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

Exhibit 99.2

AvalonBay Communities, Inc.

For Immediate News Release
October 31, 2007

AVALONBAY COMMUNITIES, INC. ANNOUNCES
THIRD QUARTER 2007 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended September 30, 2007 was $126,594,000. This resulted in Earnings per Share diluted (EPS) of $1.58 for the quarter ended September 30, 2007, compared to $0.53 for the comparable period of 2006, a per share increase of 198.1%. This increase is primarily attributable to gains from the sale of communities and growth in income from existing and newly developed communities.

For the nine months ended September 30, 2007, EPS was $2.74 compared to $2.83 for the comparable period of 2006, a per share decrease of 3.2%. This decrease is primarily attributable to a decrease in gains from the sale of land and communities in 2007 as compared to 2006, partially offset by growth in income from existing and newly developed communities in 2007. Results discussed in this release for both 2007 and 2006 include non-cash charges associated with our change in the accounting for certain land leases.

Funds from Operations attributable to common stockholders diluted (FFO) for the quarter ended September 30, 2007 was $95,302,000, or $1.19 per share, compared to $81,261,000, or $1.07 per share for the comparable period of 2006. FFO per share increased 11.2%, due primarily to contributions from improved community operating results and newly developed communities.

FFO per share for the nine months ended September 30, 2007 increased by 9.1% to $3.47 from $3.18 for the comparable period of 2006. FFO per share for the nine months ended September 30, 2007 and September 30, 2006, includes $0.01 and $0.18 per share, respectively, related to the sale of land parcels. Adjusting for these land sales in both years, FFO per share increased 15.3%, driven primarily by improved community operating results and contributions from newly developed communities.

Commenting on the Companys results, Bryce Blair, Chairman and CEO, said Same store revenue and NOI growth remain above long-term trends and reflect the continued healthy apartment fundamentals in our markets. The health of our markets and the strength of our balance sheet position us well for opportunities and challenges heading into next year.

Operating Results for the Quarter Ended September 30, 2007 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $22,784,000, or 12.1% to $210,451,000. For Established Communities, rental revenue increased 5.0%, comprised of an increase in Average Rental Rates of 5.2% and a decrease in Economic Occupancy of 0.2%. As a result, total revenue for Established Communities increased $7,951,000 to $165,035,000. Operating expenses for Established Communities increased $604,000, or 1.1% to $53,538,000. Accordingly, Net Operating Income (NOI) for Established Communities increased by $7,347,000, or 7.1%, to $111,497,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the third quarter of 2006 to the third quarter of 2007:

3Q 07 Compared to 3Q 06


	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		2.8	%		2.6	%		2.9	%		43.0	%
Mid-Atlantic		5.3	%		1.7	%		7.7	%		15.6	%
Midwest		2.0	%		11.8	%		(3.8	%)		2.0	%
Pacific NW		11.0	%		2.4	%		15.7	%		4.6	%
No. California		8.3	%		(3.1	%)		13.4	%		22.6	%
So. California		4.0	%		0.2	%		5.7	%		12.2	%

Total		5.0	%		1.1	%		7.1	%		100.0	%


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

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:


	3Q 07 vs 3Q 06
Rental Revenue Change with Concessions on a GAAP Basis		5.0	%

Rental Revenue Change with Concessions on a Cash Basis		4.3	%

Operating Results for the Nine Months Ended September 30, 2007 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $65,409,000, or 12.0% to $610,696,000. For Established Communities, rental revenue increased 6.0%, comprised of an increase in Average Rental Rates of 6.3% and a decrease in Economic Occupancy of 0.3%. As a result, total revenue for Established Communities increased $27,412,000 to $487,066,000, and operating expenses for Established Communities increased $2,814,000 or 1.8% to $156,102,000. Accordingly, NOI for Established Communities increased by $24,598,000 or 8.0% to $330,964,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the nine months ended September 30, 2007 as compared to the nine months ended September 30, 2006:

YTD 2007 Compared to YTD 2006


	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
Northeast		3.4	%		1.5	%		4.4	%		42.8	%
Mid-Atlantic		6.9	%		5.2	%		7.9	%		16.1	%
Midwest		5.9	%		10.5	%		3.1	%		2.1	%
Pacific NW		11.7	%		(0.2	%)		18.2	%		4.3	%
No. California		8.9	%		(0.8	%)		13.1	%		22.1	%
So. California		5.3	%		1.2	%		7.0	%		12.6	%

Total		6.0	%		1.8	%		8.0	%		100.0	%


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

Development and Redevelopment Activity

The Company completed the development of three communities during the third quarter of 2007:

			Avalon Wilshire, located in Los Angeles, CA, is a mid-rise community containing 123 apartment homes and was completed for a Total Capital Cost of $47,600,000;

			Avalon Lyndhurst, located in the Northern NJ area, is a garden-style community containing 328 apartment homes and was completed for a Total Capital Cost of $83,100,000; and

			Avalon at Glen Cove North, located in Long Island, NY, is a mid-rise community containing 111 apartment homes and was completed for a Total Capital Cost of $40,300,000.

The Company commenced construction of three communities during the third quarter of 2007: Avalon Sharon and Avalon at the Hingham Shipyard, both located in the Boston market, and Avalon Union City, located in Northern CA. These three communities are expected to contain an aggregate of 829 apartment homes when completed for an estimated Total Capital Cost of $208,600,000.

During the third quarter of 2007, the Company commenced the redevelopment of Essex Place, located in Boston, MA, and Avalon Redmond Place, located in Redmond, WA. These two communities contain an aggregate of 508 apartment homes and will be redeveloped for an expected Total Capital Cost of $15,800,000, excluding costs incurred prior to the start of redevelopment.

The Company purchased a land parcel located in Chicago, IL for $23,000,000. The Company expects to begin construction of the first phase of a multi-phase community in 2008.

Acquisition Activity

During the third quarter of 2007, the Company purchased a garden-style community located in San Jose, CA, adjacent to its existing Countrybrook community. The new community, renamed Countrybrook II, contains 80 apartment homes and was acquired for a purchase price of $17,700,000. The Company will operate this community in conjunction with Countrybrook.

Disposition Activity

During the third quarter of 2007, the Company sold three communities: Avalon View, located in the New York Metro area; San Marino, located in Northern CA; and Avalon West, located in the Boston market. These three communities, which contained a total of 656 apartment homes, were sold for an aggregate sales price of $127,000,000. The sale of these three communities resulted in a gain as reported in accordance with GAAP of approximately $78,300,000 and an Economic Gain of approximately $71,500,000. The weighted average Initial Year Market Cap Rate for these three communities was 4.6% and the Unleveraged IRR over an approximate 13-year holding period was 17.0%.

In October 2007, the Company completed the sale of its partnership interest in Avalon Grove to its third-party venture partner for $63,446,000. Avalon Grove, located in the Fairfield-New Haven market of Connecticut, was previously reported as an unconsolidated real estate investment. The Company will continue to manage this community.

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 third quarter of 2007, the Fund acquired the following communities:

			South Hills Apartments, located in Southern CA, is a garden-style community containing 85 apartment homes and was acquired for $20,700,000;

			Avalon Rutherford Station, located in Northern NJ, is a garden-style community containing 108 apartment homes and was acquired for $35,850,000; and

			Colonial Towers, located in the Boston market, is a garden-style community containing 211 apartment homes and was acquired for $21,500,000.

During the third quarter of 2007, the Fund completed the redevelopment of Avalon Redmond, located in Seattle, WA. Avalon Redmond is a garden-style community containing 400 apartment homes and was completed for a Total Capital Cost of $7,100,000, excluding costs incurred prior to the start of redevelopment.

During the third quarter of 2007, the Fund commenced the redevelopment of Cedar Valley, located in Columbia, MD. Cedar Valley contains 156 apartment homes and will be redeveloped for an aggregate Total Capital Cost of $4,000,000, excluding costs incurred prior to the start of redevelopment.

The Fund has invested $771,775,000 as of September 30, 2007. Management expects to invest approximately $50,000,000 of additional funds to redevelop the assets acquired, at which time, the Fund will become fully invested.

Financing, Liquidity and Balance Sheet Statistics

In August 2007, the Company repaid $150,000,000 of unsecured notes with an annual interest rate of 5.0% pursuant to their scheduled maturity.

As of September 30, 2007, the Company had $245,000,000 outstanding under its $650,000,000 unsecured credit facility. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 24.5% at September 30, 2007. Unencumbered NOI for the nine months ended September 30, 2007 was 83.2% and Interest Coverage for the third quarter of 2007 was 4.4 times.

In August 2007, the Company announced that its Board of Directors authorized an increase in its common stock repurchase program. Under the revised authorized limits, the Company may acquire shares of its common stock in open market or negotiated transactions up to an aggregate purchase price of $300,000,000. From August 1, 2007 to September 30, 2007, the Company repurchased 1,031,400 shares at an average price of $111.31 per share through this program.

Revised Accounting Interpretation

As discussed in Amendment No. 1 to the Companys 2006 Annual Report on Form 10-K/A, the Company made a change related to its accounting for land leases. This change resulted in a non-cash charge to operating expenses and reduced reported FFO by $0.03 and $0.10 per share from what would have been reported for the three and nine months ended September 30, 2007 under the Companys prior accounting treatment. Results for the three and nine months ended September 30, 2006 have also been restated, reducing reported FFO by $0.04 and $0.11 per share from what had previously been reported to reflect the impact of this change in land lease accounting.

Fourth Quarter and Full Year 2007 Financial Outlook

The Company expects EPS in the range of $1.09 to $1.13 for the fourth quarter of 2007. Based on changes in the Companys disposition plan, the Company is revising its projected EPS to a range of $3.83 to $3.87 for the full year 2007.

The Company re-affirmed the midpoint of the range for the 2007 outlook provided in the second quarter earnings release, while narrowing the expected range. The Company expects Projected FFO per share in the range of $4.63 to $4.67 for the full year 2007. The Company expects Projected FFO per share in the range of $1.16 to $1.20 for the fourth quarter of 2007. The financial outlook provided for the fourth quarter and full year 2007 includes non-cash charges of $0.03 and $0.13 per share, respectively, related to the revised land lease accounting discussed in Amendment No. 1 to the Companys 2006 Annual Report on Form 10-K/A.

Other Matters

The Company will hold a conference call on November 1, 2007 at 11:00 AM EDT to review and answer questions about this release, its third quarter 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 November 1, 2007 at 1:00 PM EDT to November 8, 2007 at 11:59 PM EST, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 19275540.

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.

About AvalonBay Communities, Inc.

As of September 30, 2007, the Company owned or held a direct or indirect ownership interest in 182 apartment communities containing 51,898 apartment homes in ten states and the District of Columbia, of which 19 communities were under construction and nine 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 Amendment No. 1 on Form 10-K/A to our Annual Report on Form 10-K for the fiscal year ended December 31, 2006 under the headings Risk Factors and under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations Forward-Looking Statements and in subsequent quarterly reports on Form 10-Q.

The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the fourth 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 14, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 14 is included in the full earnings release available at the Companys website at http://www.avalonbay.com/earnings.

THIRD QUARTER 2007

Supplemental Operating and Financial Data

Avalon Wilshire is located in Los Angeles, CA, adjacent to Hancock Park and close to Hollywood and Beverly Hills. Completed in the third quarter of 2007 for a Total Capital Cost of $47.6 million, the community contains 123 apartment homes.

Avalon Wilshire features 1, 2 and 3 bedroom apartment homes and townhomes; all with modern finishes, including granite countertops in the kitchen, soaking tubs in the master baths, washer/dryer in all homes, private balconies and spacious living rooms for entertaining. Community amenities include street-level shops and restaurants, courtyard spa and cucina, and a private club room.

THIRD QUARTER 2007

Supplemental Operating and Financial Data

Table of Contents


Company Profile
Selected Operating and Other Information		Attachment 1
Detailed Operating Information		Attachment 2
Condensed Consolidated Balance Sheets		Attachment 3

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

Development, Redevelopment, Acquisition and Disposition Profile
Summary of Development and Redevelopment Activity		Attachment 7
Development Communities		Attachment 8
Redevelopment Communities		Attachment 9
Summary of Development and Redevelopment Community Activity		Attachment 10
Future Development		Attachment 11
Unconsolidated Real Estate Investments		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 Amendment No. 1 to the Companys Annual Report on Form 10-K/A for the fiscal year ended December 31, 2006 and the Companys Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
September 30, 2007
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q3		Q3					YTD		YTD
	2007		2006 (1)		% Change			2007		2006 (1)		% Change
Net income available to common stockholders	$	126,594	$	39,938		217.0	%	$	219,815	$	213,708		2.9	%

Per common share basic	$	1.60	$	0.54		196.3	%	$	2.78	$	2.89		(3.8	%)
Per common share diluted	$	1.58	$	0.53		198.1	%	$	2.74	$	2.83		(3.2	%)

Funds from Operations	$	95,302	$	81,261		17.3	%	$	278,459	$	240,305		15.9	%
Per common share diluted	$	1.19	$	1.07		11.2	%	$	3.47	$	3.18		9.1	%

Dividends declared common	$	66,934	$	58,183		15.0	%	$	202,402	$	174,213		16.2	%
Per common share	$	0.85	$	0.78		9.0	%	$	2.55	$	2.34		9.0	%

Common shares outstanding		78,746,272		74,594,177		5.6	%		78,746,272		74,594,177		5.6	%
Outstanding operating partnership units		64,019		150,477		(57.5	%)		64,019		150,477		(57.5	%)

Total outstanding shares and units		78,810,291		74,744,654		5.4	%		78,810,291		74,744,654		5.4	%


Average shares outstanding basic		78,962,615		74,226,808		6.4	%		78,942,370		74,047,944		6.6	%
Average operating partnership units outstanding		89,505		151,936		(41.1	%)		119,960		180,265		(33.5	%)
Effect of dilutive securities		972,594		1,310,155		(25.8	%)		1,133,578		1,275,817		(11.1	%)

Average shares outstanding diluted		80,024,714		75,688,899		5.7	%		80,195,908		75,504,026		6.2	%

DEBT COMPOSITION AND MATURITIES


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

Conventional Debt										2007	$	117,802
Long-term, fixed rate	$	2,052,873		16.4	%					2008	$	208,908
Long-term, variable rate		125,056		1.0	%					2009	$	231,428
Variable-rate credit facility		245,000		2.0	%					2010	$	235,268

Subtotal, Conventional		2,422,929		19.4	%		6.5	%		2011	$	405,337


Tax-Exempt Debt
Long-term, fixed rate		206,050		1.7	%
Long-term, variable rate		428,123		3.4	%

Subtotal, Tax-Exempt		634,173		5.1	%		4.9	%

Total Debt	$	3,057,102		24.5	%		6.2	%


⁽¹⁾		2006 amounts have been restated from amounts previously reported to reflect a change in accounting for land leases.

⁽²⁾		Excludes debt associated with communities classified as held for sale.

⁽³⁾		Includes credit enhancement fees, trustees fees, etc.

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q307	$	19,193	$	7,008	$	93
Q207	$	18,393	$	6,684	$	38
Q107	$	15,433	$	6,606	$	9
Q406	$	13,909	$	6,847	$	92
Q306	$	12,910	$	6,361	$	203

COMMUNITY INFORMATION


			Apartment
	Communities		Homes

Current Communities		163		45,812
Development Communities		19		6,086
Development Rights		52		14,477

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
September 30, 2007
(Dollars in thousands except per share data)
(unaudited)


	Q3			Q3						YTD			YTD
	2007			2006 (1)			% Change			2007			2006 (1)			% Change
Revenue:
Rental and other income	$	206,634		$	182,061			13.5	%	$	595,934		$	527,455			13.0	%
Management, development and other fees		1,490			1,585			(6.0	%)		4,421			4,186			5.6	%

Total		208,124			183,646			13.3	%		600,355			531,641			12.9	%


Operating expenses:
Direct property operating expenses, excluding property taxes		49,128			45,502			8.0	%		141,942			128,565			10.4	%
Property taxes		19,058			16,734			13.9	%		55,213			49,775			10.9	%
Property management and other indirect operating expenses		10,792			8,154			32.4	%		27,938			25,092			11.3	%
Investments and investment management (2)		1,625			1,388			17.1	%		6,133			5,257			16.7	%

Total		80,603			71,778			12.3	%		231,226			208,689			10.8	%


Interest expense, net		(25,129	)		(26,479	)		(5.1	%)		(71,283	)		(80,788	)		(11.8	%)
General and administrative expense		(6,645	)		(5,633	)		18.0	%		(20,067	)		(18,395	)		9.1	%
Joint venture income and minority interest expense		(388	)		454			(185.5	%)		(1,576	)		629			(350.6	%)
Depreciation expense		(45,682	)		(39,752	)		14.9	%		(132,371	)		(119,687	)		10.6	%
Gain on sale of land					505			(100.0	%)		545			13,671			(96.0	%)

Income from continuing operations		49,677			40,963			21.3	%		144,377			118,382			22.0	%
Discontinued operations: (3)
Income from discontinued operations		834			1,150			(27.5	%)		3,705			4,440			(16.6	%)
Gain on sale of communities		78,258						N/A			78,258			97,411			(19.7	%)

Total discontinued operations		79,092			1,150			N/A			81,963			101,851			(19.5	%)

Net income		128,769			42,113			205.8	%		226,340			220,233			2.8	%
Dividends attributable to preferred stock		(2,175	)		(2,175	)					(6,525	)		(6,525	)

Net income available to common stockholders	$	126,594		$	39,938			217.0	%	$	219,815		$	213,708			2.9	%

Net income per common share basic	$	1.60		$	0.54			196.3	%	$	2.78		$	2.89			(3.8	%)

Net income per common share diluted	$	1.58		$	0.53			198.1	%	$	2.74		$	2.83			(3.2	%)


(1)		Amounts for the three and nine months ended September 30, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

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

(3)		Reflects net income for communities classified as discontinued operations as of September 30, 2007 and communities sold during the period from January 1, 2006 through September 30, 2007. The following table details income from discontinued operations for the periods shown:


	Q3			Q3			YTD			YTD
	2007			2006			2007			2006
Rental income	$	2,327		$	4,021		$	10,341		$	13,646
Operating and other expenses		(951	)		(1,493	)		(3,773	)		(5,043	)
Interest expense, net		(144	)		(458	)		(687	)		(1,408	)
Depreciation expense		(398	)		(920	)		(2,176	)		(2,755	)

Income from discontinued operations (4)	$	834		$	1,150		$	3,705		$	4,440


(4)		NOI for discontinued operations totaled $1,376 and $6,568, of which $920 and $3,001 related to assets held for sale for the three and nine months ended September 30, 2007, respectively.

Attachment 3

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


	September 30,			December 31,
	2007			2006
Real estate	$	6,100,880		$	5,586,521
Less accumulated depreciation		(1,212,453	)		(1,080,313	)

Net operating real estate		4,888,427			4,506,208

Construction in progress, including land		806,189			641,781
Land held for development		373,757			202,314
Operating real estate assets held for sale, net		113,005			160,059


Total real estate, net		6,181,378			5,510,362

Cash and cash equivalents		29,216			8,284
Cash in escrow		195,409			135,917
Resident security deposits		30,325			26,429
Other assets (1)		196,371			164,499

Total assets	$	6,632,699		$	5,845,491


Unsecured senior notes, net	$	2,003,394		$	2,153,078
Unsecured facility		245,000
Notes payable, net		806,102			648,350
Resident security deposits		42,162			37,654
Liabilities related to assets held for sale		44,974			69,100
Other liabilities		367,603			345,844

Total liabilities	$	3,509,235		$	3,254,026


Minority interest		23,152			18,311

Stockholders equity		3,100,312			2,573,154

Total liabilities and stockholders equity	$	6,632,699		$	5,845,491


⁽¹⁾		Other assets includes $11,004 and $3,821 relating to assets classified as held for sale as of September 30, 2007 and December 31, 2006, respectively.

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes Established Communities (1)
September 30, 2007


	Apartment
	Homes		Average Rental Rates(2)						Economic Occupancy							Rental Revenue ($000s) (3)
			Q3 07		Q3 06		% Change		Q3 07		Q3 06		% Change			Q3 07		Q3 06		% Change
Northeast
Boston, MA		3,619	$	1,882	$	1,877		0.3%		95.9%		95.9%		0.0%		$	19,614	$	19,549		0.3%
Fairfield-New Haven, CT		2,412		2,046		1,953		4.8%		97.3%		97.6%		(0.3%	)		14,412		13,787		4.5%
New York, NY		1,730		2,508		2,406		4.2%		97.0%		96.9%		0.1%			12,627		12,103		4.3%
Long Island, NY		1,469		2,351		2,277		3.2%		94.2%		97.1%		(2.9%	)		9,759		9,727		0.3%
Northern New Jersey		1,182		2,674		2,525		5.9%		97.3%		97.4%		(0.1%	)		9,230		8,722		5.8%
Central New Jersey		814		1,705		1,695		0.6%		97.6%		95.3%		2.3%			4,065		3,949		2.9%

Northeast Average		11,226		2,147		2,082		3.1%		96.4%		96.7%		(0.3%	)		69,707		67,837		2.8%


Mid-Atlantic
Washington, DC		5,215		1,784		1,678		6.3%		96.2%		97.1%		(0.9%	)		26,853		25,489		5.4%
Baltimore, MD		542		1,275		1,207		5.6%		95.9%		96.7%		(0.8%	)		1,989		1,898		4.8%

Mid-Atlantic Average		5,757		1,736		1,635		6.2%		96.2%		97.1%		(0.9%	)		28,842		27,387		5.3%


Midwest
Chicago, IL		887		1,191		1,151		3.5%		95.2%		96.7%		(1.5%	)		3,016		2,956		2.0%

Midwest Average		887		1,191		1,151		3.5%		95.2%		96.7%		(1.5%	)		3,016		2,956		2.0%


Pacific Northwest
Seattle, WA		2,278		1,289		1,165		10.6%		97.1%		96.7%		0.4%			8,557		7,706		11.0%

Pacific Northwest Average		2,278		1,289		1,165		10.6%		97.1%		96.7%		0.4%			8,557		7,706		11.0%


Northern California
San Jose, CA		4,292		1,737		1,591		9.2%		97.0%		96.9%		0.1%			21,709		19,859		9.3%
Oakland-East Bay, CA		1,955		1,407		1,320		6.6%		97.0%		96.2%		0.8%			8,004		7,454		7.4%
San Francisco, CA		1,862		2,008		1,893		6.1%		97.3%		96.3%		1.0%			10,910		10,186		7.1%

Northern California Average		8,109		1,721		1,595		7.9%		97.0%		96.6%		0.4%			40,623		37,499		8.3%


Southern California
Los Angeles, CA		1,198		1,684		1,593		5.7%		96.6%		96.3%		0.3%			5,845		5,512		6.0%
San Diego, CA		1,058		1,460		1,420		2.8%		94.9%		96.4%		(1.5%	)		4,396		4,341		1.3%
Orange County, CA		916		1,477		1,393		6.0%		95.2%		96.9%		(1.7%	)		3,864		3,705		4.3%

Southern California Average		3,172		1,549		1,478		4.8%		95.7%		96.5%		(0.8%	)		14,105		13,558		4.0%


Average/Total Established		31,429	$	1,812	$	1,722		5.2%		96.5%		96.7%		(0.2%	)	$	164,850	$	156,943		5.0%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of 2006 to 2007 is meaningful. The number of Established Communities was adjusted during the third quarter of 2007 to reflect changes in the Companys disposition program.

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

(3)		With concessions presented on a cash basis, rental revenue from Established Communities increased 4.3% between years.

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes Established Communities (1)
September 30, 2007


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy							Rental Revenue ($000s)
			Q3 07		Q2 07		% Change			Q3 07		Q2 07		% Change			Q3 07		Q2 07		% Change
Northeast
Boston, MA		3,619	$	1,882	$	1,876		0.3%			95.9%		96.1%		(0.2%	)	$	19,614	$	19,597		0.1%
Fairfield-New Haven, CT		2,412		2,046		2,019		1.3%			97.3%		96.9%		0.4%			14,412		14,156		1.8%
New York, NY		1,730		2,508		2,487		0.8%			97.0%		97.4%		(0.4%	)		12,627		12,575		0.4%
Long Island, NY		1,469		2,351		2,327		1.0%			94.2%		95.6%		(1.4%	)		9,759		9,808		(0.5%	)
Northern New Jersey		1,182		2,674		2,641		1.2%			97.3%		95.9%		1.4%			9,230		8,985		2.7%
Central New Jersey		814		1,705		1,703		0.1%			97.6%		96.6%		1.0%			4,065		4,018		1.2%

Northeast Average		11,226		2,147		2,127		0.9%			96.4%		96.5%		(0.1%	)		69,707		69,139		0.8%


Mid-Atlantic
Washington, DC		5,215		1,784		1,779		0.3%			96.2%		95.1%		1.1%			26,853		26,473		1.4%
Baltimore, MD		542		1,275		1,271		0.3%			95.9%		96.6%		(0.7%	)		1,989		1,996		(0.4%	)

Mid-Atlantic Average		5,757		1,736		1,731		0.3%			96.2%		95.2%		1.0%			28,842		28,469		1.3%


Midwest
Chicago, IL		887		1,191		1,198		(0.6%	)		95.2%		94.6%		0.6%			3,016		3,016		0.0%

Midwest Average		887		1,191		1,198		(0.6%	)		95.2%		94.6%		0.6%			3,016		3,016		0.0%


Pacific Northwest
Seattle, WA		2,278		1,289		1,262		2.1%			97.1%		95.8%		1.3%			8,557		8,264		3.5%

Pacific Northwest Average		2,278		1,289		1,262		2.1%			97.1%		95.8%		1.3%			8,557		8,264		3.5%


Northern California
San Jose, CA		4,292		1,737		1,691		2.7%			97.0%		97.1%		(0.1%	)		21,709		21,151		2.6%
Oakland-East Bay, CA		1,955		1,407		1,382		1.8%			97.0%		96.8%		0.2%			8,004		7,850		2.0%
San Francisco, CA		1,862		2,008		1,975		1.7%			97.3%		95.9%		1.4%			10,910		10,586		3.1%

Northern California Average		8,109		1,721		1,682		2.3%			97.0%		96.8%		0.2%			40,623		39,587		2.6%


Southern California
Los Angeles, CA		1,198		1,684		1,658		1.6%			96.6%		95.8%		0.8%			5,845		5,710		2.4%
San Diego, CA		1,058		1,460		1,460		0.0%			94.9%		95.5%		(0.6%	)		4,396		4,427		(0.7%	)
Orange County, CA		916		1,477		1,457		1.4%			95.2%		95.8%		(0.6%	)		3,864		3,836		0.7%

Southern California Average		3,172		1,549		1,534		1.0%			95.7%		95.7%		0.0%			14,105		13,973		0.9%


Average/Total Established		31,429	$	1,812	$	1,790		1.2%			96.5%		96.2%		0.3%		$	164,850	$	162,448		1.5%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of second and third quarter of 2007 is meaningful. The number of Established Communities was adjusted during the third quarter of 2007 to reflect changes in the Companys disposition program.

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

Attachment 6

AvalonBay Communities, Inc.
Year-To-Date Revenue and Occupancy Changes Established Communities (1)
September 30, 2007


	Apartment
	Homes		Average Rental Rates (2)						Economic Occupancy							Rental Revenue ($000s)
			YTD Q3 07		YTD Q3 06		% Change		YTD Q3 07		YTD Q3 06		% Change			YTD Q3 07		YTD Q3 06		% Change
Northeast
Boston, MA		3,619	$	1,872	$	1,859		0.7%		95.8%		96.0%		(0.2%	)	$	58,410	$	58,130		0.5%
Fairfield-New Haven, CT		2,412		2,017		1,902		6.0%		96.5%		97.0%		(0.5%	)		42,232		40,025		5.5%
New York, NY		1,730		2,481		2,361		5.1%		96.7%		97.0%		(0.3%	)		37,352		35,657		4.8%
Long Island, NY		1,469		2,325		2,237		3.9%		95.5%		96.5%		(1.0%	)		29,358		28,537		2.9%
Northern New Jersey		1,182		2,631		2,464		6.8%		96.7%		97.1%		(0.4%	)		27,075		25,442		6.4%
Central New Jersey		814		1,687		1,675		0.7%		97.0%		95.8%		1.2%			11,984		11,763		1.9%

Northeast Average		11,226		2,124		2,046		3.8%		96.2%		96.6%		(0.4%	)		206,411		199,554		3.4%


Mid-Atlantic
Washington, DC		5,215		1,765		1,636		7.9%		95.8%		96.7%		(0.9%	)		79,354		74,138		7.0%
Baltimore, MD		542		1,267		1,185		6.9%		95.8%		97.6%		(1.8%	)		5,921		5,635		5.1%

Mid-Atlantic Average		5,757		1,718		1,592		7.9%		95.8%		96.8%		(1.0%	)		85,275		79,773		6.9%


Midwest
Chicago, IL		887		1,189		1,123		5.9%		95.1%		95.1%		0.0%			9,026		8,524		5.9%

Midwest Average		887		1,189		1,123		5.9%		95.1%		95.1%		0.0%			9,026		8,524		5.9%


Pacific Northwest
Seattle, WA		2,278		1,261		1,128		11.8%		96.3%		96.4%		(0.1%	)		24,903		22,288		11.7%

Pacific Northwest Average		2,278		1,261		1,128		11.8%		96.3%		96.4%		(0.1%	)		24,903		22,288		11.7%


Northern California
San Jose, CA		4,292		1,694		1,543		9.8%		97.2%		96.9%		0.3%			63,603		57,745		10.1%
Oakland-East Bay, CA		1,955		1,383		1,283		7.8%		96.8%		96.6%		0.2%			23,545		21,809		8.0%
San Francisco, CA		1,862		1,976		1,840		7.4%		96.4%		96.5%		(0.1%	)		31,917		29,755		7.3%

Northern California Average		8,109		1,684		1,549		8.7%		96.9%		96.7%		0.2%			119,065		109,309		8.9%


Southern California
Los Angeles, CA		1,198		1,661		1,564		6.2%		95.9%		95.9%		0.0%			17,167		16,170		6.2%
San Diego, CA		1,058		1,453		1,392		4.4%		95.3%		96.0%		(0.7%	)		13,190		12,719		3.7%
Orange County, CA		916		1,456		1,367		6.5%		96.0%		96.5%		(0.5%	)		11,521		10,871		6.0%

Southern California Average		3,172		1,533		1,450		5.7%		95.7%		96.1%		(0.4%	)		41,878		39,760		5.3%


Average/Total Established		31,429	$	1,786	$	1,680		6.3%		96.3%		96.6%		(0.3%	)	$	486,558	$	459,208		6.0%


(1)		Established Communities are communities with stabilized occupancy and operating expenses as of January 1, 2006 such that a comparison of 2006 to 2007 is meaningful. The number of Established Communities was adjusted during the third quarter of 2007 to reflect changes in the Companys disposition program.

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

Attachment 7

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity (1) as of September 30, 2007


			Number		Number		Total
			of		of		Capital Cost (2)
			Communities		Homes		(millions)
Portfolio Additions:	(3	)
2007 Annual Completions
Development				7		1,659	$	382.0
Redevelopment	(4	)		6		2,043		37.8

Total Additions				13		3,702	$	419.8


2006 Annual Completions
Development				6		1,368	$	375.2
Redevelopment	(4	)		2		506		10.1

Total Additions				8		1,874	$	385.3


Pipeline Activity:	(3	)
Currently Under Construction
Development				19		6,086	$	1,724.9
Redevelopment	(4	)		9		2,452		56.6

Subtotal				28		8,538	$	1,781.5


Planning
Development Rights				52		14,477	$	4,353.0

Total Pipeline				80		23,015	$	6,134.5


(1)		Represents activity for consolidated and unconsolidated entities.

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

(3)		Information represents projections and estimates.

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

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 third quarter of 2007.

Attachment 8

AvalonBay Communities, Inc.
Development Communities as of September 30, 2007


	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 #14
Under Construction:
1. Avalon Riverview North		100	%		602	$	175.6			Q3 2005			Q3 2007		Q2 2008		Q4 2008	$	2,870		52.7	%		69.4	%		41.5	%		15.6	%
New York, NY
2. Avalon Danvers (6)		100	%		433		84.8			Q4 2005			Q1 2007		Q3 2008		Q1 2009		1,515		61.4	%		44.1	%		39.5	%		31.7	%
Danvers, MA
3. Avalon Woburn		100	%		446		83.1			Q4 2005			Q3 2006		Q4 2007		Q1 2008		1,595		100.0	%		96.9	%		93.0	%		75.2	%
Woburn, MA
4. Avalon on the Sound II		100	%		588		181.8			Q1 2006			Q2 2007		Q2 2008		Q4 2008		2,460		61.9	%		51.7	%		46.1	%		21.2	%
New Rochelle, NY
5. Avalon Meydenbauer		100	%		368		84.3			Q1 2006			Q1 2008		Q3 2008		Q1 2009		1,625		N/A			N/A			N/A			N/A
Bellevue, WA
6. Avalon at Dublin Station I		100	%		305		85.8			Q2 2006			Q4 2007		Q2 2008		Q4 2008		1,995		N/A			0.3	%		N/A			N/A
Dublin, CA
7. Avalon at Lexington Hills		100	%		387		86.2			Q2 2006			Q2 2007		Q3 2008		Q1 2009		1,995		24.3	%		31.8	%		23.8	%		15.1	%
Lexington, MA
8. Avalon Bowery Place II (7)		100	%		90		61.9			Q3 2006			Q4 2007		Q1 2008		Q2 2008		4,055		N/A			50.0	%		N/A			N/A
New York, NY
9. 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
10. Avalon Warner Place (8)		100	%		210		53.9			Q4 2006			Q2 2008		Q3 2008		Q1 2009		2,020		N/A			N/A			N/A			N/A
Canoga Park, CA
11. Avalon Acton (7)		100	%		380		68.8			Q4 2006			Q4 2007		Q4 2008		Q2 2009		1,470		7.4	%		7.1	%		3.2	%		N/A
Acton, MA
12. Avalon Morningside Park (7)		100	%		296		125.5			Q1 2007			Q3 2008		Q1 2009		Q3 2009		3,640		N/A			N/A			N/A			N/A
New York, NY
13. Avalon White Plains		100	%		393		154.5			Q2 2007			Q4 2008		Q2 2009		Q4 2009		2,820		N/A			N/A			N/A			N/A
White Plains, NY
14. Avalon at Tinton Falls		100	%		216		41.2			Q2 2007			Q3 2008		Q4 2008		Q2 2009		1,760		N/A			N/A			N/A			N/A
Tinton Falls, NJ
15. Avalon Fashion Valley		100	%		161		64.7			Q2 2007			Q4 2008		Q1 2009		Q2 2009		2,380		N/A			N/A			N/A			N/A
San Diego, CA
16. Avalon Anaheim		100	%		251		102.7			Q2 2007			Q2 2009		Q3 2009		Q1 2010		2,530		N/A			N/A			N/A			N/A
Anaheim, CA
17. Avalon Union City		100	%		438		125.2			Q3 2007			Q2 2009		Q3 2009		Q1 2010		1,895		N/A			N/A			N/A			N/A
Union City, CA
18. Avalon at the Hingham Shipyard		100	%		235		52.7			Q3 2007			Q3 2008		Q4 2008		Q2 2009		2,090		N/A			N/A			N/A			N/A
Hingham, MA
19. Avalon Sharon		100	%		156		30.7			Q3 2007			Q2 2008		Q3 2008		Q1 2009		1,610		N/A			N/A			N/A			N/A
Sharon, MA

Subtotal/Weighted Average					6,086	$	1,724.9											$	2,200

Completed this Quarter:
1. Avalon Wilshire		100	%		123	$	47.6			Q1 2005			Q2 2007		Q3 2007		Q1 2008	$	2,745		100.0	%		91.9	%		89.4	%		52.8	%
Los Angeles, CA
2. Avalon Lyndhurst (9)		100	%		328		83.1			Q3 2005			Q4 2006		Q3 2007		Q1 2008		2,240		100.0	%		94.8	%		94.2	%		77.4	%
Lyndhurst, NJ
3. Avalon at Glen Cove North		100	%		111		40.3			Q4 2005			Q1 2007		Q3 2007		Q1 2008		2,225		100.0	%		82.9	%		78.4	%		50.8	%
Glen Cove, NY Subtotal/Weighted Average					562	$	171.0											$	2,345

Total/Weighted Average					6,648	$	1,895.9											$	2,210

Weighted Average Projected NOI as a % of Total Capital Cost (1) (10)							6.5	%	Inclusive of Concessions - See Attachment #14

Non-Stabilized Development Communities: (11)									% Economic Occ					Asset Cost Basis, Non-Stabilized Development												Source

Prior Quarter Completions:										(1	) (5)			Capital Cost, Prior Quarter Completions									$	35.9		Att. 8
Avalon Shrewsbury					251	$	35.9							Capital Cost, Current Completions										171.0		Att. 8

Total					251	$	35.9			96.7	%			Capital Cost, Under Construction										1,724.9		Att. 8

														Less: Remaining to Invest, Under Construction
														Total Remaining to Invest							1,334.8					Att. 10
														Capital Cost, Projected Q4 2007 Starts							(629.4	)				Att. 10, Footnote 5

																								(705.4	)

														Total Asset Cost Basis, Non-Stabilized Development									$	1,226.4

Q3 2007 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $3.6 million. 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 October 26, 2007.

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

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

(5)		Represents Economic Occupancy for the third quarter of 2007.

(6)		Avalon Danvers experienced a fire in April 2007. The Company expects insurance proceeds will substantially cover all losses. The schedule cited above reflects delays associated with the fire.

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

(8)		This community was formerly known as Avalon Canoga Park.

(9)		The remediation of the Companys Avalon Lyndhurst development site, as discussed in the Companys second quarter 2006 Earnings Release, is complete. The net cost associated with the remediation effort after considering insurance proceeds received to date, including costs associated with construction delays, is expected to total approximately $6.0 million. The Company is pursuing the recovery of these additional costs 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 the recovery of these additional costs.

(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 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 third quarter of 2007.

Attachment 9

AvalonBay Communities, Inc.
Redevelopment Communities as of September 30, 2007


						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		@ 9/30/07
																			Inclusive of
																			Concessions
																			See Attachment #14
Under Redevelopment:

AvalonBay
1. Avalon Walk I and II		100	%		764	$	59.4	$	71.2			Q3 1992		Q1 2006		Q4 2007		Q2 2008	$	1,305		740		1
Hamden, CT												Q3 1994
2. Avalon at AutumnWoods		100	%		420		31.2		38.3			Q4 1996		Q3 2006		Q2 2008		Q4 2008		1,365		342		10
Fairfax, VA
3. Essex Place		100	%		286		23.7		34.5			Q3 2004		Q3 2007		Q2 2009		Q4 2009		1,295
Peabody, MA
4. Avalon Redmond Place		100	%		222		26.3		31.3			Q3 1999		Q3 2007		Q4 2008		Q2 2009		1,550		17		24
Redmond, WA

Subtotal					1,692	$	140.6	$	175.3										$	1,350		1,099		35

Investment Management Fund (The Fund)
1. Civic Center Place		15	%		192		38.1		43.5			Q4 2005		Q4 2006		Q4 2007		Q2 2008		1,695		168		10
Norwalk, CA
2. Avalon at Poplar Creek		15	%		196		25.2		28.6			Q2 2006		Q4 2006		Q4 2007		Q2 2008		1,185		169		5
Schaumburg, IL
3. Avalon Sunset (3)		15	%		82		17.9		21.3			Q4 2005		Q1 2007		Q4 2007		Q2 2008		2,005		78
Los Angeles, CA
4. Paseo Park		15	%		134		19.8		25.5			Q4 2005		Q2 2007		Q2 2008		Q4 2008		1,455		67		12
Fremont, CA
5. Cedar Valley		15	%		156		21.0		25.0			Q4 2006		Q3 2007		Q1 2009		Q3 2009		1,200		2		9
Columbia, MD

Subtotal					760	$	122.0	$	143.9										$	1,455		484		36

Total/Weighted Average					2,452	$	262.6	$	319.2										$	1,385		1,583		71

Completed this Quarter:
1. Avalon Redmond (4)		15	%		400	$	49.2	$	56.3			Q4 2004		Q2 2006		Q3 2007		Q2 2008	$	1,240		400
Redmond, WA

Grand Total/Weighted Average					2,852	$	311.8	$	375.5										$	1,365		1,983		71

Weighted Average Projected NOI as a % of Total Capital Cost (2)									9.7	%	Inclusive of Concessions - See Attachment #14


(1)		Inclusive of acquisition cost.

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

(3)		This community was formerly known as Fuller Martel.

(4)		This community, formerly known as Ravenswood at the Park, was acquired in Q4 2004 and was transferred to a subsidiary of the Fund in Q1 2005, 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 third quarter of 2007.

Attachment 10

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of September 30, 2007
(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 (Actual)		464	$	167,109	$	106,100	$	908,630	$	673,945
Quarter 2 (Actual)		724		240,036		165,064		974,266		798,358
Quarter 3 (Actual)		774		220,762		214,732		1,334,784		792,320
Quarter 4 (Projected)		637		359,285		199,866		975,499		884,330

Total - 2007 Projected		2,599	$	987,192	$	685,762

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 (Actual)		63	$	3,332	$	21,704	$	14,538
Quarter 2 (Actual)		105		3,014		24,290		16,403
Quarter 3 (Actual)		97		3,896		61,583		16,182
Quarter 4 (Projected)		65		10,967		50,616		22,551

Total - 2007 Projected			$	21,209


(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 #14 Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		Represents projected Total Capital Cost 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 development or redevelopment and those for which development or redevelopment is expected to begin within the next 90 days. Remaining to invest for Q3 2007 includes $629.4 million attributed to five anticipated Q4 2007 development starts and $40.7 million related to two anticipated Q4 2007 redevelopment starts.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q3 2007 includes $2.3 million related to five 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 third quarter of 2007.

Attachment 11

AvalonBay Communities, Inc.
Future Development as of September 30, 2007

DEVELOPMENT RIGHTS (1)


				Estimated		Total
				Number		Capital Cost (1)
Location of Development Right				of Homes		(millions)
1.	Irvine, CA	(2	)		279		78
2.	San Francisco, CA Phase III	(2	)		260		158
3.	Coram, NY	(2	)		200		48
4.	Shelton, CT				99		27
5.	Brooklyn, NY	(2	)		628		319
6.	Los Angeles, CA	(2	)		174		78
7.	Randolph, MA	(2	)		276		54
8.	Northborough, MA				350		61
9.	Pleasant Hill, CA	(4	)		416		153
10.	Kirkland, WA Phase II	(2	)		181		60
11.	Rockville Centre, NY				349		129
12.	Norwalk, CT				311		84
13.	Canoga Park, CA	(2	)		297		85
14.	Andover, MA	(2	)		115		21
15.	Bellevue, WA				408		126
16.	North Bergen, NJ	(3	)		164		48
17.	Chicago, IL Phase I	(2	)		492		173
18.	Wilton, CT	(2	)		100		24
19.	Camarillo, CA				376		55
20.	Irvine, CA III				170		73
21.	San Francisco, CA				157		50
22.	Brooklyn, NY II				825		443
23.	New York, NY II				680		261
24.	Seattle, WA				201		65
25.	Cohasset, MA	(2	)		200		38
26.	Dublin, CA Phase II				405		105
27.	Greenburgh, NY Phase II				444		112
28.	Plymouth, MA Phase II				69		17
29.	Irvine, CA II	(2	)		179		57
30.	Wheaton, MD	(2	)		320		107
31.	West Long Branch, NJ	(3	)		180		34
32.	Milford, CT	(2	)		284		45
33.	Stratford, CT	(2	)		146		23
34.	Highland Park, NJ				178		42
35.	Oyster Bay, NY	(2	)		150		42
36.	Quincy, MA	(2	)		146		24
37.	Shelton, CT II				240		66
38.	Roselle Park, NJ	(3	)		300		70
39.	Yonkers, NY				400		88
40.	Randolph, NJ				115		31
41.	Hackensack, NJ				230		56
42.	Bloomingdale, NJ				173		38
43.	Alexandria, VA	(2	)		283		73
44.	Garden City, NY				160		58
45.	Tysons Corner, VA	(2	)		439		121
46.	Gaithersburg, MD				254		41
47.	Chicago, IL Phase II	(2	)		492		141
48.	Oakland, NJ				228		49
49.	Plainview, NY				160		38
50.	Wanaque, NJ				210		45
51.	Yaphank, NY	(2	)		343		57
52.	Rockville, MD	(2	)		241		62



	Total				14,477	$	4,353


(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.

(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 released from escrow and the bonds will be redeemed without penalty.

Attachment 12

AvalonBay Communities, Inc.
Unconsolidated Real Estate Investments (1) as of September 30, 2007
(Dollars in Thousands)


									AVB												AVBs
					# of		Total		Book		Outstanding Debt										Share
Unconsolidated		Percentage			Apt		Capital		Value						Interest			Maturity			of 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		18,053		N/A		12,056	Fixed			5.74	%	Mar 2012				1,833
	Chicago, IL
3.	Avalon Columbia		N/A			170		29,237		N/A		22,275	Fixed			5.48	%	Apr 2012				3,386
	Baltimore, MD
4.	Avalon Redmond		N/A			400		55,716		N/A		36,500	Fixed			4.96	%	Jul 2012				5,548
	Seattle, WA
5.	Avalon Sunset		N/A			82		20,237		N/A		11,500	Fixed			5.41	%	Feb 2014				1,748
	Los Angeles, CA
6.	Avalon at Poplar Creek		N/A			196		27,420		N/A		16,500	Fixed			4.83	%	Oct 2012				2,508
	Chicago, IL
7.	Civic Center Place (4)		N/A			192		41,542		N/A		23,806	Fixed			5.29	%	Aug 2013				3,619
	Norwalk, CA
8.	Paseo Park		N/A			134		22,436		N/A		11,800	Fixed			5.74	%	Nov 2013				1,794
	Fremont, CA
9.	Avalon at Yerba Buena		N/A			160		66,650		N/A		41,500	Fixed			5.88	%	Mar 2014				6,308
	San Francisco, CA
10.	Avalon at Aberdeen Station		N/A			290		58,129		N/A		34,456	Fixed			5.73	%	Sep 2013				5,237
	Aberdeen, NJ
11.	The Springs		N/A			320		47,621		N/A		26,000	Fixed			6.06	%	Oct 2014				3,952
	Corona, CA
12.	The Covington		N/A			256		32,404		N/A		17,243	Fixed			5.43	%	Jan 2014				2,621
	Lombard, IL
13.	Cedar Valley		N/A			156		21,044		N/A		12,000	Fixed			5.68	%	Feb 2014				1,824
	Columbia, MD
14.	Avalon Centerpoint		N/A			392		78,788		N/A		45,000	Fixed			5.74	%	Dec 2013				6,840
	Baltimore, MD
15.	Middlesex Crossing		N/A			252		37,251		N/A		24,100	Fixed			5.49	%	Dec 2013				3,663
	Billerica, MA
16.	Avalon Crystal Hill		N/A			168		38,010		N/A		24,500	Fixed			5.43	%	Dec 2013				3,724
	Ponoma, NY
17.	Skyway Terrace		N/A			348		74,255		N/A		37,500	Fixed			6.11	%	Mar 2014				5,700
	San Jose, CA
18.	Avalon Rutherford Station		N/A			108		36,285		N/A		20,719	Fixed			6.13	%	Sept 2016				3,149
	East Rutherford, NJ
19.	South Hills Apartments		N/A			85		20,753		N/A		11,762	Fixed			5.92	%	Dec 2013				1,788
	West Covina, CA
20.	Colonial Towers/South Shore Manor		N/A			211		21,515		N/A				N/A		N/A			N/A
	Weymouth, MA
	Fund corporate debt		N/A			N/A		N/A		N/A		119,500	Variable			6.22	%		2008	(5)		18,164

			15.2	%		4,229	$	771,754	$	110,456	$	565,482									$	85,954	(6)

Other Operating Joint Ventures
1.	Avalon Grove		(7	)		402	$	51,819	$	7,386	$			N/A		N/A			N/A		$
	Stamford, CT

2.	Avalon Chrystie Place I (8)		20.0	%		361		130,673		25,559		117,000	Variable			3.82	%	Nov 2036				23,400
	New York, NY

3.	Avalon at Mission Bay North II (8) (9)		25.0	%		313		122,055		25,167		85,336	Variable			6.63	%	Sep 2008 (10)				21,334
	San Francisco, CA

						1,076	$	304,547	$	58,112	$	202,336									$	44,734


						5,305	$	1,076,301	$	168,568	$	767,818									$	130,688


(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 #14 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)		As of September 30, 2007, these borrowings include $93,100 in borrowings under the Funds credit facility secured by uncalled capital commitments maturing in January 2008 and $26,400 in borrowings under a separate unsecured credit facility maturing in December 2008. The 6.22% interest rate represents a weighted average for both facilities during the third quarter of 2007.

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

(7)		After the venture makes certain threshold distributions to the third-party partner, the Company generally receives 50% of all further distributions. In October 2007, the Company sold its investment interest in Avalon Grove to its joint venture partner for approximately $63,446.

(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 September 30, 2007.

(10)		The maturity date as reflected on this attachment may be extended to September 2010 upon exercise of two one-year extension options. MVP I, LLC, the entity that owns and developed Mission Bay North II, has entered into an early rate lock agreement to refinance this construction loan in the fourth quarter of 2007.

Attachment 13

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of September 30, 2007
(Dollars in thousands)

Weighted

Accumulated

Weighted Average

Number of

Average

Gross Sales

Depreciation

Economic

Initial Year

Weighted Average

Communities Sold

Holding 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

2007:

3 Communities, 1 Land Parcel (2)

132,800

78,803

6,793

72,010

4.6

17.0

1998 - 2007 Total

6.6

2,477,921

927,858

201,289

726,570

6.1

15.6


(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 #14 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 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 it was determined to be 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 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):


	Q3			Q3			YTD			YTD
	2007			2006(1)			2007(2)			2006(1)(2)
Net income	$	128,769		$	42,113		$	226,340		$	220,233
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(6,525	)		(6,525	)
Depreciation real estate assets, including discontinued operations and joint venture adjustments		46,913			41,224			136,677			123,711
Minority interest, including discontinued operations		53			99			225			297
Gain on sale of previously depreciated real estate assets		(78,258	)					(78,258	)		(97,411	)

FFO attributable to common stockholders	$	95,302		$	81,261		$	278,459		$	240,305


Average shares outstanding diluted		80,024,714			75,688,899			80,195,908			75,504,026
EPS diluted	$	1.58		$	0.53		$	2.74		$	2.83

FFO per common share diluted	$	1.19		$	1.07		$	3.47		$	3.18


(1)		Amounts for the three and nine months ended September 30, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

(2)		FFO per common share diluted includes $0.01 for the nine months ended September 30, 2007 and $0.18 for the nine months ended September 30, 2006 related to the sale of a land parcel in each year.

Attachment 14 (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 fourth quarter and full year of 2007 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) Q4 07	$	1.09		$	1.13
Projected depreciation (real estate related)		0.59			0.61
Projected gain on sale of operating communities		(0.52	)		(0.54	)

Projected FFO per share (diluted) Q4 07	$	1.16		$	1.20


Projected EPS (diluted) Full Year 2007	$	3.83		$	3.87
Projected depreciation (real estate related)		2.28			2.32
Projected gain on sale of operating communities		(1.48	)		(1.52	)

Projected FFO per share (diluted) Full Year 2007	$	4.63		$	4.67

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 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):


	Q3			Q3			YTD			YTD
	2007			2006 ⁽¹⁾			2007			2006 ⁽¹⁾
Net income	$	128,769		$	42,113		$	226,340		$	220,233
Indirect operating expenses, net of corporate income		8,102			6,569			22,317			20,908
Investments and investment management		1,625			1,388			6,133			5,257
Interest expense, net		25,129			26,479			71,283			80,788
General and administrative expense		6,645			5,633			20,067			18,395
Joint venture income and minority interest		388			(454	)		1,576			(629	)
Depreciation expense		45,682			39,752			132,371			119,687
Gain on sale of real estate assets		(78,258	)		(505	)		(78,803	)		(111,082	)
Income from discontinued operations		(834	)		(1,150	)		(3,705	)		(4,440	)

NOI from continuing operations	$	137,248		$	119,825		$	397,579		$	349,117


Established:
Northeast	$	46,504		$	45,180		$	138,515		$	132,637
Mid-Atlantic		17,977			16,698			53,273			49,362
Midwest		1,773			1,844			5,450			5,288
Pacific NW		5,784			4,998			17,131			14,499
No. California		29,401			25,917			86,335			76,312
So. California		10,058			9,513			30,260			28,268

Total Established		111,497			104,150			330,964			306,366

Other Stabilized		7,821			6,186			22,837			13,498
Development/Redevelopment		17,930			9,489			43,778			29,253

NOI from continuing operations	$	137,248		$	119,825		$	397,579		$	349,117


⁽¹⁾		Amounts for the three and nine months ended September 30, 2006 have been restated from amounts previously reported to reflect a change in accounting for land leases.

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2006 through September 30, 2007). A reconciliation of NOI from communities sold or classified as discontinued operations to net income for these communities is as follows (dollars in thousands):


	Q3		Q3		YTD		YTD
	2007		2006		2007		2006
Income from discontinued operations	$	834	$	1,150	$	3,705	$	4,440
Interest expense, net		144		458		687		1,408
Depreciation expense		398		920		2,176		2,755

NOI from discontinued operations	$	1,376	$	2,528	$	6,568	$	8,603

NOI from assets sold	$	456	$	1,518	$	3,567	$	5,531
NOI from assets held for sale		920		1,010		3,001		3,072

NOI from discontinued operations	$	1,376	$	2,528	$	6,568	$	8,603

Attachment 14 (continued)

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 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):


	Q3			Q3
	2007			2006
Rental revenue (GAAP basis)	$	164,850		$	156,943
Concessions amortized		1,563			2,459
Concessions granted		(1,558	)		(1,407	)


Rental revenue (with concessions on a cash basis)	$	164,855		$	157,995


% change GAAP revenue		5.0	%
% change cash revenue		4.3	%

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 nine months ended September 30, 2007 as well as prior years activities is presented on Attachment 13.

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 14 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the third quarter of 2007 are as follows (dollars in thousands):


Net income	$	128,769
Interest expense, net		25,129
Interest expense (discontinued operations)		144
Depreciation expense		45,682
Depreciation expense (discontinued operations)		398


EBITDA	$	200,122


EBITDA from continuing operations	$	120,488
EBITDA from discontinued operations		79,634


EBITDA	$	200,122


EBITDA from continuing operations	$	120,488
Land gains


EBITDA from continuing operations, excluding land gains	$	120,488

Interest expense, net		25,129
Dividends attributable to preferred stock		2,175

Interest charges		27,304


Interest coverage		4.4

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. 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 a 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.

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.

Attachment 14 (continued)

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 a 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 September 30, 2007 is as follows (dollars in thousands):


Total debt	$	3,057,102

Common stock		9,296,785
Preferred stock		100,000
Operating partnership units		7,558
Total debt		3,057,102

Total Market Capitalization		12,461,445


Debt as % of capitalization		24.5%

Because Leverage changes with fluctuations in the Companys stock price, which occur 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 nine months ended September 30, 2007 is as follows (dollars in thousands):


NOI for Established Communities	$	330,964
NOI for Other Stabilized Communities		22,837
NOI for Development/Redevelopment Communities		43,778
NOI for discontinued operations		6,568

Total NOI generated by real estate assets		404,147
NOI on encumbered assets		67,919

NOI on unencumbered assets		336,228


Unencumbered NOI		83.2%

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 2007, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2006 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.

Development Communities are communities that are under construction and for which a final certificate of occupancy has not been received. These communities may be partially complete and operating.

Redevelopment Communities are communities where substantial redevelopment is in progress or is planned to begin during the current year. For wholly-owned communities, redevelopment is considered substantial when capital invested during the reconstruction effort is expected to exceed the lesser of $5,000,000 or 10% of the communitys acquisition cost. The definition of substantial redevelopment may differ for communities that are not wholly-owned.

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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