	%		0.0	%		4,839		4,753		1.8	%
San Diego, CA		1,058		1,437		1,419		1.3	%		94.8	%		96.4	%		(1.6	%)		4,324		4,341		(0.4	%)

Southern California Average		3,430		1,491		1,469		1.5	%		96.0	%		96.6	%		(0.6	%)		14,726		14,606		0.8	%


Average/Total Established		29,354	$	1,693	$	1,669		1.4	%		96.5	%		96.8	%		(0.3	%)	$	143,856	$	142,310		1.1	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2005 such that a comparison of 2005 to 2006 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

Attachment 6

AvalonBay Communities, Inc.
Full Year Revenue and Occupancy Changes Established Communities (1)
December 31, 2006


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000s)
			YTD 06		YTD 05		% Change			YTD 06			YTD 05			% Change			YTD 06		YTD 05		% Change
Northeast
Boston, MA		2,471	$	1,648	$	1,625		1.4	%		95.4	%		95.7	%		(0.3	%)	$	46,607	$	46,086		1.1	%
Fairfield-New Haven, CT		1,998		2,027		1,931		5.0	%		96.8	%		96.5	%		0.3	%		47,029		44,673		5.3	%
New York, NY		1,606		2,219		2,130		4.2	%		96.9	%		96.5	%		0.4	%		41,453		39,629		4.6	%
Northern New Jersey		1,182		2,488		2,278		9.2	%		97.1	%		96.8	%		0.3	%		34,257		31,298		9.5	%
Long Island, NY		915		2,377		2,278		4.3	%		96.8	%		97.1	%		(0.3	%)		25,252		24,288		4.0	%
Central New Jersey		502		1,644		1,618		1.6	%		96.1	%		95.7	%		0.4	%		9,520		9,331		2.0	%

Northeast Average		8,674		2,032		1,946		4.4	%		96.5	%		96.4	%		0.1	%		204,118		195,305		4.5	%


Mid-Atlantic
Washington, DC		4,695		1,659		1,539		7.8	%		96.8	%		95.4	%		1.4	%		90,431		82,826		9.2	%
Baltimore, MD		718		1,199		1,149		4.4	%		97.1	%		95.5	%		1.6	%		10,027		9,462		6.0	%

Mid-Atlantic Average		5,413		1,598		1,487		7.5	%		96.8	%		95.4	%		1.4	%		100,458		92,288		8.9	%


Midwest
Chicago, IL		887		1,132		1,092		3.7	%		95.3	%		95.7	%		(0.4	%)		11,478		11,113		3.3	%

Midwest Average		887		1,132		1,092		3.7	%		95.3	%		95.7	%		(0.4	%)		11,478		11,113		3.3	%


Pacific Northwest
Seattle, WA		2,500		1,144		1,049		9.1	%		96.3	%		95.3	%		1.0	%		33,063		30,041		10.1	%

Pacific Northwest Average		2,500		1,144		1,049		9.1	%		96.3	%		95.3	%		1.0	%		33,063		30,041		10.1	%


Northern California
San Jose, CA		4,788		1,549		1,437		7.8	%		96.9	%		96.2	%		0.7	%		86,229		79,440		8.5	%
San Francisco, CA		2,015		1,847		1,694		9.0	%		96.5	%		96.2	%		0.3	%		43,083		39,402		9.3	%
Oakland-East Bay, CA		1,647		1,246		1,178		5.8	%		96.6	%		95.9	%		0.7	%		23,791		22,343		6.5	%

Northern California Average		8,450		1,561		1,447		7.9	%		96.7	%		96.2	%		0.5	%		153,103		141,185		8.4	%


Southern California
Los Angeles, CA		1,198		1,577		1,456		8.3	%		95.8	%		96.2	%		(0.4	%)		21,734		20,145		7.9	%
Orange County, CA		1,174		1,375		1,284		7.1	%		96.9	%		96.7	%		0.2	%		18,775		17,505		7.3	%
San Diego, CA		1,058		1,403		1,349		4.0	%		95.7	%		95.3	%		0.4	%		17,042		16,318		4.4	%

Southern California Average		3,430		1,453		1,364		6.5	%		96.2	%		96.1	%		0.1	%		57,551		53,968		6.6	%


Average/Total Established		29,354	$	1,647	$	1,549		6.3	%		96.5	%		96.0	%		0.5	%	$	559,771	$	523,900		6.8	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2005 such that a comparison of 2005 to 2006 is meaningful.

(2)		Reflects the effect of concessions amortized over the average lease term.

Attachment 7

AvalonBay Communities, Inc. Capitalized Community and Corporate Expenditures and Expensed
Community Maintenance Costs

For the Year Ended December 31, 2006

(Dollars in thousands except per home data)


											Categorization of 2006 Add'l Capitalized Value ⁽⁴⁾														2006 Maintenance Expensed Per Home ⁽⁶⁾
											Acquisitions,											Non-Rev
							2006 Add'l				Construction,											Generating
	Apartment		Balance at		Balance at		Capitalized				Redevelopment			Revenue		Non-Rev						Capex			Carpet			Other
Current Communities ⁽¹⁾	Homes⁽²⁾		12-31-06⁽³⁾		12-31-05 ⁽³⁾		Value				& Dispositions			Generating⁽⁵⁾		Generating			Total			Per Home			Replacement			Maintenance			Total

Total Stabilized Communities		36,204	$	4,309,316	$	4,217,220	$	92,096		$		73,944	⁽⁷⁾	$	153	$	17,999		$	92,096		$	497		$	159		$	1,479		$	1,638


Development Communities ⁽⁸⁾		6,208		905,081		316,285		588,795				588,795								588,795						10			302			312

Dispositions						118,264		(118,264	)			(118,264	)							(118,264	)					3			33			36

Redevelopment Communities (8)		1,929		154,089		139,241		14,848				14,848								14,848						41			1,044			1,085

Corporate				35,766		32,169		3,597				2,251	⁽⁹⁾				1,346	⁽⁹⁾		3,597

Total		44,341	$	5,404,252	$	4,823,179	$	581,072			$	561,574		$	153	$	19,345		$	581,072		$	406	⁽¹⁰⁾	$	133	⁽¹¹⁾	$	1,295	⁽¹¹⁾	$	1,428	⁽¹¹⁾


(1)		For the purpose of this table, Current Communities excludes communities held by unconsolidated real estate joint ventures.

(2)		Apartment homes as of 12/31/06; 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 revenue generating or expense saving expenditures, such as water saving devices and submetering equipment.

(6)		Other maintenance includes maintenance, landscaping, redecorating and appliance replacement costs.

(7)		Includes the acquisition of a joint venture partners interest in a community.

(8)		Represents communities that were under construction/reconstruction during 2006, including communities where construction/reconstruction has been completed.

(9)		Represents primarily computer equipment and leasehold improvements related to corporate offices.

(10)		Total non-revenue generating capitalized costs per home excludes corporate capitalized costs.

(11)		Total 2006 maintenance expensed per home excludes maintenance costs related to Dispositions.

Attachment 8

AvalonBay Communities, Inc.

Summary of Development and Redevelopment Activity (1) as of December 31, 2006


		Number		Number		Total
		of		of		Capital Cost (2)
		Communities		Homes		(millions)
Portfolio Additions:
2006 Annual Completions
Development			6		1,368	$	375.2
Redevelopment	(3)		2		506		10.1

Total Additions			8		1,874	$	385.3


2005 Annual Completions
Development			7		1,971	$	408.2
Redevelopment			3		1,094		31.0

Total Additions			10		3,065	$	439.2


Pipeline Activity:	(4)

Currently Under Construction
Development			17		5,153	$	1,323.3
Redevelopment	(3)		6		2,381		42.1

Subtotal			23		7,534	$	1,365.4


Planning
Development Rights			54		14,185	$	3,581.0

Total Pipeline			77		21,719	$	4,946.4


(1)		Represents activity for consolidated and unconsolidated entities.

(2)		See Attachment #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		Represents only cost of redevelopment activity, does not include original acquisition cost.

(4)		Information represents projections and estimates.

		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 2006.

Attachment 9

AvalonBay Communities, Inc.
Development Communities as of December 31, 2006


	Percentage						Total										Avg
	Ownership			# of			Capital		Schedule								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)			(1) (5)
																	Inclusive of
																	Concessions
																	See Attachment #15
Under Construction:
1. Avalon Wilshire		100	%		123		$	46.6		Q1 2005		Q1 2007		Q2 2007		Q4 2007	$	2,520		N/A			N/A			N/A			N/A
Los Angeles, CA
2. Avalon Chestnut Hill		100	%		204			60.6		Q2 2005		Q3 2006		Q1 2007		Q3 2007		2,410		100.0	%		52.5	%		44.6	%		13.3	%
Chestnut Hill, MA
3. Avalon at Decoverly II		100	%		196			30.5		Q3 2005		Q2 2006		Q1 2007		Q3 2007		1,525		100.0	%		60.2	%		56.6	%		36.7	%
Rockville, MD
4. Avalon Lyndhurst (6)		100	%		328			78.8		Q3 2005		Q4 2006		Q4 2007		Q2 2008		2,310		28.0	%		24.1	%		14.0	%		2.1	%
Lyndhurst, NJ
5. Avalon Shrewsbury		100	%		251			36.1		Q3 2005		Q2 2006		Q2 2007		Q4 2007		1,365		74.5	%		71.7	%		58.2	%		44.9	%
Shrewsbury, MA
6. Avalon Riverview North		100	%		602			175.6		Q3 2005		Q3 2007		Q3 2008		Q1 2009		2,695		N/A			N/A			N/A			N/A
New York, NY
7. Avalon at Glen Cove North		100	%		111			42.4		Q4 2005		Q2 2007		Q3 2007		Q1 2008		2,300		N/A			N/A			N/A			N/A
Glen Cove, NY
8. Avalon Danvers		100	%		433			84.8		Q4 2005		Q1 2007		Q2 2008		Q4 2008		1,660		11.1	%		2.3	%		0.5	%		N/A
Danvers, MA
9. Avalon Woburn		100	%		446			81.3		Q4 2005		Q3 2006		Q1 2008		Q3 2008		1,490		35.0	%		30.0	%		23.8	%		14.0	%
Woburn, MA
10. Avalon on the Sound II		100	%		588			184.2		Q1 2006		Q3 2007		Q3 2008		Q1 2009		2,420		N/A			N/A			N/A			N/A
New Rochelle, NY
11. Avalon Meydenbauer		100	%		368			84.3		Q1 2006		Q4 2007		Q3 2008		Q1 2009		1,625		N/A			N/A			N/A			N/A
Bellevue, WA
12. Avalon at Dublin Station I		100	%		305			85.8		Q2 2006		Q3 2007		Q2 2008		Q4 2008		1,995		N/A			N/A			N/A			N/A
Dublin, CA
13. Avalon at Lexington Hills		100	%		387			86.2		Q2 2006		Q2 2007		Q3 2008		Q1 2009		2,105		N/A			N/A			N/A			N/A
Lexington, MA
14. Avalon Bowery Place II (7)		100	%		90			61.9		Q3 2006		Q4 2007		Q1 2008		Q2 2008		3,490		N/A			N/A			N/A			N/A
New York, NY
15. Avalon Encino		100	%		131			61.5		Q3 2006		Q3 2008		Q4 2008		Q1 2009		2,650		N/A			N/A			N/A			N/A
Los Angeles, CA
16. Avalon Canoga Park		100	%		210			53.9		Q4 2006		Q1 2008		Q2 2008		Q4 2008		2,020		N/A			N/A			N/A			N/A
Canoga Park, CA
17. Avalon Acton (7)		100	%		380			68.8		Q4 2006		Q1 2008		Q4 2008		Q2 2009		1,470		N/A			N/A			N/A			N/A
Acton, MA

Subtotal/Weighted Average					5,153		$	1,323.3									$	2,050

Completed this Quarter:
1. Avalon at Mission Bay North II (8)		25	%		313			108.2		Q1 2005		Q3 2006		Q4 2006		Q3 2007		3,130		100.0	%		60.1	%		57.5	%		39.1	%
San Francisco, CA
2. Avalon Bowery Place I (9)		100	%		206			98.5		Q4 2005		Q4 2006		Q4 2006		Q2 2007		3,770		100.0	%		82.5	%		72.8	%		32.2	%
New York, NY

Subtotal/Weighted Average					519		$	206.7									$	3,385

Total/Weighted Average					5,672		$	1,530.0									$	2,170


Weighted Average Projected NOI
as a % of Total Capital Cost (1) (10)				6.8	%	Inclusive of Concessions See Attachment #15


Non-Stabilized Development Communities: (11)				% Economic			Asset Cost Basis, Non-Stabilized Development						Source
				Occ
Prior Quarter Completions:					(1) (5)		Capital Cost, Prior Quarter Completions			$	48.1		Att. 9
Avalon Camarillo, Camarillo, CA	249	$	48.1				Capital Cost, Current Completions				125.6		Att. 9 (less JV partner share)
							Capital Cost, Under Construction				1,323.3		Att. 9
							Less: Remaining to Invest, Under Construction
Total	249	$	48.1		98.0	%

							Total Remaining to Invest	919.4					Att. 11
							Capital Cost, Projected Q1 2007 Starts	(279.9	)				Att. 11, Footnote 5

											(639.5	)

							Total Asset Cost Basis, Non-Stabilized Development			$	857.5

Q4 2006 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $0.1 million. See Attachment #15. Total Asset Cost Basis, Non-Stablized Develpment [$857.5]


(1)		See Attachment #15 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 26, 2007.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of January 26, 2007.

(4)		Physical occupancy based on apartment homes occupied as of January 26, 2007.

(5)		Represents Economic Occupancy for the fourth quarter of 2006.

(6)		The remediation of the Companys Avalon Lyndhurst development site, as discussed in the Companys second quarter 2006 Earnings Release, is substantially complete. Net cost associated with this remediation effort after considering insurance proceeds received to date, including costs associated with construction delays, is expected to total approximately $7.5 million. The Company is pursuing the recovery of these additional costs through its insurance as well as from the third parties involved, but any additional recoverable amounts are not currently estimable. The Total Capital Cost and yield cited above do not reflect the potential impact of these additional net costs.

(7)		This community is being financed in part by third-party tax-exempt debt.

(8)		The community was developed under a joint venture structure and has been financed in part by a construction loan. The Companys portion of the Total Capital Cost of this joint venture is projected to be $27.0 million including community-based debt.

(9)		This community was formerly known as Avalon Chrystie Place II, and is financed in part by third-party tax-exempt debt. The Total Capital Cost for this community includes the projected costs related to this financing and the benefit of available low-income housing tax credits.

(10)		The Weighted Average calculation is based on the Companys pro rata share of the Total Capital Cost for each community.

(11)		Represents Development Communities completed in the current quarter and prior quarters that had not achieved Stabilized Operations for the entire current quarter. Estimates are 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 2006.

Attachment 10

AvalonBay Communities, Inc.
Redevelopment Communities as of December 31, 2006


						Cost (millions)					Schedule								Avg		Number of Homes
				# of		Pre-		Total											Rent				Out of
	Percentage			Apt		Redevelopment		Capital			Acquisition /						Restabilized		Per		Completed		Service
	Ownership			Homes		Capital Cost		Cost (1)(2)			Completion		Start		Complete		Ops (2)		Home (2)		to date		@ 12/31/06
																			Inclusive of
																			Concessions
																			See Attachment #15
Under Redevelopment:
Stabilized (3)
1. Avalon Arlington Heights (4) Arlington Heights, IL		100	%		409	$	50.2	$	57.1			Q4 2000		Q1 2006		Q1 2007		Q3 2007	$	1,315		409

2. Avalon Walk I and II (5) Hamden, CT		100	%		764		59.4		71.2			Q3 1992		Q1 2006		Q4 2007		Q2 2008		1,360		439		19
												Q3 1994
3. Avalon at AutumnWoods Fairfax, VA		100	%		420		31.2		38.3			Q4 1996		Q3 2006		Q3 2008		Q1 2009		1,395		121		10

Subtotal					1,593	$	140.8	$	166.6										$	1,355		969		29


Acquisitions (3)
1. Avalon Redmond (6) Redmond, WA		15	%		400		49.2		56.7			Q4 2004		Q2 2006		Q4 2007		Q2 2008		1,280		211		10
2. Civic Center Place Norwalk, CA		15	%		192		38.1		43.5			Q4 2005		Q4 2006		Q2 2008		Q4 2008		1,685		15		6
3. Avalon at Poplar Creek Schaumburg, IL		15	%		196		25.2		28.6			Q2 2006		Q4 2006		Q1 2008		Q3 2008		1,165		33		4

Subtotal					788	$	112.5	$	128.8										$	1,355		259		20


Total/Weighted Average					2,381	$	253.3	$	295.4										$	1,355		1,228		49


Weighted Average Projected NOI as a % of Total Capital Cost (2)									10.0	%	Inclusive of Concessions See Attachment #15



(1)		Inclusive of acquisition cost.

(2)		See Attachment #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		Stabilized Redevelopment Communities have been held for one year or more and have achieved Stabilized Operations before beginning redevelopment. Acquisition redevelopments are those communities that begin redevelopment within one year of acquisition.

(4)		This community was formerly known as 200 Arlington Place.

(5)		This community was developed by a predecessor of the Company. Phase I was completed in Q3 1992 and Phase II was completed in Q3 1994.

(6)		This community, formerly known as Ravenswood at the Park, was acquired in Q4 2004 and was transferred to a subsidiary of the Companys Investment Management Fund (the Fund) in Q1 2006, reducing the Companys indirect equity interest in the community to 15%.

		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 2006.

Attachment 11

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of December 31, 2006
(Dollars in Thousands)

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 2005 Actual	1,480	$	347,839	$	219,046	$	881,012	$	377,320


2006 Actual:
Quarter 1	267	$	113,125	$	47,014	$	952,410	$	468,401
Quarter 2	302		155,381		59,948		915,400		570,875
Quarter 3	509		174,587		86,515		1,007,188		593,160
Quarter 4	449		209,735		117,678		919,358		626,034

Total 2006 Actual	1,527	$	652,828	$	311,155


2007 Projected:
Quarter 1	591	$	204,726	$	134,709	$	714,632	$	681,799
Quarter 2	678		159,161		166,768		555,470		690,195
Quarter 3	621		151,150		165,274		404,321		674,389
Quarter 4	730		135,944		210,737		277,135		526,580

Total 2007 Projected	2,620	$	650,981	$	677,488

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 2005 Actual		$	8,972	$	13,456	$	7,877


2006 Actual:
Quarter 1	32	$	3,433	$	18,443	$	8,502
Quarter 2	60		3,474		21,760		10,206
Quarter 3	89		4,258		18,549		14,763
Quarter 4	60		4,378		14,991		17,602

Total 2006 Actual		$	15,543


2007 Projected:
Quarter 1	58	$	4,493	$	10,497	$	11,663
Quarter 2	95		3,782		6,715		12,144
Quarter 3	107		3,262		3,453		10,622
Quarter 4	42		1,398		2,055		4,192

Total 2007 Projected		$	12,935


(1)		Data is presented for all communities currently under development or redevelopment and those communities for which development or redevelopment 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 #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		Represents projected Total Capital Cost for 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 development or redevelopment and those for which development or redevelopment is expected to begin within the next 90 days. Remaining to invest for Q4 2006 includes $279.9 million attributed to two anticipated Q1 2007 development starts and $1.2 million related to two anticipated Q1 2007 redevelopment starts.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q4 2006 includes $1.9 million related to three unconsolidated investments in the Fund, 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 2006.

Attachment 12

AvalonBay Communities, Inc.
Future Development as of December 31, 2006

DEVELOPMENT RIGHTS (1)


			Estimated		Total
			Number		Capital Cost (1)
Location of Development Right			of Homes		(millions)
1.	White Plains, NY	(2)		393		155
2.	New York, NY			296		125
3.	Tinton Falls, NJ			216		41
4.	Coram, NY	(2)		200		47
5.	Kirkland, WA Phase II	(2)		176		53
6.	Hingham, MA	(2)		235		44
7.	Northborough, MA			350		60
8.	Wilton, CT	(2)		100		24
9.	Union City, CA	(2)		438		120
10.	Andover, MA	(2)		115		21
11.	Norwalk, CT			319		83
12.	Sharon, MA			156		26
13.	Brooklyn, NY			628		317
14.	Pleasant Hill, CA	(4)		416		153
15.	Milford, CT	(2)		284		45
16.	West Haven, CT			170		23
17.	Cohasset, MA	(2)		200		38
18.	Quincy, MA	(2)		146		24
19.	West Long Branch, NJ	(3)		216		36
20.	Plymouth, MA Phase II			81		17
21.	Shelton, CT			302		49
22.	Shelton, CT II			171		34
23.	Roselle Park, NJ			340		75
24.	Wanaque, NJ			210		45
25.	San Francisco, CA			152		40
26.	North Bergen, NJ	(3)		156		48
27.	Howell, NJ			265		42
28.	Gaithersburg, MD			254		41
29.	Highland Park, NJ			285		67
30.	Dublin, CA Phase II			200		52
31.	Dublin, CA Phase III			205		53
32.	Canoga Park, CA			297		85
33.	New York, NY II			680		261
34.	Camarillo, CA			376		55
35.	Bloomingdale, NJ			173		38
36.	Greenburgh, NY Phase II			444		112
37.	Irvine, CA	(2)		280		76
38.	Stratford, CT	(2)		146		23
39.	Hackensack, NJ			210		47
40.	Oyster Bay, NY	(2)		150		42
41.	Saddle Brook, NJ			300		55
42.	Oakland, NJ			308		62
43.	Randolph, NJ			128		31
44.	Irvine, CA II			180		57
45.	Garden City, NY			160		58
46.	Alexandria, VA	(2)		283		73
47.	Tysons Corner, VA	(2)		439		101
48.	Yonkers, NY			400		88
49.	Plainview, NY			160		38
50.	Wheaton, MD	(2)		320		56
51.	Yaphank, NY	(2)		343		57
52.	Camarillo, CA II			233		57
53.	Rockville, MD	(2)		240		46
54.	Winchester, MA			260		65



	Total			14,185	$	3,581


(1)		See Attachment #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

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

(3)		This Development Right is subject to a joint venture arrangement.

(4)		This Development Right is subject to a joint venture arrangement. In connection with the pursuit of this Development Right, $125 million in bond financing was issued and immediately invested in a guaranteed investment contract (GIC) administered by a trustee. The Company does not have any equity or economic interest in the joint venture entity at this time, but has an option to make a capital contribution to the joint venture entity for a 99% general partner interest. Should the Company exercise this option, the bond proceeds will be released from the GIC and used for future construction of the Development Right. Should the Company decide not to exercise this option, the bond proceeds will be redeemed to the issuer.

Attachment 13

AvalonBay Communities, Inc.
Unconsolidated Real Estate Investments (1) as of December 31, 2006
(Dollar in Thousands)


									AVB											AVBs
					# of		Total		Book		Outstanding Debt									Share of
	Unconsolidated	Percentage			Apt		Capital		Value						Interest			Maturity		Partnership
	Real Estate Investments	Ownership			Homes		Cost (2)		Investment (3)		Amount		Type		Rate			Date		Debt
	AvalonBay Value Added Fund, LP
1.	Avalon at Redondo Beach		N/A			105	$	24,408		N/A	$	16,765	Fixed			4.84	%	Oct 2011		$	2,548
	Los Angeles, CA
2.	Avalon Lakeside		N/A			204		18,058		N/A				N/A		N/A			N/A
	Chicago, IL
3.	Avalon Columbia		N/A			170		29,249		N/A		16,575	Fixed			5.25	%	Apr 2012			2,519
	Baltimore, MD
4.	Avalon Redmond		N/A			400		53,283		N/A		31,500	Fixed			4.96	%	Jul 2012			4,788
	Seattle, WA
5.	Fuller Martel		N/A			82		18,135		N/A		11,500	Fixed			5.41	%	Feb 2014			1,748
	Los Angeles, CA
6.	Avalon at Poplar Creek		N/A			196		25,362		N/A		16,500	Fixed			4.83	%	Oct 2012			2,508
	Chicago, IL
7.	Civic Center Place (4)		N/A			192		38,269		N/A		23,806	Fixed			5.29	%	Aug 2013			3,619
	Norwalk, CA
8.	Paseo Park		N/A			134		19,858		N/A		11,800	Fixed			5.74	%	Nov 2013			1,794
	Fremont, CA
9.	Aurora at Yerba Buena		N/A			160		66,409		N/A		41,500	Fixed			5.88	%	Mar 2014			6,308
	San Francisco, CA
10.	Avalon at Aberdeen Station		N/A			290		57,936		N/A		34,456	Fixed			5.73	%	Sep 2013			5,237
	Aberdeen, NJ
11.	The Springs		N/A			320		47,582		N/A		26,000	Fixed			6.06	%	Oct 2014			3,952
	Corona, CA
12.	The Covington		N/A			256		32,275		N/A		17,243	Fixed			5.43	%	Jan 2014			2,621
	Lombard, IL
13.	Cedar Valley (5)		N/A			156		20,751		N/A		12,000	Variable			6.33	%	Feb 2007			1,824
	Columbia, MD
	Fund corporate debt (6)		N/A			N/A		N/A		N/A		57,400	Variable			6.10	%	Jan 2008			8,725

			15.2	%		2,665	$	451,575	$	74,047	$	317,045								$	48,191	(7)


	Other Operating Joint Ventures
1.	Avalon Grove		(8	)		402		51,691		7,864				N/A		N/A			N/A
	Stamford, CT
2.	Avalon Chrystie Place I (8)		20.0	%		361		129,746		27,254		117,000	Variable			3.65	%	Nov 2036			23,400
	New York, NY

						763	$	181,437	$	35,118	$	117,000								$	23,400


	Other Development Joint Ventures
1.	Avalon at Mission Bay North II (8)(9)		25.0	%		313	$	108,200	$	24,335	$	76,739	Variable			6.85	%	Sep 2008(10)		$	19,185
	San Francisco, CA

						313	$	108,200	$	24,335	$	76,739								$	19,185

						3,741	$	741,212	$	133,500	$	510,784								$	90,776


(1)		Schedule does not include one community (Avalon Del Rey) that completed development in the third quarter of 2006 under a joint venture arrangement. AVB owns 30% of this community, however due to the Companys continuing involvement, it is consolidated for financial reporting purposes.

(2)		See Attachment #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		These unconsolidated real estate investments are accounted for under the equity method of accounting. AVB Book Value Investment represents the Companys recorded equity investment plus the Companys pro rata share of outstanding debt.

(4)		This communitys debt is a combination of two separate fixed rate loans which both mature in August 2013. The first loan totals $18,154 at a 5.04% interest rate and was assumed by the Fund upon purchase of this community. The second loan was procured in connection with the acquisition in the amount of $5,652 at a 6.08% interest rate. The rate listed in the table above represents a weighted average interest rate.

(5)		At December 2006, the outstanding debt for this community is a bridge loan, which we expect will be converted to permanent financing in the first quarter of 2007 under an existing rate lock agreement at a 5.68% variable funding rate.

(6)		Amounts are outstanding under the Funds unsecured credit facility.

(7)		The Company has not guaranteed the debt of the Fund and bears no responsibility for the repayment.

(8)		After the venture makes certain threshold distributions to the third-party partner, the Company generally receives 50% of all further distributions.

(9)		Total Capital Cost for this community represents the capitalized costs incurred and projected to incur as part of the development completion, and is not the gross real estate cost as recorded by the joint venture as of December 31, 2006.

(10)		The maturity date as reflected on this attachment may be extended to September 2010 upon exercise of two one-year extension options.

Attachment 14

AvalonBay Communities, Inc.

Summary of Disposition Activity(1) as of December 31, 2006
(Dollars in thousands)

Weighted

Average

Accumulated

Weighted Average

Number of

Holding

Gross Sales

Depreciation

Economic

Initial Year

Weighted Average

Communities Sold

Period (2)

Price

GAAP Gain

and Other

Gain (3)

Mkt. Cap Rate (2)(3)

Unleveraged IRR (2)(3)

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 (4)

460,600

184,438

52,613

131,825

6.3

15.3

2004:

5 Communities, 1 Land Parcel

250,977

122,425

19,320

103,105

4.8

16.8

2005:

7 Communities, 1 Office Building, 3 Land Parcels (5)

382,720

199,766

14,929

184,838

3.8

18.0

2006:

4 Communities, 3 Land Parcels (6)

281,485

117,539

21,699

95,840

4.6

15.2

1998 - 2006 Total

6.2

2,345,121

849,055

194,496

654,560

6.2

15.5


(1)		Activity excludes dispositions to joint venture entities in which the Company retains an economic interest.

(2)		For purposes of this attachment, land sales and the disposition of an office building are not included in the calculation of Weighted Average Holding Period, Weighted Average Initial Year Market Cap Rate, or Weighted Average Unleveraged IRR.

(3)		See Attachment #15 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		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.

(5)		2005 GAAP gain includes the recovery of an impairment loss in the amount of $3,000 recorded in 2002 related to one of the land parcels sold in 2005. This loss was recorded to reflect the land at fair value based on its entitlement status at the time when it was determined planned for disposition.

(6)		2006 GAAP gain, for purposes of this attachment, includes $6,609 related to the sale of a community in which the Company held a 25% equity interest.

Attachment 15

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
	2006			2005			2006			2005
Net income	$	49,276		$	96,729		$	278,399		$	322,378
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(8,700	)		(8,700	)
Depreciation real estate assets, including discontinued operations and joint venture adjustments		41,962			41,799			164,749			162,019
Minority interest expense, including discontinued operations		95			292			391			1,363
Gain on sale of unconsolidated entities holding previously depreciated real estate assets		(6,609	)					(6,609	)
Gain on sale of previously depreciated real estate assets					(66,536	)		(97,411	)		(195,287	)

FFO attributable to common stockholders	$	82,549		$	70,109		$	330,819		$	281,773


Average shares outstanding diluted		75,897,674			75,132,561			75,586,898			74,759,318

EPS diluted	$	0.62		$	1.26		$	3.57		$	4.21

FFO per common share diluted	$	1.09		$	0.93		$	4.38	(1)	$	3.77	(2)


(1)		FFO per common share diluted for the year ended December 31, 2006 includes $0.18 per share of non-routine items related to the gains on sale of three land parcels and the final installment from the sale of a technology venture.

(2)		FFO per common share diluted for the year ended December 31, 2005 includes the following non-routine items, totaling $0.11 per share:

- Gains on the sale of two land parcels;

- Gain on the sale of a technology venture; and

- Income related to the impact of the development by a third-party of a hotel adjacent to one of the Companys existing communities.

The above items were partially offset by:

- Separation costs due to the departure of a senior executive; and

- Accrual of costs related to various litigation matters.

Attachment 15 (continued)

Projected FFO, as provided within this release in the Companys outlook, is calculated on a basis consistent with historical FFO, and is therefore considered to be an appropriate supplemental measure to projected net income from projected operating performance. A reconciliation of the range provided for Projected FFO per share (diluted) for the first quarter and full year 2007 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) Q1 07	$	0.59		$	0.63
Projected depreciation (real estate related)		0.54			0.54
Projected gain on sale of operating communities

Projected FFO per share (diluted) Q1 07	$	1.13		$	1.17


Projected EPS (diluted) Full Year 2007	$	3.66		$	3.90
Projected depreciation (real estate related)		2.10			2.34
Projected gain on sale of operating communities		(1.08	)		(1.32	)

Projected FFO per share (diluted) Full Year 2007	$	4.68		$	4.92

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excludes corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management, net interest expense, general and administrative expense, joint venture income, minority interest expense, depreciation expense, gain on sale of real estate assets 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 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 15 (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			Full Year			Full Year
	2006			2005			2006			2005
Net income	$	49,276		$	96,729		$	278,399		$	322,378
Indirect operating expenses, net of corporate income		7,903			6,943			28,809			26,675
Investments and investment management		1,773			1,460			7,033			4,834
Interest expense, net		28,851			31,076			111,046			127,099
General and administrative expense		6,372			6,483			24,767			25,761
Joint venture income and minority interest		(6,253	)		86			(6,882	)		(5,717	)
Depreciation expense		41,378			41,341			162,896			158,822
(Gain)/loss on sale of real estate assets		152			(66,398	)		(110,930	)		(199,766	)
Income from discontinued operations					(2,767	)		(1,148	)		(14,942	)

NOI from continuing operations	$	129,452		$	114,953		$	493,990		$	445,144


Established:
Northeast	$	35,190		$	33,220		$	137,379		$	130,733
Mid-Atlantic		19,212			16,665			72,033			64,050
Midwest		1,833			1,613			7,121			6,627
Pacific NW		5,789			4,895			21,819			19,312
No. California		28,092			24,626			107,135			96,023
So. California		10,618			9,780			41,572			38,098

Total Established		100,734			90,799			387,059			354,843

Other Stabilized		15,657			14,416			59,432			53,935
Development/Redevelopment		13,061			9,738			47,499			36,366

NOI from continuing operations	$	129,452		$	114,953		$	493,990		$	445,144

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2005 through December 31, 2006). A reconciliation of NOI from communities sold to net income for these communities is as follows (dollars in thousands):


	Q4	Q4		Full Year		Full Year
	2006	2005		2006		2005
Income from discontinued operations	$	$	2,767	$	1,148	$	14,942
Interest expense, net
Depreciation expense			217				3,241

NOI from discontinued operations	$	$	2,984	$	1,148	$	18,183


NOI from assets sold	$	$	2,984	$	1,148	$	18,183
NOI from assets held for sale

NOI from discontinued operations	$	$	2,984	$	1,148	$	18,183

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 (or as of the date of the buyers valuation in the case of dispositions), 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

Attachment 15 (continued)

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.

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 when the assets are complete and achieve stabilized occupancy (before allocation of any corporate-level property management overhead, general and administrative costs or interest expense). However, in this release the Company has not given a projection of NOI on a company-wide basis. Given the different dates and fiscal years for which NOI 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 may not be meaningful. Projected NOI of these communities is not a projection of the Companys overall financial performance or cash flow. There can be no assurance that the communities under development or redevelopment will achieve the Projected NOI as described in this release.

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 to help investors 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. 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			Full Year			Full Year
	2006			2005			2006			2005
Rental revenue (GAAP basis)	$	143,856		$	133,947		$	559,771		$	523,900
Concessions amortized		1,539			4,524			11,082			20,010
Concessions granted		(1,159	)		(2,822	)		(5,796	)		(17,399	)

Rental revenue (with Concessions on a Cash Basis)	$	144,236		$	135,649		$	565,057		$	526,511


% change GAAP revenue		7.4	%					6.8	%
% change cash revenue		6.3	%					7.3	%

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 for both the year ended December 31, 2006 as well as prior years activities is presented on Attachment 14.

Interest Coverage is calculated by the Company as EBITDA from continuing operations, excluding land gains, divided by the sum of interest expense, net, and preferred dividends. Interest Coverage is presented by the Company because it provides rating agencies and investors an additional means of comparing our ability to service debt obligations to that of other companies. EBITDA is defined by the Company as net income before interest income and expense, income taxes, depreciation and amortization.

Attachment 15 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the fourth quarter of 2006 are as follows (dollars in thousands):


Net income	$	49,276
Interest expense, net		28,851
Depreciation expense		41,378


EBITDA	$	119,505


EBITDA from continuing operations	$	119,505
EBITDA from discontinued operations


EBITDA	$	119,505


EBITDA from continuing operations	$	119,505
Land loss		152

EBITDA from continuing operations, excluding land loss	$	119,657


Interest expense, net	$	28,851
Dividends attributable to preferred stock		2,175

Interest charges	$	31,026


Interest coverage		3.9

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. For Redevelopment Communities, Total Capital Cost excludes costs incurred prior to the start of redevelopment when indicated. 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. For joint ventures not in construction, Total Capital Cost is equal to gross real estate cost.

Initial Year Market Cap Rate is defined by the Company as Projected NOI of a single community for the first 12 months of operations (assuming no repositioning), less estimates for non-routine allowance of approximately $200 $300 per apartment home, divided by the gross sales price for the community. The gross sales price is adjusted for transaction costs and deferred maintenance in determining the Initial Year Market Cap Rate for acquisitions. Projected NOI, as referred to above, represents managements estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation, amortization and extraordinary items. For this purpose, managements projection of operating expenses for the community includes a management fee of 3.0% 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 and 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 (for dispositions) and on the expected total investment in each community (for acquisitions).

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.

Attachment 15 (continued)

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.

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, 2006 is as follows (dollars in thousands):


Total debt	$	2,828,508

Common stock		9,710,622
Preferred stock		100,000
Operating partnership units		18,851
Total debt		2,828,508

Total market capitalization		12,657,981


Debt as % of capitalization		22.3	%

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.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by either outstanding secured debt or land leases (excluding land leases with purchase options that were put in place for governmental incentives or tax abatements) 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, 2006 is as follows (dollars in thousands):


NOI for Established Communities	$	387,059
NOI for Other Stabilized Communities		59,432
NOI for Development/Redevelopment Communities		47,499
NOI for discontinued operations		1,148

Total NOI generated by real estate assets	$	495,138
NOI from encumbered assets		86,591

NOI from unencumbered assets	$	408,547


Unencumbered NOI		82.5	%

Attachment 15 (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 2006, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2005 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.

Average Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted average number of occupied apartment homes.

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.

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.

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.

Development Rights are development opportunities in the early phase of the development process for which the Company either has an option to acquire land or enter into a leasehold interest, for which the Company is the buyer under a long-term conditional contract to purchase land or where the Company owns land to develop a new community. The Company capitalizes related predevelopment costs incurred in pursuit of new developments for which future development is probable.

Form: 8-K

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