Exhibit 99.2

For Immediate News Release
November 5, 2008

AVALONBAY COMMUNITIES, INC. ANNOUNCES
THIRD QUARTER 2008 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended September 30, 2008 was $231,406,000. This resulted in Earnings per Share — diluted (“EPS”) of $2.98 for the quarter ended September 30, 2008, compared to $1.58 for the comparable period of 2007, a per share increase of 88.6%. For the nine months ended September 30, 2008, EPS was $5.20 compared to $2.74 for the comparable period of 2007, a per share increase of 89.8%. These increases are primarily attributable to gains from the sale of communities and year-over-year increases in community operating performance.

Funds from Operations attributable to common stockholders — diluted (“FFO”) for the quarter ended September 30, 2008 was $99,015,000, or $1.28 per share, compared to $95,302,000, or $1.19 per share, for the comparable period of 2007. FFO per share increased 7.6%, due primarily to year-over-year increases in community operating performance and capital markets activity.

FFO per share for the nine months ended September 30, 2008 increased by 8.9% to $3.78 from $3.47 for the comparable period of 2007. FFO per share for the nine months ended September 30, 2007 includes $0.01 related to the sale of a land parcel. Adjusting for this land sale, FFO per share increased 9.2%, driven primarily by year-over-year increases in community operating performance and capital markets activity.

Commenting on the Company’s results, Bryce Blair, Chairman and CEO, said, “Third Quarter results continue to show good earnings growth while we reduce operating, development, and capital risk. During 2008, we've sourced $1.8 billion of liquidity, including asset sales of $500 million. With access to cost effective capital funding a reduced level of development activity, we are well positioned to weather current challenging economic conditions.”

Operating Results for the Quarter Ended September 30, 2008 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $12,982,000, or 6.2% to $223,433,000. For Established Communities, rental revenue increased 2.7%, comprised of an increase in Average Rental Rates of 2.9% and a decrease in Economic Occupancy of 0.2%. As a result, total revenue for Established Communities increased $3,884,000 to $152,641,000. Operating expenses for Established Communities increased $1,844,000, or 3.8% to $49,985,000. Accordingly, Net Operating Income (“NOI”) for Established Communities increased by $2,040,000, or 2.0%, to $102,656,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the third quarter of 2007 to the third quarter of 2008:

3Q 08 Compared to 3Q 07
		Rental				Operating								% of
		Revenue				Expenses				NOI				NOI (1)
New England			1.9	%			(0.3	%)			2.5	%			20.4	%
Metro NY/NJ			2.3	%			6.0	%			0.7	%			26.4	%
Mid-Atlantic/Midwest			1.9	%			8.2	%			(1.9	%)			15.9	%
Pacific NW			4.1	%			0.9	%			5.3	%			4.6	%
No. California			5.2	%			0.7	%			6.9	%			21.9	%
So. California			1.4	%			4.8	%			0.0	%			10.8	%
Total			2.7	%			3.8	%			2.0	%			100.0	%

Operating Results for the Nine Months Ended September 30, 2008 Compared to the Prior Year

For the Company, including discontinued operations, total revenue increased by $50,740,000, or 8.3% to $661,436,000. For Established Communities, rental revenue increased 3.6%, comprised of an increase in Average Rental Rates of 3.5% and an increase in Economic Occupancy of 0.1%. As a result, total revenue for Established Communities increased $15,396,000 to $454,390,000, and operating expenses for Established Communities increased $3,528,000 or 2.5% to $144,114,000. Accordingly, NOI for Established Communities increased by $11,868,000 or 4.0% to $310,276,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities for the nine months ended September 30, 2008 as compared to the nine months ended September 30, 2007:

YTD 2008 Compared to YTD 2007
		Rental				Operating								% of
		Revenue				Expenses				NOI				NOI (1)
New England			2.8	%			1.3	%			3.1	%			20.3	%
Metro NY/NJ			2.7	%			5.0	%			1.7	%			25.3	%
Mid-Atlantic/Midwest			2.7	%			2.5	%			2.9	%			16.8	%
Pacific NW			6.0	%			0.1	%			8.4	%			4.6	%
No. California			6.6	%			(0.3	%)			9.1	%			22.3	%
So. California			2.2	%			5.5	%			0.9	%			10.7	%
Total			3.6	%			2.5	%			4.0	%			100.0	%

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 with concessions on a GAAP basis and Rental Revenue with Concessions on a Cash Basis for our Established Communities:

		3Q 08 vs				YTD 08 vs
		3Q 07				YTD 07
Rental Revenue Change with Concessions on a GAAP Basis			2.7	%			3.6	%
Rental Revenue Change with Concessions on a Cash Basis			2.3	%			3.4	%

Development and Redevelopment Activity

The Company completed the development of seven communities during the third quarter of 2008 totaling 2,150 apartment homes for an aggregate Total Capital Cost of $451,400,000:

	•		Avalon Danvers, located in Danvers, MA, is a mid-rise community containing 433 apartment homes that was completed for a Total Capital Cost of $83,900,000;
	•		Avalon Meydenbauer, located in Bellevue, WA, is a mid-rise community containing 368 apartment homes that was completed for a Total Capital Cost of $88,100,000;
	•		Avalon at Lexington Hills, located in Lexington, MA, is a garden-style community containing 387 apartment homes that was completed for a Total Capital Cost of $86,900,000;
	•		Avalon Warner Place, located in Canoga Park, CA, is a garden-style community containing 210 apartment homes that was completed for a Total Capital Cost of $53,100,000;
	•		Avalon Sharon, located in Sharon, MA, is a garden-style community containing 156 apartment homes that was completed for a Total Capital Cost of $30,300,000;
	•		Avalon Acton, located in Acton, MA, is a garden-style community containing 380 apartment homes that was completed for a Total Capital Cost of $67,900,000; and
	•		Avalon at Tinton Falls, located in Tinton Falls, NJ, is a garden-style community containing 216 apartment homes that was completed for a Total Capital Cost of $41,200,000.

The Company commenced the development of two communities during the third quarter of 2008: Avalon Walnut Creek, located in Walnut Creek, CA and Avalon Norwalk, located in Norwalk, CT. These two communities will contain an aggregate of 733 apartment homes when completed for an estimated Total Capital Cost of $246,000,000.

The Company completed the redevelopment of two communities in the third quarter of 2008: Avalon Fair Lakes, located in Fairfax, VA and Avalon Redmond Place, located in Redmond, WA. These two communities contain an aggregate of 642 apartment homes and were completed for an estimated Total Capital Cost of $11,400,000, excluding costs incurred prior to the start of redevelopment.

The Company commenced the redevelopment of The Promenade during the third quarter of 2008. The Promenade, located in Burbank, CA, contains 400 apartment homes and will be completed for an estimated Total Capital Cost of $23,400,000, excluding costs incurred prior to the start of redevelopment.

During the third quarter of 2008, the Company sold five communities containing an aggregate of 1,831 apartment homes for an aggregate sales price of $353,800,000: Avalon Landing, located in Annapolis, MD, Avalon Walk, located in Hamden, CT, Avalon at Pruneyard, located in Campbell, CA, Avalon Wynhaven, located in Issaquah, WA and Avalon at Blossom Hill,

located in San Jose, CA. These dispositions resulted in a gain in accordance with GAAP of approximately $183,711,000 and an Economic Gain of approximately $139,233,000. The weighted average Initial Year Market Cap Rate for these five communities was 5.2% and the Unleveraged IRR over an approximate 13-year holding period was 13.9%.

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 2008, the Company completed the redevelopment of South Hills Apartments, located in West Covina, CA and Avalon Cedar Place, located in Columbia, MD on behalf of the Fund. These two communities contain an aggregate of 241 apartment homes and were completed for a Total Capital Cost of $8,100,000, excluding costs incurred prior to the start of redevelopment.

On September 2, 2008, the Company announced the closing of AvalonBay Value Added Fund II, L.P. (“Fund II”), a private, discretionary investment vehicle with commitments from five institutional investors including the Company. Fund II has equity commitments totaling $333,000,000. The Company has committed $150,000,000 to Fund II, representing a 45% equity interest.

Fund II will acquire and operate multifamily apartment communities primarily in the Company’s current markets with the objective of creating value through redevelopment, enhanced operations and/or improving market fundamentals. Fund II will serve as the exclusive vehicle through which the Company will acquire apartment communities for a period of three years from the closing date or until 90% of its committed capital is invested, subject to limited exceptions. Fund II will not include or involve the Company’s development activities. The Company will receive, in addition to any returns on its invested equity, asset management fees, property management fees and redevelopment fees. The Company will also receive a promoted interest if certain return thresholds are satisfied. As of September 30, 2008, Fund II has not made any investments.

Financing, Liquidity and Balance Sheet Statistics

Through September 30, 2008 the Company has raised $1,500,247,000 through asset sales and debt issuance activity. The proceeds from these capital markets transactions have been used to fund development activity, redeem outstanding secured and unsecured debt and redeem common and preferred stock.

As of September 30, 2008, the Company had $25,000,000 outstanding under its $1,000,000,000 unsecured credit facility. At September 30, 2008, the Company had $286,679,000 in unrestricted cash and cash in escrow. The cash in escrow is available for development activity. Leverage, calculated as total debt as a percentage of Total Market Capitalization, was 30.8% at September 30, 2008. Unencumbered NOI for the nine months ended September 30, 2008 was 78.8% and Interest Coverage for the third quarter of 2008 was 4.1 times.

New Financing Activity

In July 2008, the Company closed variable rate bond financing relating to Avalon Walnut Creek in the aggregate amount of $135,000,000, of which $126,000,000 is tax-exempt. In addition, the Company closed an associated 4.0%, fixed rate construction loan of $2,500,000. The Company will use the bond proceeds for the development of Avalon Walnut Creek, which began construction in the third quarter of 2008, as mentioned previously.

Also in the third quarter of 2008, the Company executed rate lock agreements for two secured loans to be issued by Freddie Mac before the end of the fourth quarter. The total amount of debt in connection with these two loans is expected to be $114,149,000 with a weighted average interest rate per annum of 6.07%.

Debt Repayment Activity

In July 2008, the Company repaid $146,000,000 of unsecured notes with an annual interest rate of 8.25% pursuant to their scheduled maturity.

Also in July 2008, the Company repaid the loan secured by Avalon at Fairway Hills, located in Columbia, MD. The $11,500,000 variable-rate loan, which had an original maturity of June 2026, was repaid early at par.

In October 2008, the Company repaid the $4,368,000 6.99% fixed rate loan secured by a development right in Wheaton, MD pursuant to its scheduled maturity.

Preferred Stock Redemption

On October 15, 2008, the Company exercised its option to redeem all 4,000,000 outstanding shares of its 8.70% Series H Cumulative Redeemable Preferred Stock for $100,701,000. The repayment amount includes the redemption value of the outstanding shares of $25 per share and accrued but unpaid dividends through the redemption date. The Company will record a non-cash charge for deferred offering expenses of approximately $3,500,000 in the fourth quarter of 2008 related to this redemption.

Dividend Requirements

As a REIT, the Company is subject to certain dividend distribution requirements in relation to taxable income to avoid paying federal income taxes at the corporate level. During the first nine months of 2008, the Company sold ten communities, and expects the execution of additional sales prior to year end. These completed and projected sales will cause the Company’s 2008 taxable income to exceed qualifying distributions expected to be made in the normal course of business. To meet its distribution requirements and avoid paying federal income tax, the Company anticipates that a special, nonrecurring dividend in the range of approximately $1.75 per share to $1.85 per share would be required to be declared sometime before September 2009. The exact amount will depend on the final amount of taxable income (principally gains recognized from property sales) during 2008. The timing of the special dividend has not yet been determined. Depending on the amount and timing of the dividend, the Company may incur an excise tax for 2008 of between $0 and $9,000,000 pertaining to cumulative unpaid capital gain distributions related to 2008 property sales.

Fourth Quarter and Full Year 2008 Financial Outlook

For the fourth quarter of 2008, the Company expects EPS in the range of $1.42 to $1.46. The Company expects EPS for the full year 2008 to be in the range of $6.61 to $6.65. The full year 2008 range has been adjusted to reflect changes in the Company’s disposition program.

The Company expects Projected FFO per share in the range of $1.25 to $1.29 for the fourth quarter of 2008 and Projected FFO per share for the full year 2008 to be between $5.03 and $5.07. The Company’s estimates for fourth quarter and full year 2008 do not include the potential excise tax described above.

The Company expects to release its fourth quarter 2008 earnings on February 4, 2009 after the market closes. The Company expects to hold a conference call on February 5, 2009 at 1:00 PM EST to discuss the fourth quarter and full year 2008 results.

Fourth Quarter 2008 Conference/Event Schedule

The Company is tentatively scheduled to participate in the following conferences during the fourth quarter of 2008:

Upcoming Conference Schedule
Event/Conference		Date
2008 NAREIT Annual Convention		Nov. 19 - 21
Wachovia Real Estate Securities Conference		Dec. 9
Barclays Capital Real Estate Conference		TBD (Dec.)
Deutsche Bank Real Estate Outlook Conference		Jan. 15, 2009

The Company is scheduled to present and conduct a question and answer session at each of the conferences. Management may discuss the Company’s current operating environment; operating trends; development, redevelopment, disposition and acquisition activity; financial outlook and other business and financial matters affecting the Company. Details on how to access a webcast of each event and/or related materials will be available beginning November 6, 2008 on the Company’s website at http://www.avalonbay.com/events.

Other Matters

The Company will hold a conference call on November 6, 2008 at 10:30 AM EST 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 6, 2008 at 11:30 AM EST to November 13, 2008 at 11:59 PM EST, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 67017103.

A webcast of the conference call will also be available at http://www.avalonbay.com/earnings, and an on-line

playback of the webcast will be available for at least 30 days following the call.

The Company produces Earnings Release Attachments (the “Attachments”) that provide detailed information regarding operating, development, redevelopment, disposition and acquisition activity. These Attachments are considered a part of this earnings release and are available in full with this earnings release via the Company’s website at http://www.avalonbay.com/earnings. To receive future press releases via e-mail, please submit a request through http://www.avalonbay.com/pressrelease.

About AvalonBay Communities, Inc.

As of September 30, 2008, the Company owned or held a direct or indirect ownership interest in 177 apartment communities containing 50,034 apartment homes in ten states and the District of Columbia, of which 15 communities were under construction and seven 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 Company’s 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 Company’s 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: adverse capital and credit market conditions may affect our access to various sources of capital and/or cost of capital, which may affect our business activities, earnings and common stock price, among other things; 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 or 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 Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 under the headings “Risk Factors” and under the heading “Management’s 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 2008. 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 Company’s website at http://www.avalonbay.com/earnings.

THIRD QUARTER 2008

Supplemental Operating and Financial Data

Avalon Meydenbauer, located in downtown Bellevue, WA, contains 368 apartment homes and was completed in the third quarter of 2008 for a Total Capital Cost of $88.1 million. The community’s location in the revitalized urban center of Seattle’s Eastside places it within blocks of major shopping, dining and entertainment at both Lincoln Square and Bellevue Square. Major employers including Microsoft, Expedia and Yahoo are also located within walking distance of the community. The community’s location provides easy access to I-405 and is just a 30 minute drive to Seattle-Tacoma International Airport.

Avalon Meydenbauer offers luxury studios and 1, 2 and 3 bedroom apartment homes, featuring gourmet kitchens, washer and dryer, spacious closets and more. Community amenities include a state-of-the-art fitness center, direct access garage, clubhouse and residents’ lounge. A new upscale-concept Safeway grocery store with a full-scale Starbucks is contained within the ground floor of Avalon Meydenbauer.

THIRD QUARTER 2008

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 Company’s 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 Company’s filings with the Securities and Exchange Commission, including the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
September 30, 2008
(Dollars in thousands except per share data)
(unaudited)

		Q3				Q3								YTD				YTD
		2008				2007				% Change				2008				2007				% Change
Net income available to common stockholders		$	231,406			$	126,594				82.8	%		$	402,839			$	219,815				83.3	%
Per common share — basic		$	3.01			$	1.60				88.1	%		$	5.25			$	2.78				88.8	%
Per common share — diluted		$	2.98			$	1.58				88.6	%		$	5.20			$	2.74				89.8	%
Funds from Operations		$	99,015			$	95,302				3.9	%		$	292,984			$	278,459				5.2	%
Per common share — diluted		$	1.28			$	1.19				7.6	%		$	3.78			$	3.47				8.9	%
Dividends declared — common		$	68,820			$	66,934				2.8	%		$	206,278			$	202,402				1.9	%
Per common share		$	0.8925			$	0.85				5.0	%		$	2.6775			$	2.55				5.0	%
Common shares outstanding			77,109,737				78,746,272				(2.1	%)			77,109,737				78,746,272				(2.1	%)
Outstanding operating partnership units			64,019				64,019				0.0	%			64,019				64,019				0.0	%
Total outstanding shares and units			77,173,756				78,810,291				(2.1	%)			77,173,756				78,810,291				(2.1	%)
Average shares outstanding — basic			76,833,942				78,962,615				(2.7	%)			76,754,096				78,942,370				(2.8	%)
Average operating partnership units outstanding			64,019				89,505				(28.5	%)			64,019				119,960				(46.6	%)
Effect of dilutive securities			682,886				972,594				(29.8	%)			698,107				1,133,578				(38.4	%)
Average shares outstanding — diluted			77,580,847				80,024,714				(3.1	%)			77,516,222				80,195,908				(3.3	%)

						% of Total				Average
						Market				Interest				Remaining
Debt Composition (1)		Amount				Cap				Rate (2)				Maturities (1)
Conventional Debt															2008			$	6,494
Long-term, fixed rate		$	2,259,881				20.3	%							2009			$	255,391
Long-term, variable rate			442,351				4.0	%							2010			$	347,258
Variable rate facility (3)			25,000				0.2	%							2011			$	503,507
Subtotal, Conventional			2,727,232				24.5	%			5.9	%			2012			$	516,006
Tax-Exempt Debt
Long-term, fixed rate			167,470				1.5	%
Long-term, variable rate			534,738				4.8	%
Subtotal, Tax-Exempt			702,208				6.3	%			5.4	%
Total Debt		$	3,429,440				30.8	%			5.8	%

										Non-Rev
		Cap				Cap				Capex
		Interest				Overhead				per Home
Q308		$	18,803			$	7,753			$	132
Q208		$	19,159			$	7,590			$	42
Q108		$	19,663			$	7,159			$	4
Q407		$	20,099			$	7,180			$	251
Q307		$	19,193			$	7,008			$	93

						Apartment
		Communities				Homes
Current Communities			162				45,641
Development Communities			15				4,393
Development Rights			43				12,431

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
September 30, 2008
(Dollars in thousands except per share data)
(unaudited)

		Q3				Q3								YTD				YTD
		2008				2007				% Change				2008				2007				% Change
Revenue:
Rental and other income		$	216,870			$	195,042				11.2	%		$	629,050			$	561,690				12.0	%
Management, development and other fees			1,622				1,490				8.9	%			4,805				4,421				8.7	%
Total			218,492				196,532				11.2	%			633,855				566,111				12.0	%
Operating expenses:
Direct property operating expenses, excluding property taxes			53,772				46,218				16.3	%			149,359				133,773				11.7	%
Property taxes			19,021				17,957				5.9	%			57,036				51,973				9.7	%
Property management and other indirect operating expenses			9,689				10,792				(10.2	%)			30,257				27,938				8.3	%
Investments and investment management (1)			1,944				1,625				19.6	%			6,687				6,133				9.0	%
Total			84,426				76,592				10.2	%			243,339				219,817				10.7	%
Interest expense, net			(28,364	)			(24,331	)			16.6	%			(85,622	)			(68,993	)			24.1	%
General and administrative expense			(9,318	)			(6,645	)			40.2	%			(26,821	)			(20,067	)			33.7	%
Joint venture income and minority interest expense (2)			1,190				(388	)			(406.7	%)			4,813				(1,576	)			(405.4	%)
Depreciation expense			(49,397	)			(42,892	)			15.2	%			(142,986	)			(123,967	)			15.3	%
Gain on sale of land			—				—				—				—				545				(100.0	%)
Income from continuing operations			48,177				45,684				5.5	%			139,900				132,236				5.8	%
Income from discontinued operations (3)			1,693				4,827				(64.9	%)			11,614				15,846				(26.7	%)
Gain on sale of communities			183,711				78,258				134.8	%			257,850				78,258				229.5	%
Total discontinued operations			185,404				83,085				123.1	%			269,464				94,104				186.3	%
Net income			233,581				128,769				81.4	%			409,364				226,340				80.9	%
Dividends attributable to preferred stock			(2,175	)			(2,175	)			—				(6,525	)			(6,525	)			—
Net income available to common stockholders		$	231,406			$	126,594				82.8	%		$	402,839			$	219,815				83.3	%
Net income per common share — basic		$	3.01			$	1.60				88.1	%		$	5.25			$	2.78				88.8	%
Net income per common share — diluted		$	2.98			$	1.58				88.6	%		$	5.20			$	2.74				89.8	%

		Q3				Q3				YTD				YTD
		2008				2007				2008				2007
Rental income		$	4,941			$	13,919			$	27,581			$	44,585
Operating and other expenses			(2,054	)			(4,962	)			(9,144	)			(15,182	)
Interest expense, net			(236	)			(942	)			(1,312	)			(2,977	)
Depreciation expense			(958	)			(3,188	)			(5,511	)			(10,580	)
Income from discontinued operations (4)		$	1,693			$	4,827			$	11,614			$	15,846

Attachment 3

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

		September 30,				December 31,
		2008				2007
Real estate		$	6,592,041			$	5,951,325
Less accumulated depreciation			(1,301,648	)			(1,158,899	)
Net operating real estate			5,290,393				4,792,426
Construction in progress, including land			882,464				946,814
Land held for development			325,472				288,423
Operating real estate assets held for sale, net			28,701				269,519
Total real estate, net			6,527,030				6,297,182
Cash and cash equivalents			79,019				20,271
Cash in escrow			207,660				188,264
Resident security deposits			32,863				29,240
Other assets (1)			244,625				201,527
Total assets		$	7,091,197			$	6,736,484
Unsecured notes, net		$	2,017,815			$	1,893,499
Unsecured facility			25,000				514,500
Notes payable			1,384,440				750,062
Resident security deposits			42,606				39,938
Liabilities related to assets held for sale			25,448				57,666
Other liabilities			368,560				431,013
Total liabilities		$	3,863,869			$	3,686,678
Minority interest			16,689				23,152
Stockholders’ equity			3,210,639				3,026,654
Total liabilities and stockholders’ equity		$	7,091,197			$	6,736,484

Attachment 4

AvalonBay Communities, Inc.
Quarterly Revenue and Occupancy Changes — Established Communities (1)
September 30, 2008

		Apartment Homes				Average Rental Rates (2)												Economic Occupancy												Rental Revenue ($000’s)(3)
						Q3 08				Q3 07				% Change				Q3 08				Q3 07				% Change				Q3 08				Q3 07				% Change
New England
Boston, MA			3,067			$	2,043			$	1,986				2.9	%			96.5	%			96.1	%			0.4	%		$	18,145			$	17,571				3.3	%
Fairfield-New Haven, CT			2,284				2,098				2,073				1.2	%			96.2	%			97.3	%			(1.1	%	)		13,829				13,812				0.1	%
New England Average			5,351				2,066				2,023				2.1	%			96.4	%			96.6	%			(0.2	%)			31,974				31,383				1.9	%
Metro NY/NJ
New Jersey			2,422				2,209				2,130				3.7	%			95.5	%			97.3	%			(1.8	%	)		15,334				15,055				1.9	%
New York, NY			1,730				2,570				2,508				2.5	%			97.4	%			97.0	%			0.4	%			12,994				12,627				2.9	%
Long Island, NY			1,157				2,454				2,414				1.7	%			94.8	%			94.3	%			0.5	%			8,074				7,904				2.2	%
Metro NY/NJ Average			5,309				2,380				2,315				2.8	%			96.0	%			96.5	%			(0.5	%	)		36,402				35,586				2.3	%
Mid-Atlantic/Midwest
Washington Metro			5,635				1,786				1,763				1.3	%			96.6	%			96.2	%			0.4	%			29,157				28,659				1.7	%
Chicago, IL			487				1,461				1,420				2.9	%			96.3	%			95.6	%			0.7	%			2,055				1,983				3.6	%
Mid-Atlantic/Midwest Average			6,122				1,760				1,733				1.6	%			96.5	%			96.2	%			0.3	%			31,212				30,642				1.9	%
Pacific Northwest
Seattle, WA			1,320				1,430				1,359				5.2	%			95.9	%			97.0	%			(1.1	%	)		5,431				5,217				4.1	%
Pacific Northwest Average			1,320				1,430				1,359				5.2	%			95.9	%			97.0	%			(1.1	%	)		5,431				5,217				4.1	%
Northern California
San Jose, CA			3,094				1,947				1,834				6.2	%			96.8	%			97.0	%			(0.2	%	)		17,498				16,506				6.0	%
San Francisco, CA			1,608				2,212				2,096				5.5	%			96.3	%			97.2	%			(0.9	%	)		10,280				9,825				4.6	%
Oakland-East Bay, CA			955				1,576				1,511				4.3	%			96.7	%			97.7	%			(1.0	%	)		4,366				4,227				3.3	%
Northern California Average			5,657				1,960				1,854				5.7	%			96.6	%			97.1	%			(0.5	%	)		32,144				30,558				5.2	%
Southern California
Los Angeles, CA			1,198				1,711				1,684				1.6	%			94.8	%			96.6	%			(1.8	%	)		5,833				5,845				(0.2	%)
Orange County, CA			1,174				1,484				1,474				0.7	%			95.2	%			95.3	%			(0.1	%	)		4,977				4,948				0.6	%
San Diego, CA			1,058				1,505				1,460				3.1	%			96.3	%			94.9	%			1.4	%			4,593				4,396				4.5	%
Southern California Average			3,430				1,569				1,543				1.7	%			95.4	%			95.7	%			(0.3	%	)		15,403				15,189				1.4	%
Average/Total Established			27,189			$	1,943			$	1,888				2.9	%			96.3	%			96.5	%			(0.2	%	)	$	152,566			$	148,575				2.7	%

Attachment 5

AvalonBay Communities, Inc.
*Sequential Quarterly* Revenue and Occupancy Changes — Established Communities (1)
September 30, 2008

		Apartment
		Homes				Average Rental Rates (2)												Economic Occupancy												Rental Revenue ($000’s)
						Q3 08				Q2 08				% Change				Q3 08				Q208				% Change				Q3 08				Q2 08				% Change
New England
Boston, MA			3,067			$	2,043			$	2,030				0.6	%			96.5	%			97.1	%			(0.6	%)		$	18,145			$	18,141				0.0	%
Fairfield-New Haven, CT			2,284				2,098				2,090				0.4	%			96.2	%			96.3	%			(0.1	%)			13,829				13,794				0.3	%
New England Average			5,351				2,066				2,057				0.4	%			96.4	%			96.8	%			(0.4	%)			31,974				31,935				0.1	%
Metro NY/NJ
New Jersey			2,422				2,209				2,183				1.2	%			95.5	%			96.1	%			(0.6	%)			15,334				15,245				0.6	%
New York, NY			1,730				2,570				2,540				1.2	%			97.4	%			97.5	%			(0.1	%)			12,994				12,849				1.1	%
Long Island, NY			1,157				2,454				2,423				1.3	%			94.8	%			96.1	%			(1.3	%)			8,074				8,081				(0.1	%)
Metro NY/NJ Average			5,309				2,380				2,352				1.2	%			96.0	%			96.6	%			(0.6	%)			36,402				36,175				0.6	%
Mid-Atlantic/Midwest
Washington Metro			5,635				1,786				1,782				0.2	%			96.6	%			97.0	%			(0.4	%)			29,157				29,214				(0.2	%)
Chicago, IL			487				1,461				1,442				1.3	%			96.3	%			95.6	%			0.7	%			2,055				2,015				2.0	%
Mid-Atlantic/Midwest Average			6,122				1,760				1,755				0.3	%			96.5	%			96.9	%			(0.4	%)			31,212				31,229				(0.1	%)
Pacific Northwest
Seattle, WA			1,320				1,430				1,416				1.0	%			95.9	%			95.4	%			0.5	%			5,431				5,351				1.5	%
Pacific Northwest Average			1,320				1,430				1,416				1.0	%			95.9	%			95.4	%			0.5	%			5,431				5,351				1.5	%
Northern California
San Jose, CA			3,094				1,947				1,920				1.4	%			96.8	%			96.5	%			0.3	%			17,498				17,202				1.7	%
San Francisco, CA			1,608				2,212				2,186				1.2	%			96.3	%			96.6	%			(0.3	%)			10,280				10,185				0.9	%
Oakland-East Bay, CA			955				1,576				1,570				0.4	%			96.7	%			95.9	%			0.8	%			4,366				4,316				1.2	%
Northern California Average			5,657				1,960				1,936				1.2	%			96.6	%			96.5	%			0.1	%			32,144				31,703				1.4	%
Southern California
Los Angeles, CA			1,198				1,711				1,710				0.1	%			94.8	%			95.3	%			(0.5	%)			5,833				5,861				(0.5	%)
Orange County, CA			1,174				1,484				1,484				0.0	%			95.2	%			95.8	%			(0.6	%)			4,977				5,006				(0.6	%)
San Diego, CA			1,058				1,505				1,479				1.8	%			96.3	%			94.9	%			1.4	%			4,593				4,458				3.0	%
Southern California Average			3,430				1,569				1,562				0.4	%			95.4	%			95.3	%			0.1	%			15,403				15,325				0.5	%
Average/Total Established			27,189			$	1,943			$	1,928				0.8	%			96.3	%			96.5	%			(0.2	%)		$	152,566			$	151,718				0.6	%

Attachment 6

AvalonBay Communities, Inc.
Year-to-Date Revenue and Occupancy Changes — Established Communities (1)
September 30, 2008

		Apartment
		Homes				Average Rental Rates (2)												Economic Occupancy												Rental Revenue ($000’s)
						YTD08				YTD07				% Change				YTD08				YTD07				% Change				YTD 08				YTD 07				% Change
New England
Boston, MA			3,067			$	2,025			$	1,974				2.6	%			96.7	%			95.9	%			0.8	%		$	54,077			$	52,283				3.4	%
Fairfield-New Haven, CT			2,284				2,083				2,042				2.0	%			96.4	%			96.4	%			0.0	%			41,276				40,471				2.0	%
New England Average			5,351				2,050				2,003				2.3	%			96.6	%			96.1	%			0.5	%			95,353				92,754				2.8	%
Metro NY/NJ
New Jersey			2,422				2,193				2,102				4.3	%			95.8	%			96.7	%			(0.9	%)			45,786				44,293				3.4	%
New York, NY			1,730				2,536				2,481				2.2	%			97.2	%			96.7	%			0.5	%			38,379				37,352				2.7	%
Long Island, NY			1,157				2,422				2,390				1.3	%			95.6	%			95.5	%			0.1	%			24,111				23,767				1.4	%
Metro NY/NJ Average			5,309				2,355				2,288				2.9	%			96.2	%			96.4	%			(0.2	%)			108,276				105,412				2.7	%
Mid-Atlantic/Midwest
Washington Metro			5,635				1,777				1,743				2.0	%			96.5	%			95.8	%			0.7	%			86,998				84,696				2.7	%
Chicago, IL			487				1,441				1,410				2.2	%			96.3	%			95.3	%			1.0	%			6,079				5,892				3.2	%
Mid-Atlantic/Midwest
Average			6,122				1,751				1,717				2.0	%			96.5	%			95.8	%			0.7	%			93,077				90,588				2.7	%
Pacific Northwest
Seattle, WA			1,320				1,415				1,327				6.6	%			95.7	%			96.3	%			(0.6	%)			16,097				15,185				6.0	%
Pacific Northwest Average			1,320				1,415				1,327				6.6	%			95.7	%			96.3	%			(0.6	%)			16,097				15,185				6.0	%
Northern California
San Jose, CA			3,094				1,919				1,785				7.5	%			96.8	%			97.2	%			(0.4	%)			51,720				48,288				7.1	%
San Francisco, CA			1,608				2,183				2,060				6.0	%			96.7	%			96.3	%			0.4	%			30,559				28,733				6.4	%
Oakland-East Bay, CA			955				1,569				1,481				5.9	%			96.5	%			97.5	%			(1.0	%)			13,016				12,412				4.9	%
Northern California Average			5,657				1,935				1,812				6.8	%			96.7	%			96.9	%			(0.2	%)			95,295				89,433				6.6	%
Southern California
Los Angeles, CA			1,198				1,706				1,661				2.7	%			95.6	%			95.9	%			(0.3	%)			17,586				17,167				2.4	%
Orange County, CA			1,174				1,485				1,454				2.1	%			95.9	%			96.1	%			(0.2	%)			15,041				14,762				1.9	%
San Diego, CA			1,058				1,485				1,453				2.2	%			95.2	%			95.3	%			(0.1	%)			13,467				13,190				2.1	%
Southern California Average			3,430				1,562				1,526				2.4	%			95.6	%			95.8	%			(0.2	%)			46,094				45,119				2.2	%
Average/Total Established			27,189			$	1,926			$	1,861				3.5	%			96.4	%			96.3	%			0.1	%		$	454,192			$	438,491				3.6	%