April 29, 2009 - EX-99.2 - 8-K: Current report filing | AvalonBay Communities, Inc. (AVB)

Exhibit 99.2

For Immediate News Release
April 29, 2009

AVALONBAY COMMUNITIES, INC. ANNOUNCES
FIRST QUARTER 2009 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Attributable to Company Common Stockholders (Net Income) for the quarter ended March 31, 2009 was $47,425,000. This resulted in Earnings per Share diluted (EPS) of $0.59 for the quarter ended March 31, 2009, compared to EPS of $0.60 for the comparable period of 2008, a decrease of 1.7%.

Funds from Operations attributable to common stockholders diluted (FFO) for the quarter ended March 31, 2009 increased 2.4% to $1.27 per share from $1.24 per share for the comparable period of 2008.

FFO and Net Income for the quarter ended March 31, 2009 include the following non-routine items:

			Incremental earnings due primarily to the recognition of the Companys promoted interest in a joint venture of $3,894,000, or $0.05 per share; and

			a gain of $1,062,000, or $0.01 per share from purchasing medium-term notes at a discount prior to the scheduled maturity.

In addition, the period-over-period results are impacted by the 2,627,000 additional shares issued in January 2009 as part of the special dividend declared in the fourth quarter of 2008.

Commenting on the Companys results, Bryce Blair, Chairman and CEO, said: Portfolio operations performed largely as expected. The closing of our $740 million secured facility, the final closing of our $400 million acquisition fund and the reduction in our development activity all strengthen our liquidity and provide capital to pursue emerging investment opportunities. While accelerated job losses during the quarter will likely affect future rental demand, a strong balance sheet and access to cost effective capital help mitigate the overall financial impact.

Operating Results for the Quarter Ended March 31, 2009 Compared to the Prior Year Period

For the Company, including discontinued operations, total revenue increased by $3,491,000, or 1.6% to $219,679,000. For Established Communities, rental revenue decreased 0.7% due to a decrease in Economic Occupancy of 0.9%, partially offset by an increase in Average Rental Rates of 0.2%. As a result, total revenue for Established Communities decreased $1,053,000 to $158,072,000. Operating expenses for Established Communities increased $1,197,000, or 2.4% to $52,046,000. Accordingly, Net Operating Income (NOI) for Established Communities decreased by $2,250,000, or 2.1% to $106,026,000.

The following table reflects the percentage changes in rental revenue, operating expenses and NOI for Established Communities from the first quarter of 2008 to the first quarter of 2009:



1Q 09 Compared to 1Q 08

	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
New England		(2.2%	)		(1.0%	)		(2.8%	)		19.4%
Metro NY/NJ		(1.5%	)		4.4%			(4.2%	)		26.3%
Mid-Atlantic/Midwest		0.8%			3.3%			(0.6%	)		16.7%
Pacific NW		0.6%			0.9%			0.4%			4.9%
No. California		1.6%			1.5%			1.7%			21.5%
So. California		(2.7%	)		4.9%			(5.6%	)		11.2%

Total		(0.7%	)		2.4%			(2.1%	)		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. Both Rental Revenue with Concessions on a Cash Basis and on a GAAP basis for our Established Communities for the first quarter of 2009 decreased by 0.7% from the prior year period.

Development Activity

During the first quarter of 2009, the Company completed the development of two communities: Avalon Morningside Park, located in New York, NY and Avalon at the Hingham Shipyard, located in Hingham, MA. These communities contain an aggregate 530 apartment homes and were completed for an aggregate Total Capital Cost of $172,500,000.

Investment Management Fund Activity

The Company currently has investments in and serves as the manager for two private, discretionary investment management vehicles.

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%.

AvalonBay Value Added Fund II, L.P. (Fund II) is a private, discretionary investment vehicle with commitments from five institutional investors. In addition, the Company is an investor in Fund II.

As of March 31, 2009, Fund II equity commitments totaled $333,000,000, of which the Company committed $150,000,000, representing a 45% equity interest. As of March 31, 2009, no capital was contributed to Fund II and no investments were made.

In April 2009, the Company announced the second and final closing of Fund II. In this closing, total equity commitments to Fund II increased by $67,000,000 as a result of the following:

			a new institutional investor made an equity commitment of $75,000,000;

			an existing institutional investor increased its commitment by $17,000,000, based on terms of its existing commitment; and

			the Company decreased its commitment by $25,000,000, based on terms of its existing commitment, decreasing the Companys equity interest to approximately 31%.

With the final closing, Fund II equity commitments now total $400,000,000 (including the Companys $125,000,000 commitment). Fund II can employ leverage of up to 65%, allowing for an investment capacity of approximately $1,100,000,000.

Financing, Liquidity and Balance Sheet Statistics

At March 31, 2009, $359,000,000 was outstanding under the Companys $1,000,000,000 unsecured credit facility and the Company had $259,990,000 in unrestricted cash and cash in escrow. The cash in escrow is available for development activity. Unencumbered NOI as a percentage of total NOI generated by real estate assets for the first quarter of 2009 was 77%. Interest Coverage for the first quarter of 2009 was 4.4 times.

New Financing Activity

In April 2009, the Company completed a 5.86% fixed rate, pooled secured financing transaction for aggregate borrowing of $741,140,000. The financing consists of fourteen separate mortgage loans each with a 10-year term. Each loan provides for payment of interest only during the first and second years of the loan term, with payment of principal and interest (based on a 30 year amortization schedule) thereafter and the remaining principal amount and any unpaid interest due at maturity on the tenth anniversary.

Debt Repayment Activity

In January 2009, the Company made a cash tender offer for any and all of its 7.5% medium-term notes due in August 2009 and December 2010. The Company purchased at par $37,438,000 principal amount of its $150,000,000, 7.5% medium-term notes due in August 2009. In addition, the Company purchased $64,423,000 principal amount of its $200,000,000, 7.5% medium-term notes due December 2010, at 98% of par, recording a gain of $1,062,000. All of the notes purchased in the tender offer were cancelled.

Second Quarter 2009 Financial Outlook

For the second quarter of 2009, the Company expects EPS in the range of $0.49 to $0.53 and expects Projected FFO per share in the range of $1.16 to $1.20.

The Company expects to release its second quarter 2009 earnings on July 29, 2009 after the market closes. The Company expects to hold a conference call on July 30, 2009 at 1:00 PM EDT to discuss the second quarter 2009 results.

Second Quarter 2009 Conference/Event Schedule

The Company is scheduled to participate in the NAREIT Institutional Investor Forum from June 3-5, 2009. The Company will present and conduct a question and answer session at the conference. Management may discuss the Companys current operating environment; operating trends; development, redevelopment, disposition and acquisition activity; financial outlook and other business and financial matters affecting the Company. Details on how to access related materials will be

available beginning June 1, 2009 on the Companys website at http://www.avalonbay.com/events.

Other Matters

The Company will hold a conference call on April 30, 2009 at 1:00 PM EDT to review and answer questions about this release, its first quarter results, the Attachments (described below) and related matters. To participate on the call, dial 1-877-510-2397 domestically and 1-763-416-6924 internationally.

To hear a replay of the call, which will be available from April 30, 2009 at 2:00 PM EDT to May 6, 2009 at 11:59 PM EDT, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 92862758.

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. To receive future press releases via e-mail, please submit a request through http://www.avalonbay.com/email.

About AvalonBay Communities, Inc.

As of March 31, 2009, the Company owned or held a direct or indirect ownership interest in 173 apartment communities containing 50,291 apartment homes in ten states and the District of Columbia, of which 12 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 Companys website at 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: 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 Companys filings with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2008 under the headings Risk Factors and under the heading Managements Discussion and Analysis of Financial Condition and Results of Operations Forward-Looking Statements.

The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the second quarter of 2009. 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 13, Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms. Attachment 13 is included in the full earnings release available at the Companys website at http://www.avalonbay.com/earnings.

FIRST QUARTER 2009

Supplemental Operating and Financial Data

Avalon Sharon, located in Sharon, MA, contains 156 apartment homes and was completed in the third quarter of 2008 for a Total Capital Cost of $30.3 million. The community is located in one of Bostons most desirable south suburban towns with direct access to I-95 and easy access to two commuter rails stations. Although located in a dense residential area, the community is surrounded by a buffer of mature trees and conservation land, providing a peaceful and unique setting.

FIRST QUARTER 2009

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

Development, Redevelopment, Acquisition and Disposition Profile
Summary of Development and Redevelopment Activity		Attachment 6
Development Communities		Attachment 7
Redevelopment Communities		Attachment 8
Summary of Development and Redevelopment Community Activity		Attachment 9
Future Development		Attachment 10
Unconsolidated Real Estate Investments		Attachment 11
Summary of Disposition Activity		Attachment 12

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

The following is a Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Section 27A of the Securities Act of 1933 as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The projections and estimates contained in the following attachments are forward-looking statements that involve risks and uncertainties, and actual results may differ materially from those projected in such statements. Risks associated with the Companys development, redevelopment, construction, and lease-up activities, which could impact the forward-looking statements made are discussed in the paragraph titled Forward-Looking Statements in the release to which these attachments relate. In particular, development opportunities may be abandoned; Total Capital Cost of a community may exceed original estimates, possibly making the community uneconomical and/or affecting projected returns; construction and lease-up may not be completed on schedule, resulting in increased debt service and construction costs; and other risks described in the Companys filings with the Securities and Exchange Commission, including the Companys Annual Report on Form 10-K for the fiscal year ended December 31, 2008.

Attachment 1

AvalonBay Communities, Inc.
Selected Operating and Other Information
March 31, 2009
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q1		Q1
	2009		2008 (1)		$ Change			% Change
Net Income attributable to Company common stockholders	$	47,425	$	46,275	$	1,150			2.5	%

Per common share basic	$	0.60	$	0.60	$				0.0	%
Per common share diluted	$	0.59	$	0.60	$	(0.01	)		(1.7	%)

Funds from Operations	$	100,975	$	96,117	$	4,858			5.1	%
Per common share diluted	$	1.27	$	1.24	$	0.03			2.4	%

Dividends declared common	$	71,292	$	68,697	$	2,595			3.8	%
Per common share	$	0.8925	$	0.8925	$				0.0	%

Common shares outstanding		79,879,306		76,971,919		2,907,387			3.8	%
Outstanding operating partnership units		19,427		64,019		(44,592	)		(69.7	%)

Total outstanding shares and units		79,898,733		77,035,938		2,862,795			3.7	%


Average shares outstanding basic		79,005,998		76,941,176		2,064,822			2.7	%

Weighted shares basic		78,752,744		76,600,201		2,152,543			2.8	%
Average operating partnership units outstanding		19,427		64,019		(44,592	)		(69.7	%)
Effect of dilutive securities		1,020,110		776,672		243,438			31.3	%

Average shares outstanding diluted		79,792,281		77,440,892		2,351,389			3.0	%

DEBT COMPOSITION AND MATURITIES


			Average
			Interest			Remaining
Debt Composition (2)	Amount		Rate (3)			Maturities (2)
Conventional Debt							2009	$	266,181
Long-term, fixed rate	$	2,303,013					2010	$	281,791
Long-term, variable rate		440,476					2011	$	502,219
Variable rate facilities (4)		359,000					2012	$	514,337

Subtotal, Conventional		3,102,489		5.1	%		2013	$	422,120


Tax-Exempt Debt
Long-term, fixed rate		165,754
Long-term, variable rate		535,106

Subtotal, Tax-Exempt		700,860		3.0	%


Total Debt	$	3,803,349		4.7	%

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home
Q109	$	12,368	$	6,507	$	8
Q408	$	16,996	$	7,836	$	290
Q308	$	18,803	$	7,753	$	132
Q208	$	19,159	$	7,590	$	42
Q108	$	19,663	$	7,159	$	4

COMMUNITY INFORMATION


			Apartment
	Communities		Homes
Current Communities		161		46,256
Development Communities		12		4,035
Development Rights		28		7,370


⁽¹⁾		Amounts reflect the impact of including unvested restricted shares upon adoption of FASB Staff Position EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities.

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

⁽³⁾		Includes costs of financing such as credit enhancement fees, trustees fees, etc.

⁽⁴⁾		Represents the Companys $1 billion unsecured credit facility, of which $359 million was drawn at March 31, 2009.

Attachment 2

AvalonBay Communities, Inc.
Detailed Operating Information
March 31, 2009
(Dollars in thousands except per share data)
(unaudited)


	Q1			Q1
	2009			2008			% Change
Revenue:
Rental and other income	$	218,015		$	202,535			7.6	%
Management, development and other fees		1,468			1,638			(10.4	%)

Total		219,483			204,173			7.5	%


Operating expenses:
Direct property operating expenses, excluding property taxes		53,093			47,937			10.8	%
Property taxes		21,716			18,997			14.3	%
Property management and other indirect operating expenses		10,043			10,097			(0.5	%)

Total operating expenses		84,852			77,031			10.2	%


Interest expense, net		(29,157	)		(27,661	)		5.4	%
General and administrative expense		(7,247	)		(8,119	)		(10.7	%)
Joint venture income		3,457			34			N/A
Investments and investment management expense		(916	)		(1,219	)		(24.9	%)
Expensed development and other pursuit costs		(1,093	)		(500	)		118.6	%
Depreciation expense		(52,627	)		(45,941	)		14.6	%

Income from continuing operations		47,048			43,736			7.6	%
Income from discontinued operations (1)		53			4,820			(98.9	%)

Total discontinued operations		53			4,820			(98.9	%)

Net income		47,101			48,556			(3.0	%)
Net income (expense) attributable to redeemable noncontrolling interests		324			(106	)		(405.7	%)

Net income attributable to the Company		47,425			48,450			(2.1	%)
Dividends attributable to preferred stock					(2,175	)		(100.0	%)

Net income attributable to Company common stockholders	$	47,425		$	46,275			2.5	%

Net income attributable to the Company per common share basic	$	0.60		$	0.60			0.0	%

Net income attributable to the Company per common share diluted	$	0.59		$	0.60			(1.7	%)


(1)		Reflects net income for investments in real estate classified as discontinued operations as of March 31, 2009 and investments in real estate sold during the period from January 1, 2008 through March 31, 2009. The following table details income from discontinued operations for the periods shown:


	Q1			Q1
	2009			2008
Rental income	$	196		$	12,015
Operating and other expenses		(42	)		(3,814	)
Interest expense, net		(88	)		(530	)
Depreciation expense		(13	)		(2,851	)

Income from discontinued operations (2)	$	53		$	4,820

(2)

NOI for discontinued operations totaled $154 and $8,201 for the three months ended March 31, 2009 and March 31, 2008 respectively, of which $154 and $0 relate to assets classified as held for sale.

Attachment 3

AvalonBay Communities, Inc.
Condensed Consolidated Balance Sheets

(Dollars in thousands)
(unaudited)


	March 31,			December 31,
	2009			2008
Real estate	$	7,069,703		$	6,887,917
Less accumulated depreciation		(1,405,309	)		(1,352,744	)

Net operating real estate		5,664,394			5,535,173

Construction in progress, including land		816,950			867,061
Land held for development		248,998			239,456
Operating real estate assets held for sale, net		8,041			8,053


Total real estate, net		6,738,383			6,649,743

Cash and cash equivalents		90,335			65,706
Cash in escrow		169,655			193,373
Resident security deposits		28,856			29,935
Other assets (1)		246,213			235,596


Total assets	$	7,273,442		$	7,174,353


Unsecured notes, net	$	1,901,101		$	2,002,965
Unsecured facilities		359,000			124,000
Notes payable		1,541,210			1,543,317
Resident security deposits		39,792			40,603
Liabilities related to assets held for sale		4,326			4,340
Other liabilities		380,369			532,779


Total liabilities	$	4,225,798		$	4,248,004


Redeemable noncontrolling interest		6,281			10,234

Total stockholders equity		3,041,363			2,916,115


Total liabilities and stockholders equity	$	7,273,442		$	7,174,353


⁽¹⁾		Other assets includes $716 and $659 relating to assets classified as held for sale as of March 31, 2009 and December 31, 2008, respectively.

Attachment 4

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

March 31, 2009


	Apartment		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000s) (3)
	Homes		Q1 09		Q1 08		% Change			Q1 09			Q1 08			% Change			Q1 09		Q1 08		% Change
New England
Boston, MA		3,289	$	1,982	$	1,945		1.9	%		94.9	%		96.6	%		(1.7	%)	$	18,571	$	18,529		0.2	%
Fairfield-New Haven, CT		2,518		1,972		2,021		(2.4	%)		94.0	%		96.7	%		(2.7	%)		13,999		14,759		(5.1	%)

New England Average		5,807		1,978		1,979		(0.1	%)		94.5	%		96.6	%		(2.1	%)		32,570		33,288		(2.2	%)


Metro NY/NJ
New Jersey		2,750		2,129		2,188		(2.7	%)		95.5	%		95.6	%		(0.1	%)		16,783		17,265		(2.8	%)
New York, NY		1,936		2,679		2,652		1.0	%		95.7	%		96.2	%		(0.5	%)		14,883		14,813		0.5	%
Long Island, NY		1,621		2,311		2,296		0.7	%		93.4	%		96.3	%		(2.9	%)		10,500		10,741		(2.2	%)

Metro NY/NJ Average		6,307		2,345		2,357		(0.5	%)		95.0	%		96.0	%		(1.0	%)		42,166		42,819		(1.5	%)


Mid-Atlantic/Midwest
Washington Metro		5,787		1,730		1,725		0.3	%		96.7	%		96.0	%		0.7	%		29,035		28,747		1.0	%
Chicago, IL		896		1,460		1,452		0.6	%		95.5	%		97.1	%		(1.6	%)		3,747		3,786		(1.0	%)

Mid-Atlantic/Midwest Average		6,683		1,694		1,687		0.4	%		96.5	%		96.1	%		0.4	%		32,782		32,533		0.8	%


Pacific Northwest
Seattle, WA		1,943		1,339		1,314		1.9	%		94.5	%		95.8	%		(1.3	%)		7,377		7,331		0.6	%

Pacific Northwest Average		1,943		1,339		1,314		1.9	%		94.5	%		95.8	%		(1.3	%)		7,377		7,331		0.6	%


Northern California
San Jose, CA		2,734		1,985		1,935		2.6	%		96.7	%		97.0	%		(0.3	%)		15,745		15,398		2.3	%
San Francisco, CA		1,170		2,347		2,306		1.8	%		96.8	%		97.3	%		(0.5	%)		7,977		7,878		1.3	%
Oakland-East Bay, CA		720		1,571		1,568		0.2	%		96.1	%		96.8	%		(0.7	%)		3,262		3,280		(0.5	%)

Northern California Average		4,624		2,012		1,973		2.0	%		96.7	%		97.1	%		(0.4	%)		26,984		26,556		1.6	%


Southern California
Los Angeles, CA		1,447		1,661		1,685		(1.4	%)		93.1	%		96.8	%		(3.7	%)		6,711		7,070		(5.1	%)
Orange County, CA		1,174		1,452		1,486		(2.3	%)		94.7	%		96.6	%		(1.9	%)		4,845		5,057		(4.2	%)
San Diego, CA		1,058		1,517		1,475		2.8	%		94.3	%		94.3	%		0.0	%		4,539		4,416		2.8	%

Southern California Average		3,679		1,553		1,561		(0.5	%)		93.9	%		96.1	%		(2.2	%)		16,095		16,543		(2.7	%)


Average/Total Established		29,043	$	1,901	$	1,897		0.2	%		95.4	%		96.3	%		(0.9	%)	$	157,974	$	159,070		(0.7	%)


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2008 such that a comparison of 2008 to 2009 is meaningful.

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

(3)		With concessions reflected on a cash basis, rental revenue from Established Communities decreased 0.7% between years.

Attachment 5

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

March 31, 2009


	Apartment		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000s)
	Homes		Q1 09		Q408		% Change			Q1 09			Q408			% Change			Q1 09		Q408		% Change
New England
Boston, MA		3,289	$	1,982	$	2,000		(0.9	%)		94.9	%		95.7	%		(0.8	%)	$	18,571	$	18,884		(1.7	%)
Fairfield-New Haven, CT		2,518		1,972		2,028		(2.8	%)		94.0	%		94.7	%		(0.7	%)		13,999		14,512		(3.5	%)

New England Average		5,807		1,978		2,012		(1.7	%)		94.5	%		95.3	%		(0.8	%)		32,570		33,396		(2.5	%)


Metro NY/NJ
New Jersey		2,750		2,129		2,155		(1.2	%)		95.5	%		96.4	%		(0.9	%)		16,783		17,148		(2.1	%)
New York, NY		1,936		2,679		2,709		(1.1	%)		95.7	%		96.5	%		(0.8	%)		14,883		15,176		(1.9	%)
Long Island, NY		1,621		2,311		2,349		(1.6	%)		93.4	%		94.2	%		(0.8	%)		10,500		10,762		(2.4	%)

Metro NY/NJ Average		6,307		2,345		2,376		(1.3	%)		95.0	%		95.8	%		(0.8	%)		42,166		43,086		(2.1	%)


Mid-Atlantic/Midwest
Washington Metro		5,787		1,730		1,744		(0.8	%)		96.7	%		96.0	%		0.7	%		29,035		29,052		(0.1	%)
Chicago, IL		896		1,460		1,490		(2.0	%)		95.5	%		96.2	%		(0.7	%)		3,747		3,851		(2.7	%)

Mid-Atlantic/Midwest Average		6,683		1,694		1,708		(0.8	%)		96.5	%		96.1	%		0.4	%		32,782		32,903		(0.4	%)


Pacific Northwest
Seattle, WA		1,943		1,339		1,343		(0.3	%)		94.5	%		95.0	%		(0.5	%)		7,377		7,434		(0.8	%)

Pacific Northwest Average		1,943		1,339		1,343		(0.3	%)		94.5	%		95.0	%		(0.5	%)		7,377		7,434		(0.8	%)


Northern California
San Jose, CA		2,734		1,985		2,002		(0.8	%)		96.7	%		96.9	%		(0.2	%)		15,745		15,909		(1.0	%)
San Francisco, CA		1,170		2,347		2,369		(0.9	%)		96.8	%		96.8	%		0.0	%		7,977		8,050		(0.9	%)
Oakland-East Bay, CA		720		1,571		1,590		(1.2	%)		96.1	%		96.6	%		(0.5	%)		3,262		3,320		(1.7	%)

Northern California Average		4,624		2,012		2,032		(1.0	%)		96.7	%		96.8	%		(0.1	%)		26,984		27,279		(1.1	%)


Southern California
Los Angeles, CA		1,447		1,661		1,686		(1.5	%)		93.1	%		93.4	%		(0.3	%)		6,711		6,832		(1.8	%)
Orange County, CA		1,174		1,452		1,463		(0.8	%)		94.7	%		95.7	%		(1.0	%)		4,845		4,932		(1.8	%)
San Diego, CA		1,058		1,517		1,515		0.1	%		94.3	%		96.0	%		(1.7	%)		4,539		4,608		(1.5	%)

Southern California Average		3,679		1,553		1,565		(0.8	%)		93.9	%		94.8	%		(0.9	%)		16,095		16,372		(1.7	%)


Average/Total Established		29,043	$	1,901	$	1,924		(1.2	%)		95.4	%		95.8	%		(0.4	%)	$	157,974	$	160,470		(1.6	%)


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2008 such that a comparison of 2008 to 2009 is meaningful.

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

Attachment 6

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity (1) as of March 31, 2009


			Number		Number		Total
			of		of		Capital Cost (2)
			Communities		Homes		(millions)
Portfolio Additions:

2009 Projected Completions	(3	)
Development				8		2,363	$	798.2
Redevelopment	(4	)		4		926		30.4

Total Additions				12		3,289	$	828.6


2008 Actual Completions
Development				13		4,036	$	1,044.3
Redevelopment	(4	)		6		1,213		27.8

Total Additions				19		5,249	$	1,072.1


Pipeline Activity:	(3	)

Currently Under Construction
Development				12		4,035	$	1,406.5
Redevelopment	(4	)		7		2,143		97.6

Subtotal				19		6,178	$	1,504.1


Planning
Development Rights				28		7,370	$	2,319.0

Total Pipeline				47		13,548	$	3,823.1


(1)		Represents activity for consolidated and unconsolidated entities.

(2)		See Attachment #13 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 first quarter of 2009.

Attachment 7

AvalonBay Communities, Inc.
Development Communities as of March 31, 2009


	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 #13
Under Construction:

1. Avalon White Plains		100	%		407	$	153.0			Q2 2007		Q3 2008		Q4 2009		Q2 2010	$	2,695		55.0	%		51.4	%		42.5	%		27.5	%
White Plains, NY
2. Avalon Anaheim Stadium		100	%		251		102.3			Q2 2007		Q4 2008		Q3 2009		Q1 2010		2,310		60.2	%		44.2	%		35.9	%		16.9	%
Anaheim, CA
3. Avalon Union City		100	%		439		122.2			Q3 2007		Q1 2009		Q4 2009		Q2 2010		1,895		22.1	%		21.9	%		12.3	%		2.6	%
Union City, CA
4. Avalon at Mission Bay North III		100	%		260		153.8			Q4 2007		Q2 2009		Q4 2009		Q2 2010		3,745		N/A			7.3	%		N/A			N/A
San Francisco, CA
5. Avalon Irvine (6)		100	%		279		77.4			Q4 2007		Q2 2009		Q1 2010		Q3 2010		2,060		N/A			N/A			N/A			N/A
Irvine, CA
6. Avalon Fort Greene		100	%		631		306.8			Q4 2007		Q4 2009		Q1 2011		Q3 2011		3,605		N/A			N/A			N/A			N/A
New York, NY
7. Avalon Charles Pond		100	%		200		47.8			Q1 2008		Q1 2009		Q3 2009		Q1 2010		1,830		52.0	%		38.0	%		29.0	%		6.8	%
Coram, NY
8. Avalon Blue Hills		100	%		276		46.6			Q2 2008		Q1 2009		Q4 2009		Q2 2010		1,425		24.3	%		29.7	%		14.5	%		3.1	%
Randolph, MA
9. Avalon Walnut Creek (7)		100	%		422		156.7			Q3 2008		Q3 2010		Q1 2011		Q3 2011		2,215		N/A			N/A			N/A			N/A
Walnut Creek, CA
10. Avalon Norwalk		100	%		311		86.4			Q3 2008		Q3 2010		Q2 2011		Q4 2011		2,260		N/A			N/A			N/A			N/A
Norwalk, CT
11. Avalon Northborough I		100	%		163		27.4			Q4 2008		Q2 2009		Q1 2010		Q3 2010		1,560		N/A			14.7	%		N/A			N/A
Northborough, MA
12. Avalon Towers Bellevue		100	%		396		126.1			Q4 2008		Q2 2010		Q2 2011		Q4 2011		2,390		N/A			N/A			N/A			N/A
Bellevue, WA



Subtotal/Weighted Average					4,035	$	1,406.5										$	2,460


Completed this Quarter:

1. Avalon Morningside Park (8)		100	%		295	$	119.0			Q1 2007		Q3 2008		Q1 2009		Q3 2009	$	3,050		100.0	%		93.6	%		87.5	%		70.9	%
New York, NY
2. Avalon at the Hingham Shipyard		100	%		235		53.5			Q3 2007		Q3 2008		Q1 2009		Q4 2009		1,835		100.0	%		71.9	%		69.8	%		50.4	%
Hingham, MA


Subtotal/Weighted Average					530	$	172.5										$	2,510


Total/Weighted Average					4,565	$	1,579.0										$	2,465

Weighted Average Projected NOI as a % of Total Capital Cost (1) (9)							5.9	%	Inclusive of Concessions See Attachment #13


Non-Stabilized Development Communities: (10)				% Economic	Asset Cost Basis, Non-Stabilized Development:				Source
				Occ
				(1) (5)
Prior Quarter Completions:					Capital Cost, Prior Quarter Completions	$	240.5		Att. 7
Avalon Meydenbauer	368	$	88.1		Capital Cost, Current Completions		172.5		Att. 7
Avalon Fashion Valley	161		64.7		Capital Cost, Under Construction		1,406.5		Att. 7
Avalon Encino	131		62.2		Less: Remaining to Invest, Under Construction		(526.1	)	Att. 9

Avalon Huntington	99		25.5		Total Asset Cost Basis, Non-Stabilized Development	$	1,293.4

	759	$	240.5	64.7%



		Q1 2009 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $2.2 million. See Attachment #13.


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

(2)		Includes apartment homes for which construction has been completed and accepted by management as of April 24, 2009.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of April 24, 2009.

(4)		Physical occupancy based on apartment homes occupied as of April 24, 2009.

(5)		Represents Economic Occupancy for the first quarter of 2009.

(6)		This community was formerly known as Avalon Jamboree Village.

(7)		This community is being financed in part by a combination of third-party tax-exempt and taxable debt.

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

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

(10)		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 first quarter of 2009.

Attachment 8

AvalonBay Communities, Inc.

Redevelopment Communities as of March 31, 2009


						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		@ 3/31/09
																			Inclusive of
																			Concessions
																			See Attachment #13
Under Redevelopment:

AvalonBay

1. Essex Place		100	%		286	$	23.7	$	35.0			Q3 2004		Q3 2007		Q2 2009		Q4 2009	$	1,290		272		1
Peabody, MA
2. Avalon Woodland Hills		100	%		663		72.1		110.6			Q4 1997		Q4 2007		Q3 2010		Q1 2011		1,760		305		38
Woodland Hills, CA
3. Avalon at Diamond Heights		100	%		154		25.3		30.6			Q2 1994		Q4 2007		Q4 2010		Q2 2011		2,220		57		1
San Francisco, CA
4. Avalon Symphony Woods I		100	%		176		9.4		14.2			Q4 1986		Q2 2008		Q3 2009		Q1 2010		1,415		129		6
Columbia, MD
5. Avalon Symphony Woods II		100	%		216		36.4		42.6			Q4 2006		Q2 2008		Q3 2009		Q1 2010		1,345		138		10
Columbia, MD
6. Avalon Mountain View		88	%		248		51.6		59.7			Q4 1986		Q2 2008		Q3 2009		Q1 2010		2,035		199		13
Mountain View, CA
7. The Promenade		100	%		400		71.0		94.4			Q2 2002		Q3 2008		Q3 2010		Q1 2011		2,270		50		11
Burbank, CA

Total/Weighted Average					2,143	$	289.5	$	387.1										$	1,785		1,150		80


Weighted Average Projected NOI
as a % of Total Capital Cost (2)									8.3	%	Inclusive of Concessions - See Attachment #13


(1)		Inclusive of acquisition cost.

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

		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 first quarter of 2009.

Attachment 9

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of March 31, 2009
(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)(6)		Period End
Total - 2007 Actual		2,540	$	966,858	$	664,267	$	1,038,879	$	924,761


2008 Actual:
Quarter 1		676	$	179,408	$	180,366	$	857,491	$	925,736
Quarter 2		948		178,794		226,235		1,001,288		912,290
Quarter 3		827		191,140		207,903		713,840		842,483
Quarter 4		456		175,620		143,734		666,623		820,218

Total - 2008 Actual		2,907	$	724,962	$	758,238


2009 Projected:
Quarter 1 (Actual)		422	$	124,422	$	143,195	$	526,116	$	776,473
Quarter 2 (Projected)		719		149,057		231,016		377,059		738,597
Quarter 3 (Projected)		774		117,149		241,919		259,910		597,395
Quarter 4 (Projected)		477		89,585		162,123		170,325		487,009

Total - 2009 Projected		2,392	$	480,213	$	778,253

REDEVELOPMENT


			Total Capital				Reconstruction in
	Avg Homes		Cost Invested		Remaining to		Progress at
	Out of Service		During Period (3)		Invest (5)		Period End
Total - 2007 Actual			$	18,612	$	69,136	$	30,683


2008 Actual:
Quarter 1		112	$	6,433	$	65,666	$	37,761
Quarter 2		160		11,266		75,362		46,265
Quarter 3		103		14,705		63,107		39,981
Quarter 4		52		13,514		53,214		47,362

Total - 2008 Actual			$	45,918


2009 Projected:
Quarter 1 (Actual)		89	$	12,031	$	40,056	$	40,477
Quarter 2 (Projected)		107		11,225		28,830		33,064
Quarter 3 (Projected)		54		8,967		19,864		20,545
Quarter 4 (Projected)		33		6,209		13,654		17,270

Total - 2009 Projected			$	38,432


(1)		Data is presented for all communities currently under development or redevelopment.

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

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

(4)		Represents 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 construction or reconstruction.

(6)		Amount for Q1 2009 includes $130.3 million expected to be financed by proceeds from third-party tax-exempt and taxable debt.

		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 first quarter of 2009.

Attachment 10

AvalonBay Communities, Inc.
Future Development as of March 31, 2009

DEVELOPMENT RIGHTS (1)


	Estimated		Total
	Number		Capital Cost (1)
Location of Development Right	of Homes		(millions)
1. Wilton, CT		100	$	30
2. Rockville Centre, NY		349		129
3. Wood-Ridge, NJ		406		98
4. Greenburgh, NY Phase II		288		77
5. Cohasset, MA		200		38
6. North Bergen, NJ		164		47
7. Northborough, MA Phase II		219		43
8. Garden City, NY		160		58
9. Plymouth, MA Phase II		92		20
10. West Long Branch, NJ		180		34
11. San Francisco, CA		173		51
12. Roselle Park, NJ		249		54
13. Greenburgh, NY Phase III		156		43
14. Seattle, WA		204		63
15. Brooklyn, NY		832		443
16. Boston, MA		180		106
17. Rockville, MD		240		62
18. Canoga Park, CA		298		85
19. Maynard, MA		198		36
20. Stratford, CT		130		22
21. Dublin, CA Phase II		405		126
22. Yaphank, NY		343		57
23. Tysons Corner, VA		393		99
24. Seattle, WA II		272		81
25. Andover, MA		115		26
26. Lynnwood, WA Phase II		82		18
27. New York, NY		691		307
28. Shelton, CT		251		66


Total		7,370	$	2,319


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

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 first quarter of 2009.

Attachment 11

AvalonBay Communities, Inc.
Unconsolidated Real Estate Investments as of March 31, 2009
(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 (1)		Investment (2)		Amount		Type	Rate			Date	Debt (3)
AvalonBay Value Added Fund, LP
1. Avalon at Redondo Beach Los Angeles, CA		N/A			105	$	24,550		N/A	$	21,033	Fixed		4.87	%	Oct 2011	$	3,197
2. Avalon Lakeside Chicago, IL		N/A			204		18,098		N/A		12,056	Fixed		5.74	%	Mar 2012		1,833
3. Avalon Columbia Baltimore, MD		N/A			170		29,300		N/A		22,275	Fixed		5.48	%	Apr 2012		3,386
4. Avalon Sunset Los Angeles, CA		N/A			82		20,830		N/A		12,750	Fixed		5.41	%	Feb 2014		1,938
5. Avalon at Poplar Creek Chicago, IL		N/A			196		27,991		N/A		16,500	Fixed		4.83	%	Oct 2012		2,508
6. Avalon at Civic Center (4) Norwalk, CA		N/A			192		42,756		N/A		27,001	Fixed		5.38	%	Aug 2013		4,104
7. Avalon Paseo Place Fremont, CA		N/A			134		24,891		N/A		11,800	Fixed		5.74	%	Nov 2013		1,794
8. Avalon at Yerba Buena San Francisco, CA		N/A			160		66,791		N/A		41,500	Fixed		5.88	%	Mar 2014		6,308
9. Avalon at Aberdeen Station Aberdeen, NJ		N/A			290		58,219		N/A		39,842	Fixed		5.64	%	Sep 2013		6,056
10. The Springs Corona, CA		N/A			320		48,308		N/A		26,000	Fixed		6.06	%	Oct 2014		3,952
11. The Covington Lombard, IL		N/A			256		33,913		N/A		17,243	Fixed		5.43	%	Jan 2014		2,621
12. Avalon Cedar Place Columbia, MD		N/A			156		24,406		N/A		12,000	Fixed		5.68	%	Feb 2014		1,824
13. Avalon Centerpoint Baltimore, MD		N/A			392		79,200		N/A		45,000	Fixed		5.74	%	Dec 2013		6,840
14. Middlesex Crossing Billerica, MA		N/A			252		37,849		N/A		24,100	Fixed		5.49	%	Dec 2013		3,663
15. Avalon Crystal Hill Ponoma, NY		N/A			168		38,560		N/A		24,500	Fixed		5.43	%	Dec 2013		3,724
16. Skyway Terrace San Jose, CA		N/A			348		74,981		N/A		37,500	Fixed		6.11	%	Mar 2014		5,700
17. Avalon Rutherford Station East Rutherford, NJ		N/A			108		36,773		N/A		20,312	Fixed		6.13	%	Sep 2016		3,087
18. South Hills Apartments West Covina, CA		N/A			85		24,750		N/A		11,762	Fixed		5.92	%	Dec 2013		1,788
19. Colonial Towers/South Shore Manor Weymouth, MA		N/A			211		24,537		N/A		13,455	Fixed		5.12	%	Mar 2015		2,045

Fund corporate debt		N/A			N/A		N/A		N/A		3,000	Variable		1.96	%	2009 (8)		456


		15.2	%		3,829	$	736,703	$	109,457	$	439,629						$	66,824


Other Operating Joint Ventures
1. Avalon Chrystie Place I (5) New York, NY		20.0	%		361		129,021		25,825		117,000	Variable		1.26	%	Nov 2036		23,400
2. Avalon at Mission Bay North II (5) San Francisco, CA		25.0	%		313		123,737		28,894		105,000	Fixed		6.02	%	Dec 2015		26,250
3. Avalon Del Rey Los Angeles, CA		30.0	%		309		70,037		18,947		46,500	Variable		3.84	%	April 2016		13,950

Other Development Joint Ventures
1. Aria at Hathorne (6) (7) Danvers, MA		50.0	%		64		N/A		6,156		5,248	Variable		2.92	%	Jun 2010	$	2,624

					1,047	$	322,795	$	79,822	$	273,748						$	66,224


					4,876	$	1,059,498	$	189,279	$	713,377						$	133,048


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

(2)		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.

(3)		The Company has not guaranteed the debt of its unconsolidated investees and bears no responsibility for the repayment, other than the construction completion and related financing guarantee for Avalon Chrystie Place I associated with the construction completion and occupancy certificate.

(4)		This communitys debt is a combination of three separate fixed rate loans, all of which 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 6.05% interest rate. The third loan totals $3,195 at a 6.16% interest rate. The rate listed in the table above represents a weighted average interest rate.

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

(6)		The Company has contributed land at a stepped up basis as its only capital contribution to this development. The Company is not guaranteeing the construction or acquisition loans, nor is it responsible for any cost over runs until certain thresholds are satisfied. The outstanding debt consists of three separate variable rate loans. The first loan totals $2,608 at a 2.875% interest rate, the second loan totals $2,356 at a 2.875% interest rate, and the third loan totals $284 at a 3.700% interest rate. The third loan is a short term loan payable due in 2009. The rate listed in the table above represents a weighted average interest rate.

(7)		After the venture makes certain threshold distributions to the Company, AVB receives 50% of all further distributions.

(8)		As of March 31, 2009, these borrowings are drawn under an unsecured credit facility maturing in December 2009.

Attachment 12

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of March 31, 2009
(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:

5 Communities, 1 Land Parcel (7)

273,896

163,352

17,588

145,764

4.6

17.8

2008:

11 Communities (8)

646,200

288,384

56,469

231,915

5.1

14.1

2009:

No sales as of March 31, 2009

1998 - 2009 Total

7.5

3,265,217

1,300,791

268,553

1,032,239

5.8

15.4


(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 #13 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.

(7)		2007 GAAP gain, for purposes of this attachment, includes $56,320 related to the sale of a partnership interest in which the Company held a 50% equity interest.

(8)		2008 GAAP gain, for purposes of this attachment, includes $3,483 related to the sale of a community held by the Fund in which the Company holds a 15.2% equity interest.

Attachment 13

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

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

FFO is determined based on a definition adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (NAREIT). FFO is calculated by the Company as Net Income or loss computed in accordance with GAAP, adjusted for gains or losses on sales of 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):



	Q1		Q1
	2009		2008
Net income attributable to the Company	$	47,425	$	48,450
Dividends attributable to preferred stock				(2,175	)
Depreciation real estate assets, including discontinued operations and joint venture adjustments		53,525		49,785
Distributions to noncontrolling interests, including discontinued operations		25		57

FFO attributable to common stockholders	$	100,975	$	96,117


Average shares outstanding diluted		79,792,281		77,440,892
Earnings per share diluted	$	0.59	$	0.60

FFO per common share diluted	$	1.27	$	1.24

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 second quarter of 2009 to the range provided for projected EPS (diluted) is as follows:



	Low		High
	range		range
Projected EPS (diluted) Q2 09	$	0.49	$	0.53
Projected depreciation (real estate related)		0.67		0.67
Projected gain on sale of operating communities

Projected FFO per share (diluted) Q2 09	$	1.16	$	1.20

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 expenses, expensed development and other pursuit costs, net interest expense, general and administrative expense, joint venture income, net income or expense attributable to noncontrolling interests, 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

Attachment 13 (continued)

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.

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):



	Q1			Q1
	2009			2008
Net income attributable to the Company	$	47,425		$	48,450
Indirect operating expenses, net of corporate income		8,575			8,458
Investments and investment management expense		916			1,219
Expensed development and other pursuit costs		1,093			500
Interest expense, net		29,157			27,661
General and administrative expense		7,247			8,119
Joint venture income		(3,457	)		(34	)
Net (income) loss attributable to noncontrolling interests		(324	)		106
Depreciation expense		52,627			45,941
Income from discontinued operations		(53	)		(4,820	)

NOI from continuing operations	$	143,206		$	135,600


Established:
New England	$	20,418		$	20,999
Metro NY/NJ		28,071			29,291
Mid-Atlantic/Midwest		20,678			20,805
Pacific NW		5,214			5,193
No. California		20,299			19,969
So. California		11,346			12,019

Total Established		106,026			108,276

Other Stabilized		21,026			12,087
Development/Redevelopment		16,154			15,237

NOI from continuing operations	$	143,206		$	135,600

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2008 through March 31, 2009). A reconciliation of NOI from communities sold or classified as discontinued operations to net income for these communities is as follows (dollars in thousands):



	Q1		Q1
	2009		2008
Income from discontinued operations	$	53	$	4,820
Interest expense, net		88		530
Depreciation expense		13		2,851

NOI from discontinued operations	$	154	$	8,201


NOI from assets sold	$		$	8,201
NOI from assets held for sale		154

NOI from discontinued operations	$	154	$	8,201

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

Attachment 13 (continued)

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):



	Q1			Q1
	2009			2008
Rental revenue (GAAP basis)	$	157,974		$	159,070
Concessions amortized		2,172			1,636
Concessions granted		(1,830	)		(1,289	)


Rental revenue (with concessions on a cash basis)	$	158,316		$	159,417


% change GAAP revenue					(0.7	%)

% change cash revenue					(0.7	%)

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 three months ended March 31, 2009 as well as prior years activities is presented on Attachment 12.

Interest Coverage is calculated by the Company as EBITDA from continuing operations, excluding land gains and gain on the sale of investments in real estate joint ventures, 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 attributable to the Company before interest income and expense, income taxes, depreciation and amortization.

Attachment 13 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the first quarter of 2009 are as follows (dollars in thousands):



Net income attributable to the Company	$	47,425
Interest expense, net		29,157
Interest expense (discontinued operations)		88
Depreciation expense		52,627
Depreciation expense (discontinued operations)		13


EBITDA	$	129,310


EBITDA from continuing operations	$	129,156
EBITDA from discontinued operations		154


EBITDA	$	129,310


EBITDA from continuing operations	$	129,156

Interest expense, net		29,157

Interest charges		29,157


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 as presented on Attachment 11, 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. 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

Attachment 13 (continued)

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.

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 three months ended March 31, 2009 is as follows (dollars in thousands):



NOI for Established Communities	$	106,026
NOI for Other Stabilized Communities		21,026
NOI for Development/Redevelopment Communities		16,154

Total NOI generated by real estate assets		143,206
NOI on encumbered assets		32,978


NOI on unencumbered assets		110,228


Unencumbered NOI		77.0	%

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 2009, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2008 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 the Company owns a majority interest and where substantial redevelopment is in progress or is planned to begin during the current year. Redevelopment is considered substantial when capital invested during the reconstruction effort is expected to exceed either $5,000,000 or 10% of the communitys pre-development basis.

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.

Attachment 13 (continued)

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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