exv99w2

EXHIBIT 99.2

AvalonBay Communities, Inc.

For Immediate News Release
July 30, 2008

AVALONBAY COMMUNITIES, INC. ANNOUNCES
SECOND QUARTER 2008 OPERATING RESULTS

(Alexandria, VA) AvalonBay Communities, Inc. (NYSE: AVB) reported today that Net Income Available to Common Stockholders for the quarter ended June 30, 2008 was $125,159,000. This resulted in Earnings per Share — diluted (“EPS”) of $1.61 for the quarter ended June 30, 2008, compared to $0.61 for the comparable period of 2007, a per share increase of 163.9%. For the six months ended June 30, 2008, EPS was $2.21 compared to $1.16 for the comparable period of 2007, a per share increase of 90.5%. These increases are primarily attributable to gains from the sale of communities and growth in income from existing and newly developed communities in 2008.

Funds from Operations attributable to common stockholders — diluted (“FFO”) for the quarter ended June 30, 2008 was $97,852,000, or $1.26 per share, compared to $94,041,000, or $1.17 per share, for the comparable period of 2007. FFO per share increased 7.7%, due primarily to year over year increases in community operating performance.

FFO per share for the six months ended June 30, 2008 increased by 9.6% to $2.50 from $2.28 for the comparable period of 2007. FFO per share for the six months ended June 30, 2007 includes $0.01 related to the sale of a land parcel. Adjusting for this land sale, FFO per share increased 10.1%, driven primarily by year-over-year increases in community operating performance.

Commenting on the Company’s results, Bryce Blair, Chairman and CEO, said “In a challenging economic and capital markets environment, AVB performed well with solid portfolio performance and FFO growth of approximately 8% for the quarter. The strength of our balance sheet and the quality of our portfolio allowed us to raise $1 billion this year, better preparing us to address both future risks and opportunities. Continued solid performance allows us to raise our full year 2008 FFO guidance by $0.03 to a new range of $5.00 to $5.15.”

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

For the Company, including discontinued operations, total revenue increased by $18,276,000, or 9.0% to $221,816,000. For Established Communities, rental revenue increased 3.7%, comprised of an increase in Average Rental Rates of 3.3% and an increase in Economic Occupancy of 0.4%. As a result, total revenue for Established Communities increased $5,321,000 to $151,795,000. Operating expenses for Established Communities decreased $233,000, or 0.5% to $46,488,000. Accordingly, Net Operating Income (“NOI”) for Established Communities increased by $5,554,000, or 5.6%, to $105,307,000.

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

2Q 08 Compared to 2Q 07


	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
New England		3.0	%		(2.3	%)		5.5	%		20.8	%
Metro NY/NJ		2.6	%		2.1	%		2.8	%		25.1	%
Mid-Atlantic/Midwest		3.3	%		(2.6	%)		6.8	%		17.0	%
Pacific NW		6.1	%		(0.8	%)		8.9	%		4.7	%
No. California		6.7	%		(0.9	%)		9.6	%		22.0	%
So. California		1.8	%		4.5	%		0.8	%		10.4	%

Total		3.7	%		(0.5	%)		5.6	%		100.0	%


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

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



	2Q 08 vs 2Q 07
Rental Revenue Change with Concessions on a GAAP Basis		3.7	%

Rental Revenue Change with Concessions on a Cash Basis		3.6	%

Operating Results for the Six Months Ended June 30, 2008 Compared to the Prior Year

For the Company, including discontinued operations, total revenue increased by $37,757,000, or 9.4% to $438,003,000. For Established Communities, rental revenue increased 4.0%, comprised of an increase in Average Rental Rates of 3.7% and an increase in Economic Occupancy of 0.3%. As a result, total revenue for Established Communities increased $11,513,000 to $301,750,000, and operating expenses for Established Communities increased $1,685,000 or 1.8% to $94,130,000. Accordingly, NOI for Established Communities increased by $9,828,000 or 5.0% to $207,620,000.

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

YTD 2008 Compared to YTD 2007


	Rental			Operating						% of
	Revenue			Expenses			NOI			NOI (1)
New England		3.3	%		2.2	%		3.4	%		20.3	%
Metro NY/NJ		2.9	%		4.5	%		2.2	%		24.7	%
Mid-Atlantic/Midwest		3.2	%		(0.4	%)		5.3	%		17.2	%
Pacific NW		7.0	%		(0.3	%)		10.0	%		4.6	%
No. California		7.3	%		(0.8	%)		10.3	%		22.5	%
So. California		2.5	%		5.8	%		1.3	%		10.7	%

Total		4.0	%		1.8	%		5.0	%		100.0	%


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

Development and Redevelopment Activity

The Company completed the development of three communities during the second quarter of 2008:

	•		Avalon Riverview North, located in New York, NY, is a high-rise community containing 602 apartment homes that was completed for a Total Capital Cost of $174,400,000;

	•		Avalon on the Sound East, located in New Rochelle, NY, is a high-rise community containing 588 apartment homes that was completed for a Total Capital Cost of $180,500,000; and

	•		Avalon at Dublin Station I, located in Dublin, CA, is a garden-style community containing 305 apartment homes that was completed for a Total Capital Cost of $85,600,000.

The Company commenced the development of Avalon Blue Hills during the second quarter of 2008. Avalon Blue Hills, located in Randolph, MA, will contain 276 apartment homes for an estimated Total Capital Cost of $46,600,000.

The Company commenced the redevelopment of three communities in the second quarter of 2008: Avalon Mountain View, located in Mountain View, CA and both phases of Avalon Symphony Woods, located in Columbia, MD. These three communities contain an aggregate of 640 apartment homes and will be completed for an estimated Total Capital Cost of $18,800,000, excluding costs incurred prior to the start of redevelopment.

Disposition Activity

During the second quarter of 2008, the Company sold four communities: Avalon Haven, located in North Haven, CT, Avalon at West Grove, located in Westmont, IL and both phases of Avalon at Foxchase, located in San Jose, CA. These four communities contain an aggregate of 924 apartment homes and were sold for an aggregate sales price of $153,650,000, a portion of which was used to repay outstanding debt related to these dispositions in the amount of $26,400,000. These dispositions resulted in a gain in accordance with GAAP of approximately $74,139,000 and an Economic Gain of approximately $70,329,000. Including the disposition of Avalon Redmond by the Fund, as discussed below, the weighted average Initial Year Market Cap Rate for these five communities was 4.9% and the Unleveraged IRR over an approximate nine-year holding period was 15.2%.

In July 2008, the Company sold two communities, Avalon Landing, located in Annapolis, MD, and Avalon Walk, located in Hamden, CT. These two communities contain 922 apartment homes and were sold for an aggregate sales price of $149,750,000. The weighted average Initial Year Market Cap Rate for these two communities was 5.5%, and the Unleveraged IRR over an approximate 14-year holding period was 15.0%.

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 second quarter of 2008, the Company completed the redevelopment of Avalon Paseo Place, located in Fremont, CA on behalf of the Fund. This community contains 134 apartment homes and was completed for a Total Capital Cost of $5,200,000, excluding costs incurred prior to the start of redevelopment.

In June 2008, the Fund sold Avalon Redmond, located in Redmond, WA. Avalon Redmond contains 400 apartment homes and was sold for a sales price of $81,250,000 resulting in a gain in accordance with GAAP of $25,417,000. The Company’s share of the gain in accordance with GAAP was approximately $3,483,000 and its share of the Economic Gain was approximately $2,800,000.

Financing, Liquidity and Balance Sheet Statistics

As of June 30, 2008, the Company had no amounts outstanding under its $1,000,000,000 unsecured credit facility. At June 30, 2008, the Company had $114,329,000 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 32.9% at June 30, 2008. Unencumbered NOI for the six months ended June 30, 2008 was 78.3% and Interest Coverage for the second quarter of 2008 was 4.0 times.

New Financing Activity

In May 2008, the Company entered into a $330,000,000 variable rate, unsecured term loan comprised of three tranches, each representing approximately one third of the borrowing, bearing interest at LIBOR plus a spread of 1.25%. One tranche matures in each of the next three years, with the final tranche maturing in January 2011.

Also during the second quarter of 2008, the Company executed two separate seven-year, interest only mortgage loans for an aggregate borrowing of approximately $260,600,000 at a weighted average effective interest rate of approximately 5.58%. One mortgage loan for approximately $110,600,000 is secured by Avalon Crescent, located in McLean, VA. The second mortgage loan for approximately $150,000,000 is secured by Avalon Silicon Valley, located in Sunnyvale, CA.

Debt Repayment Activity

In April 2008, the Company repurchased $10,000,000 of its $150,000,000, 7.5% unsecured notes that mature in August 2009. The notes were repurchased for $10,287,500. The Company has included the excess cost paid over par, as well as the proportionate share of unamortized deferred financing costs for the notes repurchased, as a charge to earnings in the second quarter of 2008.

In June 2008, the Company repaid two loans secured by Avalon Knoll located in Germantown, MD and Avalon Landing located in Annapolis, MD. The aggregate amount of the repayment of the loans was approximately $17,207,000. The loans, which had a weighted average interest rate of 6.83% and an original maturity of June 2026, were repaid early at par. The Company has included the unamortized deferred financing costs related to these borrowings in the amount of $565,000 as a charge to earnings in the second quarter of 2008.

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.

Third Quarter and Full Year 2008 Financial Outlook

For the third quarter of 2008, the Company expects EPS in the range of $3.36 to $3.42. Based on changes in the Company’s disposition plan, the Company expects EPS for the full year 2008 to be in the range of $7.86 to $8.07.

The Company expects Projected FFO per share in the range of $1.26 to $1.30 for the third quarter of 2008 and Projected FFO per share for the full year 2008 to be between $5.00 and $5.15.

The Company expects to release its third quarter 2008 earnings on November 5, 2008 after the market closes. The Company expects to hold a conference call on November 6, 2008 at 10:30 AM EST to discuss the third quarter 2008 results.

Other Matters

The Company will hold a conference call on July 31, 2008 at 1:00 PM EDT to review and answer questions about this release, its second 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 July 31, 2008 at 3:30 PM EDT to August 7, 2008 at 11:59 PM EDT, dial 1-800-642-1687 domestically and 1-706-645-9291 internationally, and use Access Code: 46508145.

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 June 30, 2008, the Company owned or held a direct or indirect ownership interest in 180 apartment communities containing 51,118 apartment homes in ten states and the District of Columbia, of which 20 communities were under construction and 10 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: changes in local employment conditions, demand for apartment homes, supply of competitive housing products, and other economic conditions may result in lower than expected occupancy and/or rental rates and adversely affect the profitability of our communities; increases in costs of materials, labor or other expenses may result in communities that we develop or redevelop failing to achieve expected profitability; delays in completing development, redevelopment and/or lease-up may result in increased financing and construction costs and may delay and/or reduce the profitability of a community; debt and/or equity financing for development, redevelopment or acquisitions of communities may not be available on favorable terms; we may be unable to obtain, or experience delays in obtaining, necessary governmental permits and authorizations; or we may abandon development or redevelopment opportunities for which we have already incurred costs. Additional discussions of risks and uncertainties appear in the 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 third 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 .

SECOND 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
June 30, 2008
(Dollars in thousands except per share data)
(unaudited)

SELECTED OPERATING INFORMATION


	Q2		Q2					YTD		YTD
	2008		2007		% Change			2008		2007		% Change
Net income available to common stockholders	$	125,159	$	48,877		156.1	%	$	171,433	$	93,221		83.9	%

Per common share — basic	$	1.63	$	0.62		162.9	%	$	2.23	$	1.18		89.0	%
Per common share — diluted	$	1.61	$	0.61		163.9	%	$	2.21	$	1.16		90.5	%

Funds from Operations	$	97,852	$	94,041		4.1	%	$	193,969	$	183,158		5.9	%
Per common share — diluted	$	1.26	$	1.17		7.7	%	$	2.50	$	2.28		9.6	%

Dividends declared — common	$	68,760	$	67,774		1.5	%	$	137,457	$	135,468		1.5	%
Per common share	$	0.8925	$	0.85		5.0	%	$	1.785	$	1.70		5.0	%

Common shares outstanding		77,041,842		79,734,293		(3.4	%)		77,041,842		79,734,293		(3.4	%)
Outstanding operating partnership units		64,019		125,724		(49.1	%)		64,019		125,724		(49.1	%)

Total outstanding shares and units		77,105,861		79,860,017		(3.4	%)		77,105,861		79,860,017		(3.4	%)


Average shares outstanding — basic		76,753,951		79,428,056		(3.4	%)		76,714,437		78,932,715		(2.8	%)
Average operating partnership units outstanding		64,019		126,392		(49.3	%)		64,019		135,439		(52.7	%)
Effect of dilutive securities		760,647		1,093,066		(30.4	%)		706,267		1,214,989		(41.9	%)

Average shares outstanding — diluted		77,578,617		80,647,514		(3.8	%)		77,484,723		80,283,143		(3.5	%)

DEBT COMPOSITION AND MATURITIES


			% of Total			Average
			Market			Interest			Remaining
Debt Composition (1)	Amount		Cap			Rate (2)			Maturities (1)
Conventional Debt										2008	$	154,547
Long-term, fixed rate	$	2,403,597		23.1	%					2009	$	309,987
Long-term, variable rate		434,426		4.2	%					2010	$	347,258
Variable rate facility (3)		—		0.0	%					2011	$	503,507

Subtotal, Conventional		2,838,023		27.3	%		5.8	%		2012	$	530,770


Tax-Exempt Debt
Long-term, fixed rate		168,307		1.6	%
Long-term, variable rate		419,885		4.0	%

Subtotal, Tax-Exempt		588,192		5.6	%		3.6	%

Total Debt	$	3,426,215		32.9	%		5.4	%



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

⁽²⁾		Includes costs of financing such as credit enhancement fees, trustees’ fees, etc.

⁽³⁾		Represents the Company’s $1 billion unsecured credit facility, of which no amounts are drawn at June 30, 2008.

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home

Q208	$	19,159	$	7,590	$	42
Q108	$	19,663	$	7,159	$	4
Q407	$	20,099	$	7,180	$	251
Q307	$	19,193	$	7,008	$	93
Q207	$	18,393	$	6,684	$	38

COMMUNITY INFORMATION


		Apartment
	Communities	Homes

Current Communities	160	45,322
Development Communities	20	5,796
Development Rights	42	12,346

Attachment 2

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


	Q2			Q2						YTD			YTD
	2008			2007			% Change			2008			2007			% Change
Revenue:
Rental and other income	$	212,643		$	189,436			12.3	%	$	418,127		$	372,191			12.3	%
Management, development and other fees		1,579			1,488			6.1	%		3,217			2,932			9.7	%

Total		214,222			190,924			12.2	%		421,344			375,123			12.3	%


Operating expenses:
Direct property operating expenses, excluding property taxes		48,305			44,647			8.2	%		96,852			88,652			9.2	%
Property taxes		19,302			18,003			7.2	%		38,596			34,525			11.8	%
Property management and other indirect operating expenses		10,471			8,706			20.3	%		20,568			17,146			20.0	%
Investments and investment management (1)		3,024			2,483			21.8	%		4,743			4,508			5.2	%

Total		81,102			73,839			9.8	%		160,759			144,831			11.0	%


Interest expense, net		(29,598	)		(21,913	)		35.1	%		(57,258	)		(44,664	)		28.2	%
General and administrative expense		(9,383	)		(6,642	)		41.3	%		(17,503	)		(13,422	)		30.4	%
Joint venture income and minority interest expense (2)		3,695			(653	)		(665.8	%)		3,623			(1,189	)		(404.7	%)
Depreciation expense		(48,450	)		(41,548	)		16.6	%		(95,203	)		(82,709	)		15.1	%
Gain on sale of land		—			—			—			—			545			(100.0	%)

Income from continuing operations		49,384			46,329			6.6	%		94,244			88,853			6.1	%
Income from discontinued operations (3)		3,811			4,723			(19.3	%)		7,400			8,718			(15.1	%)
Gain on sale of communities		74,139			—			N/A			74,139			—			N/A

Total discontinued operations		77,950			4,723			N/A			81,539			8,718			N/A


Net income		127,334			51,052			149.4	%		175,783			97,571			80.2	%
Dividends attributable to preferred stock		(2,175	)		(2,175	)		—			(4,350	)		(4,350	)		—

Net income available to common stockholders	$	125,159		$	48,877			156.1	%	$	171,433		$	93,221			83.9	%

Net income per common share — basic	$	1.63		$	0.62			162.9	%	$	2.23		$	1.18			89.0	%

Net income per common share — diluted	$	1.61		$	0.61			163.9	%	$	2.21		$	1.16			90.5	%


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

(2)		Amounts for the three and six months ended June 30, 2008 include $3,483 related to the sale of an unconsolidated community.

(3)		Reflects net income for communities classified as discontinued operations as of June 30, 2008 and communities sold during the period from January 1, 2007 through June 30, 2008. The following table details income from discontinued operations for the periods shown:


	Q2			Q2			YTD			YTD
	2008			2007			2008			2007
Rental income	$	7,594		$	12,616		$	16,659		$	25,123
Operating and other expenses		(2,337	)		(4,162	)		(5,244	)		(8,614	)
Interest expense, net		(546	)		(907	)		(1,076	)		(2,034	)
Depreciation expense		(900	)		(2,824	)		(2,939	)		(5,757	)

Income from discontinued operations (4)	$	3,811		$	4,723		$	7,400		$	8,718



(4)		NOI for discontinued operations totaled $5,257 and $11,415 for the three and six months ended June 30, 2008, respectively, of which $4,021 and $7,961, respectively relate to assets classified as held for sale.

Attachment 3

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


	June 30,			December 31,
	2008			2007
Real estate	$	6,440,656		$	6,066,222
Less accumulated depreciation		(1,280,602	)		(1,185,559	)

Net operating real estate		5,160,054			4,880,663

Construction in progress, including land		957,504			947,024
Land held for development		310,296			288,423
Operating real estate assets held for sale, net		102,726			181,072

Total real estate, net		6,530,580			6,297,182

Cash and cash equivalents		7,347			20,284
Cash in escrow		106,982			188,264
Resident security deposits		30,632			29,240
Other assets (1)		246,235			201,514

Total assets	$	6,921,776		$	6,736,484


Unsecured notes, net	$	2,163,710		$	1,893,499
Unsecured facility		—			514,500
Notes payable		1,260,215			750,062
Resident security deposits		43,349			40,330
Liabilities related to assets held for sale		22,179			56,526
Other liabilities		375,499			431,761

Total liabilities	$	3,864,952		$	3,686,678


Minority interest		19,273			23,152
Stockholders’ equity		3,037,551			3,026,654

Total liabilities and stockholders’ equity	$	6,921,776		$	6,736,484


⁽¹⁾		Other assets includes $3,257 and $3,569 relating to assets classified as held for sale as of June 30, 2008 and December 31, 2007, respectively.

Attachment 4

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


	Apartment
	Homes		Average Rental Rates (2)						Economic Occupancy							Rental Revenue ($000’s)(3)
			Q2 08		Q2 07		% Change		Q2 08		Q2 07		% Change			Q2 08		Q2 07		% Change
New England
Boston, MA		3,067	$	2,030	$	1,971		3.0%		97.1%		96.0%		1.1%		$	18,141	$	17,420		4.1%
Fairfield-New Haven, CT		2,284		2,090		2,045		2.2%		96.3%		96.9%		(0.6%	)		13,794		13,571		1.6%

New England Average		5,351		2,057		2,004		2.6%		96.8%		96.4%		0.4%			31,935		30,991		3.0%

Metro NY/NJ
New Jersey		2,422		2,183		2,113		3.3%		96.1%		96.1%		0.0%			15,245		14,757		3.3%
New York, NY		1,730		2,540		2,487		2.1%		97.5%		97.4%		0.1%			12,849		12,575		2.2%
Long Island, NY		1,157		2,423		2,390		1.4%		96.1%		95.7%		0.4%			8,081		7,937		1.8%

Metro NY/NJ Average		5,309		2,352		2,295		2.5%		96.6%		96.5%		0.1%			36,175		35,269		2.6%


Mid-Atlantic/Midwest
Washington Metro		5,635		1,782		1,756		1.5%		97.0%		95.2%		1.8%			29,214		28,275		3.3%
Chicago, IL		487		1,442		1,421		1.5%		95.6%		94.8%		0.8%			2,015		1,970		2.3%

Mid-Atlantic/Midwest Average		6,122		1,755		1,728		1.6%		96.9%		95.2%		1.7%			31,229		30,245		3.3%


Pacific Northwest
Seattle, WA		1,320		1,416		1,329		6.5%		95.4%		95.8%		(0.4%	)		5,351		5,042		6.1%

Pacific Northwest Average		1,320		1,416		1,329		6.5%		95.4%		95.8%		(0.4%	)		5,351		5,042		6.1%


Northern California
San Jose, CA		3,094		1,920		1,782		7.7%		96.5%		97.1%		(0.6%	)		17,202		16,055		7.1%
San Francisco, CA		1,608		2,186		2,059		6.2%		96.6%		95.9%		0.7%			10,185		9,528		6.9%
Oakland-East Bay, CA		955		1,570		1,482		5.9%		95.9%		97.3%		(1.4%	)		4,316		4,130		4.5%

Northern California Average		5,657		1,936		1,811		6.9%		96.5%		96.7%		(0.2%	)		31,703		29,713		6.7%


Southern California
Los Angeles, CA		1,198		1,710		1,658		3.1%		95.3%		95.8%		(0.5%	)		5,861		5,710		2.6%
Orange County, CA		1,174		1,484		1,455		2.0%		95.8%		95.9%		(0.1%	)		5,006		4,915		1.9%
San Diego, CA		1,058		1,479		1,460		1.3%		94.9%		95.5%		(0.6%	)		4,458		4,427		0.7%

Southern California Average		3,430		1,562		1,527		2.3%		95.3%		95.8%		(0.5%	)		15,325		15,052		1.8%


Average/Total Established		27,189	$	1,928	$	1,866		3.3%		96.5%		96.1%		0.4%		$	151,718	$	146,312		3.7%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2007 such that a comparison of 2007 to 2008 is meaningful. The number of Established Communities was adjusted during the second quarter of 2008 to reflect changes in the Company’s disposition program.

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

(3)		With concessions reflected on a cash basis, rental revenue from Established Communities increased 3.6% between years.

Attachment 5

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


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)
			Q2 08		Q108		% Change			Q2 08			Q108			% Change			Q2 08		Q108		% Change
New England
Boston, MA		3,067	$	2,030	$	2,001		1.4	%		97.1	%		96.6	%		0.5	%	$	18,141	$	17,790		2.0	%
Fairfield-New Haven, CT		2,284		2,090		2,061		1.4	%		96.3	%		96.7	%		(0.4	%)		13,794		13,653		1.0	%

New England Average		5,351		2,057		2,027		1.5	%		96.8	%		96.6	%		0.2	%		31,935		31,443		1.6	%


Metro NY/NJ
New Jersey		2,422		2,183		2,187		(0.2	%)		96.1	%		95.7	%		0.4	%		15,245		15,207		0.2	%
New York, NY		1,730		2,540		2,502		1.5	%		97.5	%		96.6	%		0.9	%		12,849		12,536		2.5	%
Long Island, NY		1,157		2,423		2,388		1.5	%		96.1	%		96.0	%		0.1	%		8,081		7,957		1.6	%

Metro NY/NJ Average		5,309		2,352		2,332		0.9	%		96.6	%		96.1	%		0.5	%		36,175		35,700		1.3	%


Mid-Atlantic/Midwest
Washington Metro		5,635		1,782		1,763		1.1	%		97.0	%		96.0	%		1.0	%		29,214		28,627		2.1	%
Chicago, IL		487		1,442		1,419		1.6	%		95.6	%		96.9	%		(1.3	%)		2,015		2,010		0.2	%

Mid-Atlantic/Midwest Average		6,122		1,755		1,736		1.1	%		96.9	%		96.1	%		0.8	%		31,229		30,637		1.9	%


Pacific Northwest
Seattle, WA		1,320		1,416		1,400		1.1	%		95.4	%		95.9	%		(0.5	%)		5,351		5,314		0.7	%

Pacific Northwest Average		1,320		1,416		1,400		1.1	%		95.4	%		95.9	%		(0.5	%)		5,351		5,314		0.7	%


Northern California
San Jose, CA		3,094		1,920		1,890		1.6	%		96.5	%		97.0	%		(0.5	%)		17,202		17,020		1.1	%
San Francisco, CA		1,608		2,186		2,151		1.6	%		96.6	%		97.3	%		(0.7	%)		10,185		10,095		0.9	%
Oakland-East Bay, CA		955		1,570		1,560		0.6	%		95.9	%		97.0	%		(1.1	%)		4,316		4,334		(0.4	%)

Northern California Average		5,657		1,936		1,909		1.4	%		96.5	%		97.1	%		(0.6	%)		31,703		31,449		0.8	%


Southern California
Los Angeles, CA		1,198		1,710		1,695		0.9	%		95.3	%		96.8	%		(1.5	%)		5,861		5,892		(0.5	%)
Orange County, CA		1,174		1,484		1,486		(0.1	%)		95.8	%		96.6	%		(0.8	%)		5,006		5,057		(1.0	%)
San Diego, CA		1,058		1,479		1,475		0.3	%		94.9	%		94.3	%		0.6	%		4,458		4,416		1.0	%

Southern California Average		3,430		1,562		1,556		0.4	%		95.3	%		96.0	%		(0.7	%)		15,325		15,365		(0.3	%)


Average/Total Established		27,189	$	1,928	$	1,907		1.1	%		96.5	%		96.4	%		0.1	%	$	151,718	$	149,908		1.2	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2007 such that a comparison of 2007 to 2008 is meaningful. The number of Established Communities was adjusted during the second quarter of 2008 to reflect changes in the Company’s disposition program.

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

Attachment 6

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


	Apartment
	Homes		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000's)
			YTD 08		YTD 07		% Change			YTD 08			YTD 07			% Change			YTD 08		YTD 07		% Change
New England
Boston, MA		3,067	$	2,016	$	1,969		2.4	%		96.9	%		95.8	%		1.1	%	$	35,932	$	34,711		3.5	%
Fairfield-New Haven, CT		2,284		2,075		2,025		2.5	%		96.5	%		96.0	%		0.5	%		27,447		26,660		3.0	%

New England Average		5,351		2,041		1,992		2.5	%		96.7	%		95.9	%		0.8	%		63,379		61,371		3.3	%


Metro NY/NJ
New Jersey		2,422		2,185		2,086		4.7	%		95.9	%		96.5	%		(0.6	%)		30,451		29,238		4.1	%
New York, NY		1,730		2,520		2,468		2.1	%		97.1	%		96.5	%		0.6	%		25,385		24,725		2.7	%
Long Island, NY		1,157		2,406		2,377		1.2	%		96.0	%		96.1	%		(0.1	%)		16,038		15,863		1.1	%

Metro NY/NJ Average		5,309		2,342		2,274		3.0	%		96.3	%		96.4	%		(0.1	%)		71,874		69,826		2.9	%


Mid-Atlantic/Midwest
Washington Metro		5,635		1,773		1,733		2.3	%		96.5	%		95.6	%		0.9	%		57,842		56,037		3.2	%
Chicago, IL		487		1,431		1,407		1.7	%		96.3	%		95.1	%		1.2	%		4,024		3,909		2.9	%

Mid-Atlantic/Midwest Average		6,122		1,746		1,708		2.2	%		96.5	%		95.5	%		1.0	%		61,866		59,946		3.2	%


Pacific Northwest
Seattle, WA		1,320		1,408		1,312		7.3	%		95.6	%		95.9	%		(0.3	%)		10,665		9,968		7.0	%

Pacific Northwest Average		1,320		1,408		1,312		7.3	%		95.6	%		95.9	%		(0.3	%)		10,665		9,968		7.0	%


Northern California
San Jose, CA		3,094		1,905		1,760		8.2	%		96.8	%		97.3	%		(0.5	%)		34,221		31,782		7.7	%
San Francisco, CA		1,608		2,168		2,042		6.2	%		96.9	%		95.8	%		1.1	%		20,280		18,908		7.3	%
Oakland-East Bay, CA		955		1,565		1,467		6.7	%		96.4	%		97.4	%		(1.0	%)		8,650		8,185		5.7	%

Northern California Average		5,657		1,923		1,792		7.3	%		96.8	%		96.8	%		0.0	%		63,151		58,875		7.3	%


Southern California
Los Angeles, CA		1,198		1,703		1,649		3.3	%		96.0	%		95.5	%		0.5	%		11,753		11,322		3.8	%
Orange County, CA		1,174		1,485		1,444		2.8	%		96.2	%		96.5	%		(0.3	%)		10,063		9,814		2.5	%
San Diego, CA		1,058		1,476		1,450		1.8	%		94.6	%		95.5	%		(0.9	%)		8,874		8,794		0.9	%

Southern California Average		3,430		1,559		1,518		2.7	%		95.7	%		95.9	%		(0.2	%)		30,690		29,930		2.5	%


Average/Total Established		27,189	$	1,917	$	1,849		3.7	%		96.4	%		96.1	%		0.3	%	$	301,625	$	289,916		4.0	%


(1)		Established Communities are communities with stabilized operating expenses as of January 1, 2007 such that a comparison of 2007 to 2008 is meaningful. The number of Established Communities was adjusted during the second quarter of 2008 to reflect changes in the Company’s disposition program.

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

Attachment 7

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Activity (1) as of June 30, 2008


			Number		Number		Total
			of		of		Capital Cost (2)
			Communities		Homes		(millions)
Portfolio Additions:	(3	)
2008 Annual Completions
Development				12		3,937	$	1,019.6
Redevelopment	(4	)		6		1,213		28.8

Total Additions				18		5,150	$	1,048.4


2007 Annual Completions
Development				8		1,749	$	440.7
Redevelopment	(4	)		5		1,847		32.9

Total Additions				13		3,596	$	473.6


Pipeline Activity:	(3	)
Currently Under Construction
Development				20		5,796	$	1,815.4
Redevelopment	(4	)		10		2,626		92.2

Subtotal				30		8,422	$	1,907.6


Planning
Development Rights				42		12,346	$	3,653.0

Total Pipeline				72		20,768	$	5,560.6


(1)		Represents activity for consolidated and unconsolidated entities.

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

(3)		Information represents projections and estimates.

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

This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the second quarter of 2008.

Attachment 8

AvalonBay Communities, Inc.
Development Communities as of June 30, 2008


			Percentage					Total			Schedule								Avg
			Ownership			# of		Capital											Rent								% Occ
			Upon			Apt		Cost (1)					Initial				Stabilized		Per		% Comp			% Leased			Physical			Economic
			Completion			Homes		(millions)			Start		Occupancy		Complete		Ops (1)		Home (1)		(2)			(3)			(4)			(1) (5)
																			Inclusive of
																			Concessions
																			See Attachment #14
Under Construction:
	1.	Avalon Danvers (6) Danvers, MA		100	%		433	$	84.8			Q4 2005		Q1 2007		Q3 2008		Q4 2008	$	1,480		100.0	%		95.6	%		92.6	%		86.0	%
	2.	Avalon Meydenbauer Bellevue, WA		100	%		368		87.3			Q1 2006		Q1 2008		Q3 2008		Q1 2009		1,845		100.0	%		64.7	%		58.2	%		31.3	%
	3.	Avalon at Lexington Hills Lexington, MA		100	%		387		86.2			Q2 2006		Q2 2007		Q3 2008		Q4 2008		1,880		100.0	%		92.8	%		87.3	%		61.6	%
	4.	Avalon Encino Los Angeles, CA		100	%		131		61.5			Q3 2006		Q4 2008		Q4 2008		Q2 2009		2,650		N/A			N/A			N/A			N/A
	5.	Avalon Warner Place (7) Canoga Park, CA		100	%		210		53.9			Q4 2006		Q1 2008		Q3 2008		Q1 2009		1,830		84.3	%		70.0	%		56.7	%		27.0	%
	6.	Avalon Acton (8) Acton, MA		100	%		380		68.8			Q4 2006		Q4 2007		Q4 2008		Q2 2009		1,320		81.6	%		77.6	%		66.6	%		47.0	%
	7.	Avalon Morningside Park (8) New York, NY		100	%		295		125.5			Q1 2007		Q3 2008		Q1 2009		Q3 2009		3,640		22.0	%		24.7	%		3.4	%		N/A
	8.	Avalon White Plains White Plains, NY		100	%		393		154.5			Q2 2007		Q3 2008		Q4 2009		Q2 2010		2,820		N/A			5.9	%		N/A			N/A
	9.	Avalon at Tinton Falls Tinton Falls, NJ		100	%		216		41.2			Q2 2007		Q2 2008		Q4 2008		Q2 2009		1,860		73.6	%		65.3	%		53.7	%		14.1	%
	10.	Avalon Fashion Valley San Diego, CA		100	%		161		64.7			Q2 2007		Q3 2008		Q4 2008		Q2 2009		2,380		N/A			N/A			N/A			N/A
	11.	Avalon Anaheim Stadium Anaheim, CA		100	%		251		102.7			Q2 2007		Q4 2008		Q3 2009		Q1 2010		2,530		N/A			N/A			N/A			N/A
	12.	Avalon Union City Union City, CA		100	%		438		125.2			Q3 2007		Q2 2009		Q3 2009		Q1 2010		1,895		N/A			N/A			N/A			N/A
	13.	Avalon at the Hingham Shipyard Hingham, MA		100	%		235		52.7			Q3 2007		Q3 2008		Q1 2009		Q2 2009		2,090		8.1	%		8.5	%		0.4	%		N/A
	14.	Avalon Sharon Sharon, MA		100	%		156		30.7			Q3 2007		Q2 2008		Q4 2008		Q1 2009		1,675		76.9	%		82.7	%		60.3	%		17.5	%
	15.	Avalon Huntington Shelton, CT		100	%		99		26.1			Q4 2007		Q4 2008		Q2 2009		Q3 2009		2,240		N/A			N/A			N/A			N/A
	16.	Avalon at Mission Bay North III San Francisco, CA		100	%		260		157.8			Q4 2007		Q3 2009		Q4 2009		Q2 2010		3,745		N/A			N/A			N/A			N/A
	17.	Avalon Jamboree Village Irvine, CA		100	%		279		78.3			Q4 2007		Q2 2009		Q4 2009		Q2 2010		2,060		N/A			N/A			N/A			N/A
	18.	Avalon Fort Greene New York, NY		100	%		628		320.4			Q4 2007		Q3 2009		Q3 2010		Q1 2011		3,605		N/A			N/A			N/A			N/A
	19.	Avalon Charles Pond Coram, NY		100	%		200		46.5			Q1 2008		Q4 2008		Q2 2009		Q4 2009		1,865		N/A			N/A			N/A			N/A
	20.	Avalon Blue Hills Randolph, MA		100	%		276		46.6			Q2 2008		Q2 2009		Q4 2009		Q2 2010		1,440		N/A			N/A			N/A			N/A

		Subtotal/Weighted Average					5,796	$	1,815.4										$	2,290


Completed this Quarter:
	1.	Avalon Riverview North New York, NY		100	%		602	$	174.4			Q3 2005		Q3 2007		Q2 2008		Q2 2008	$	2,895		100.0	%		99.5	%		99.2	%		97.9	%
	2.	Avalon on the Sound East New Rochelle, NY		100	%		588		180.5			Q1 2006		Q2 2007		Q2 2008		Q4 2008		2,280		100.0	%		95.6	%		95.2	%		77.6	%
	3.	Avalon at Dublin Station I Dublin, CA		100	%		305		85.6			Q2 2006		Q4 2007		Q2 2008		Q4 2008		1,870		100.0	%		89.8	%		88.9	%		59.3	%

		Subtotal/Weighted Average					1,495	$	440.5										$	2,440

		Total/Weighted Average					7,291	$	2,255.9										$	2,320

		Weighted Average Projected NOI as a % of Total Capital Cost (1) (9)							6.3	%	Inclusive of Concessions — See Attachment #14


Asset Cost Basis, Non-Stabilized Development						Source

Capital Cost, Prior Quarter Completions			$	—		Att. 8
Capital Cost, Current Completions				440.5		Att. 8
Capital Cost, Under Construction				1,815.4		Att. 8

Less: Remaining to Invest, Under Construction
Total Remaining to Invest	1,001.3					Att. 10
Capital Cost, Projected Q3 2008 Starts	( 342.5	)				Att. 10, Footnote 5


				( 658.8	)

Total Asset Cost Basis, Non-Stabilized Development			$	1,597.1

Q2 2008 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $7.9 million. See Attachment #14.


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

(2)		Includes apartment homes for which construction has been completed and accepted by management as of July 25, 2008.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of July 25, 2008.

(4)		Physical occupancy based on apartment homes occupied as of July 25, 2008.

(5)		Represents Economic Occupancy for the second quarter of 2008.

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

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

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

(9)		The Weighted Average calculation is based on the Company’s 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 Company’s Supplemental Operating and Financial Data for the second quarter of 2008.

Attachment 9

AvalonBay Communities, Inc.
Redevelopment Communities as of June 30, 2008


						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		@ 6/30/08
																			Inclusive of
																			Concessions
																			See Attachment #14
Under Redevelopment:

AvalonBay
1. Avalon at AutumnWoods Fairfax, VA		100	%		420	$	31.2	$	38.3			Q4 1996		Q3 2006		Q3 2008		Q3 2008	$	1,375		420		—
2. Essex Place Peabody, MA		100	%		286		23.7		34.5			Q3 2004		Q3 2007		Q2 2009		Q4 2009		1,275		106		21
3. Avalon Redmond Place Redmond, WA		100	%		222		26.3		31.3			Q3 1999		Q3 2007		Q4 2008		Q2 2009		1,505		200		11
4. Avalon Woodland Hills Woodland Hills, CA		100	%		663		72.1		109.3			Q4 1997		Q4 2007		Q1 2010		Q3 2010		1,960		140		39
5. Avalon at Diamond Heights San Francisco, CA		100	%		154		25.3		30.2			Q2 1994		Q4 2007		Q4 2010		Q2 2011		2,440		31		7
6. Avalon Symphony Woods I Columbia, MD		100	%		176		9.4		14.0			Q4 1986		Q2 2008		Q3 2009		Q1 2010		1,460		35		8
7. Avalon Symphony Woods II Columbia, MD		100	%		216		36.4		42.4			Q4 2006		Q2 2008		Q3 2009		Q1 2010		1,400		29		7
8. Avalon Mountain View Mountain View, CA		88	%		248		24.1		32.3			Q4 1986		Q2 2008		Q3 2009		Q1 2010		2,185		24		17

Subtotal					2,385	$	248.5	$	332.3										$	1,700		985		110

Investment Management Fund (The “Fund”)
1. Avalon Cedar Place Columbia, MD		15	%		156	$	21.0	$	25.0			Q4 2006		Q3 2007		Q4 2008		Q2 2009	$	1,255		113		12
2. South Hills Apartments West Covina, CA		15	%		85		20.9		25.3			Q3 2007		Q1 2008		Q3 2008		Q3 2008		1,935		85		—

Subtotal					241	$	41.9	$	50.3										$	1,495		198		12

Total/Weighted Average					2,626	$	290.4	$	382.6										$	1,680		1,183		122

Completed this Quarter:
Investment Management Fund (The “Fund”)
1. Avalon Paseo Place Fremont, CA		15	%		134	$	19.8	$	25.0			Q4 2005		Q2 2007		Q2 2008		Q2 2008	$	1,520		134		—

Grand Total/Weighted Average					2,760	$	310.2	$	407.6										$	1,675		1,317		122

Weighted Average Projected NOI as a % of Total Capital Cost (2)									10.1	%	Inclusive of Concessions — See Attachment #14


(1)		Inclusive of acquisition cost.

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

		This chart contains forward-looking statements. Please see the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the second quarter of 2008.

Attachment 10

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of June 30, 2008
(Dollars in Thousands)

DEVELOPMENT (2)


	Apt Homes		Total Capital		Cost of Homes				Construction in
	Completed &		Cost Invested		Completed &		Remaining to		Progress at
	Occupied		During Period (3)		Occupied (4)		Invest (5)		Period End (6)
Total - 2006 Actual		1,527	$	652,828	$	311,155	$	919,358	$	626,034

2007 Actual:
Quarter 1		464	$	167,109	$	106,100	$	908,630	$	673,945
Quarter 2		724		240,036		165,064		974,266		798,358
Quarter 3		774		220,762		214,732		1,334,784		792,320
Quarter 4		578		338,951		178,371		1,038,879		924,761

Total - 2007 Actual		2,540	$	966,858	$	664,267


2008 Projected:
Quarter 1 (Actual)		676	$	179,408	$	180,366	$	857,491	$	925,736
Quarter 2 (Actual)		948		178,794		226,235		1,001,288		912,290
Quarter 3 (Projected)		824		231,334		202,456		769,954		844,788
Quarter 4 (Projected)		590		175,401		192,993		594,554		800,535

Total - 2008 Projected		3,038	$	764,937	$	802,050

REDEVELOPMENT


			Total Capital				Reconstruction in
	Avg Homes		Cost Invested		Remaining to		Progress at
	Out of Service		During Period (3)		Invest (5)		Period End (6)
Total - 2006 Actual			$	15,543	$	14,991	$	17,602

2007 Actual:
Quarter 1		63	$	3,332	$	21,704	$	14,538
Quarter 2		105		3,014		24,290		16,403
Quarter 3		97		3,896		61,583		16,182
Quarter 4		77		8,370		69,136		30,683

Total - 2007 Actual			$	18,612


2008 Projected:
Quarter 1 (Actual)		112	$	6,433	$	65,666	$	37,761
Quarter 2 (Actual)		160		11,266		75,362		46,265
Quarter 3 (Projected)		111		13,938		61,424		23,809
Quarter 4 (Projected)		76		13,980		47,445		30,030

Total - 2008 Projected			$	45,617


(1)		Data is presented for all communities currently under development or redevelopment and those communities for which development or redevelopment is expected to begin within the next 90 days.

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

(3)		Represents Total Capital Cost incurred or expected to be incurred during the quarter, year or in total. See Attachment #14 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(4)		Represents projected Total Capital Cost of apartment homes completed and occupied during the quarter. Calculated by dividing Total Capital Cost for each Development Community by number of homes for the community, multiplied by the number of homes completed and occupied during the quarter.

(5)		Represents projected Total Capital Cost remaining to invest on communities currently under development or redevelopment and those for which development or redevelopment is expected to begin within the next 90 days. Remaining to invest for Q2 2008 includes $342.5 million attributed to three anticipated Q3 2008 development starts and $20.9 million related to two anticipated Q3 2008 redevelopment starts.

(6)		Represents period end balance of construction or reconstruction costs. Amount for Q2 2008 includes $1.1 million related to two unconsolidated investments in the Fund.

Attachment 11

AvalonBay Communities, Inc.
Future Development as of June 30, 2008

DEVELOPMENT RIGHTS (1)


		Estimated		Total
		Number		Capital Cost (1)
Location of Development Right		of Homes		(millions)
1.	Walnut Creek, CA		422	$	151
2.	Bellevue, WA		396		130
3.	Northborough, MA		350		61
4.	Los Angeles, CA		278		122
5.	Norwalk, CT		311		89
6.	North Bergen, NJ		164		48
7.	Chicago, IL Phase I		491		173
8.	Rockville Centre, NY		349		129
9.	Shelton, CT		251		66
10.	Andover, MA		115		21
11.	Wilton, CT		100		24
12.	New York, NY		681		307
13.	Seattle, WA		204		65
14.	West Long Branch, NJ		180		34
15.	Plymouth, MA Phase II		92		22
16.	Seattle, WA II		234		76
17.	Wood-Ridge, NJ		354		90
18.	Cohasset, MA		200		38
19.	Greenburgh, NY Phase II		444		112
20.	Kirkland, WA Phase II		189		60
21.	Canoga Park, CA		299		85
22.	North Andover, MA		526		98
23.	Wheaton, MD		320		74
24.	Stratford, CT		146		23
25.	Concord, MA		150		38
26.	Brooklyn, NY		825		443
27.	Camarillo, CA		309		66
28.	Garden City, NY		160		58
29.	Irvine, CA Phase II		179		57
30.	Dublin, CA Phase II		405		126
31.	Rockville, MD		240		62
32.	Tysons Corner, VA		439		121
33.	San Francisco, CA		173		51
34.	Alexandria, VA		237		61
35.	Oyster Bay, NY		150		42
36.	Hackensack, NJ		230		56
37.	Highland Park, NJ		119		36
38.	Yaphank, NY		343		57
39.	Roselle Park, NJ		262		54
40.	Milford, CT		284		45
41.	Gaithersburg, MD		254		41
42.	Chicago, IL Phase II		491		141



	Total		12,346	$	3,653


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

Attachment 12

AvalonBay Communities, Inc.
Unconsolidated Real Estate Investments as of June 30, 2008
(Dollars in Thousands)


											AVB									AVB’s
							# 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		N/A			105	$	24,447		N/A	$	21,033	Fixed		4.87	%	Oct 2011	$	3,197
			Los Angeles, CA
	2.		Avalon Lakeside		N/A			204		18,098		N/A		12,056	Fixed		5.74	%	Mar 2012		1,833
			Chicago, IL
	3.		Avalon Columbia		N/A			170		29,258		N/A		22,275	Fixed		5.48	%	Apr 2012		3,386
			Baltimore, MD
	4.		Avalon Sunset		N/A			82		20,818		N/A		12,750	Fixed		5.41	%	Feb 2014		1,938
			Los Angeles, CA
	5.		Avalon at Poplar Creek		N/A			196		27,910		N/A		16,500	Fixed		4.83	%	Oct 2012		2,508
			Chicago, IL
	6.		Avalon at Civic Center (4)		N/A			192		42,755		N/A		23,805	Fixed		5.29	%	Aug 2013		3,618
			Norwalk, CA
	7.		Avalon Paseo Place		N/A			134		24,868		N/A		11,800	Fixed		5.74	%	Nov 2013		1,794
			Fremont, CA
	8.		Avalon at Yerba Buena		N/A			160		66,786		N/A		41,500	Fixed		5.88	%	Mar 2014		6,308
			San Francisco, CA
	9.		Avalon at Aberdeen Station		N/A			290		58,219		N/A		39,842	Fixed		5.64	%	Sep 2013		6,056
			Aberdeen, NJ
	10.		The Springs		N/A			320		47,655		N/A		26,000	Fixed		6.06	%	Oct 2014		3,952
			Corona, CA
	11.		The Covington		N/A			256		33,102		N/A		17,243	Fixed		5.43	%	Jan 2014		2,621
			Lombard, IL
	12.		Avalon Cedar Place		N/A			156		23,339		N/A		12,000	Fixed		5.68	%	Feb 2014		1,824
			Columbia, MD
	13.		Avalon Centerpoint		N/A			392		79,062		N/A		45,000	Fixed		5.74	%	Dec 2013		6,840
			Baltimore, MD
	14.		Middlesex Crossing		N/A			252		37,810		N/A		24,100	Fixed		5.49	%	Dec 2013		3,663
			Billerica, MA
	15.		Avalon Crystal Hill		N/A			168		38,225		N/A		24,500	Fixed		5.43	%	Dec 2013		3,724
			Ponoma, NY
	16.		Skyway Terrace		N/A			348		74,694		N/A		37,500	Fixed		6.11	%	Mar 2014		5,700
			San Jose, CA
	17.		Avalon Rutherford Station		N/A			108		36,562		N/A		20,520	Fixed		6.13	%	Sep 2016		3,119
			East Rutherford, NJ
	18.		South Hills Apartments		N/A			85		24,473		N/A		11,762	Fixed		5.92	%	Dec 2013		1,788
			West Covina, CA
	19.		Colonial Towers/South Shore Manor		N/A			211		21,907		N/A		13,455	Fixed		5.12	%	Mar 2015		2,045
			Weymouth, MA

					15.2	%		3,829	$	729,988	$	116,292	$	433,641						$	65,914

Other Operating Joint Ventures
	1.		Avalon Chrystie Place I (5)		20.0	%		361		128,951		23,472		117,000	Variable		1.43	%	Nov 2036		23,400
			New York, NY
	2.		Avalon at Mission Bay North II (5)		25.0	%		313		123,729		29,794		105,000	Fixed		6.02	%	Dec 2015		26,250
			San Francisco, CA
	3.		Avalon Del Rey		30.0	%		309		70,002		19,036		40,845	Variable		3.89	%	Sep 2009		12,254
			Los Angeles, CA
Other Development Joint Ventures
	1.		Aria at Hathorne (6) (7)		50.0	%		64		N/A		5,175		5,030	Variable		4.63	%	Jun 2010	$	2,515
			Danvers, MA

								1,047	$	322,682	$	77,477	$	267,875						$	64,419

								4,876	$	1,052,670	$	193,769	$	701,516						$	130,333


(1)		See Attachment #14 — 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 Company’s recorded equity investment plus the Company’s 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 community’s debt is a combination of two separate fixed rate loans which both mature in August 2013. The first loan totals $18,154 at a 5.04% interest rate and was assumed by the Fund upon purchase of this community. The second loan was procured in connection with the acquisition in the amount of $5,652 at a 6.08% interest rate. The rate listed in the table above represents a weighted average interest rate.

(5)		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 two separate variable rate loans at a 4.625% interest rate. The first loan totals $2,915 and the second loan totals $2,115.

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

Attachment 13

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of June 30, 2008
(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:

5 Communities (8)

234,900

77,622

4,493

73,129

4.9%

15.2%

1998 - 2008 Total

6.8

2,853,917

1,090,029

216,577

873,453

5.8%

15.7%


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

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

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

(4)		2003 GAAP gain, for purposes of this attachment, includes $23,448 related to the sale of a community in which the Company held a 50% membership interest.

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

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

(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 community held by the Fund in which the Company holds a 15.2% equity interest.

Attachment 14

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

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

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


	Q2			Q2			YTD			YTD
	2008			2007			2008			2007 (1)
Net income	$	127,334		$	51,052		$	175,783		$	97,571
Dividends attributable to preferred stock		(2,175	)		(2,175	)		(4,350	)		(4,350	)
Depreciation — real estate assets, including discontinued operations and joint venture adjustments		50,258			45,080			100,044			89,765
Minority interest, including discontinued operations		57			84			114			172
Gain on sale of unconsolidated entities holding previously depreciated real estate assets		(3,483	)		—			(3,483	)		—
Gain on sale of previously depreciated real estate assets		(74,139	)		—			(74,139	)		—

FFO attributable to common stockholders	$	97,852		$	94,041		$	193,969		$	183,158


Average shares outstanding — diluted		77,578,617			80,647,514			77,484,723			80,283,143
EPS — diluted	$	1.61		$	0.61		$	2.21		$	1.16

FFO per common share — diluted	$	1.26		$	1.17		$	2.50		$	2.28

(1)

FFO per common share — diluted includes $0.01 for the six months ended June 30, 2007 related to the sale of a land parcel.

Attachment 14 (continued)

Projected FFO, as provided within this release in the Company’s 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 third quarter and full year 2008 to the range provided for projected EPS (diluted) is as follows:


	Low			High
	range			range
Projected EPS (diluted) — Q3 08	$	3.36		$	3.42
Projected depreciation (real estate related)		0.66			0.68
Projected gain on sale of operating communities		(2.76	)		(2.80	)

Projected FFO per share (diluted) — Q3 08	$	1.26		$	1.30


Projected EPS (diluted) — Full Year 2008	$	7.86		$	8.07
Projected depreciation (real estate related)		2.60			2.64
Projected gain on sale of operating communities		(5.46	)		(5.56	)

Projected FFO per share (diluted) — Full Year 2008	$	5.00		$	5.15

NOI is defined by the Company as total property revenue less direct property operating expenses (including property taxes), and excludes corporate-level income (including management, development and other fees), corporate-level property management and other indirect operating expenses, investments and investment management, net interest expense, general and administrative expense, joint venture income, minority interest expense, depreciation expense, gain on sale of real estate assets and income from discontinued operations. The Company considers NOI to be an appropriate supplemental measure to net income of operating performance of a community or communities because it helps both investors and management to understand the core operations of a community or communities prior to the allocation of corporate-level property management overhead or general and administrative costs. This is more reflective of the operating performance of a community, and allows for an easier comparison of the operating performance of single assets or groups of assets. In addition, because prospective buyers of real estate have different overhead structures, with varying marginal impact to overhead by acquiring real estate, NOI is considered by many in the real estate industry to be a useful measure for determining the value of a real estate asset or groups of assets.

Attachment 14 (continued)

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


	Q2			Q2			YTD			YTD
	2008			2007			2008			2007
Net income	$	127,334		$	51,052		$	175,783		$	97,571
Indirect operating expenses, net of corporate income		8,893			7,218			17,350			14,214
Investments and investment management		3,024			2,483			4,743			4,508
Interest expense, net		29,598			21,913			57,258			44,664
General and administrative expense		9,383			6,642			17,503			13,422
Joint venture income and minority interest		(3,695	)		653			(3,623	)		1,189
Depreciation expense		48,450			41,548			95,203			82,709
Gain on sale of real estate assets		(74,139	)		—			(74,139	)		(545	)
Income from discontinued operations		(3,811	)		(4,723	)		(7,400	)		(8,718	)

NOI from continuing operations	$	145,037		$	126,786		$	282,678		$	249,014


Established:
New England	$	21,233		$	20,127		$	41,130		$	39,765
Metro NY/NJ		25,265			24,581			49,531			48,474
Mid-Atlantic/Midwest		20,250			18,968			39,874			37,868
Pacific NW		3,904			3,585			7,727			7,025
No. California		23,592			21,518			47,189			42,783
So. California		11,063			10,974			22,169			21,877

Total Established		105,307			99,753			207,620			197,792

Other Stabilized		20,449			16,521			40,179			29,776
Development/Redevelopment		19,281			10,512			34,879			21,446

NOI from continuing operations	$	145,037		$	126,786		$	282,678		$	249,014

NOI as reported by the Company does not include the operating results from discontinued operations (i.e., assets sold during the period January 1, 2007 through June 30, 2008). A reconciliation of NOI from communities sold or classified as discontinued operations to net income for these communities is as follows (dollars in thousands):


	Q2		Q2		YTD		YTD
	2008		2007		2008		2007
Income from discontinued operations	$	3,811	$	4,723	$	7,400	$	8,718
Interest expense, net		546		907		1,076		2,034
Depreciation expense		900		2,824		2,939		5,757

NOI from discontinued operations	$	5,257	$	8,454	$	11,415	$	16,509


NOI from assets sold	$	1,236	$	4,840	$	3,454	$	9,231
NOI from assets held for sale		4,021		3,614		7,961		7,278

NOI from discontinued operations	$	5,257	$	8,454	$	11,415	$	16,509

Attachment 14 (continued)

Projected NOI, as used within this release for certain Development and Redevelopment Communities and in calculating the Initial Year Market Cap Rate for dispositions, represents management’s estimate, as of the date of this release (or as of the date of the buyer’s valuation in the case of dispositions), of projected stabilized rental revenue minus projected stabilized operating expenses. For Development and Redevelopment Communities, Projected NOI is calculated based on the first year of Stabilized Operations, as defined below, following the completion of construction. In calculating the Initial Year Market Cap Rate, Projected NOI for dispositions is calculated for the first twelve months following the date of the buyer’s valuation. Projected stabilized rental revenue represents management’s 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 Company’s 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 management’s 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 Company’s 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):


	Q2			Q2			YTD			YTD
	2008			2007			2008			2007
Rental revenue (GAAP basis)	$	151,718		$	146,312		$	301,625		$	289,916
Concessions amortized		1,378			1,279			2,706			2,592
Concessions granted		(1,944	)		(1,671	)		(3,077	)		(2,976	)


Rental revenue (with concessions on a cash basis)	$	151,152		$	145,920		$	301,254		$	289,532


% change — GAAP revenue					3.7	%					4.0	%
% change — cash revenue					3.6	%					4.0	%

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 six months ended June 30, 2008 as well as prior years’ activities is presented on Attachment 13.

Interest Coverage is calculated by the Company as EBITDA from continuing operations, excluding land gains 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 before interest income and expense, income taxes, depreciation and amortization.

Attachment 14 (continued)

A reconciliation of EBITDA and a calculation of Interest Coverage for the second quarter of 2008 are as follows (dollars in thousands):


Net income	$	127,334
Interest expense, net		29,598
Interest expense (discontinued operations)		546
Depreciation expense		48,450
Depreciation expense (discontinued operations)		900


EBITDA	$	206,828


EBITDA from continuing operations	$	127,432
EBITDA from discontinued operations		79,396


EBITDA	$	206,828


EBITDA from continuing operations	$	127,432

Interest expense, net		29,598
Dividends attributable to preferred stock		2,175

Interest charges		31,773


Interest coverage		4.0

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 12, 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 management’s estimate of projected rental revenue minus projected operating expenses before interest, income taxes (if any), depreciation, amortization and extraordinary items. For this purpose, management’s 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 Company’s general and administrative expense, interest expense, or corporate-level property management and other indirect operating expenses. Therefore, Unleveraged IRR is not a substitute for net income as a measure of our performance. Management believes that the Unleveraged IRR achieved during the period a community is owned by the Company is useful because it is one indication of the gross value created by the Company’s acquisition, development or

Attachment 14 (continued)

redevelopment, management and sale of a community, before the impact of indirect expenses and Company overhead. The Unleveraged IRR achieved on the communities as cited in this release should not be viewed as an indication of the gross value created with respect to other communities owned by the Company, and the Company does not represent that it will achieve similar Unleveraged IRRs upon the disposition of other communities. The weighted average Unleveraged IRR for sold communities is weighted based on all cash flows over the holding period for each respective community, including net sales proceeds.

Leverage is calculated by the Company as total debt as a percentage of Total Market Capitalization. Total Market Capitalization represents the aggregate of the market value of the Company’s common stock, the market value of the Company’s operating partnership units outstanding (based on the market value of the Company’s common stock), the liquidation preference of the Company’s preferred stock and the outstanding principal balance of the Company’s debt. Management believes that Leverage can be one useful measure of a real estate operating company’s long-term liquidity and balance sheet strength, because it shows an approximate relationship between a company’s total debt and the current total market value of its assets based on the current price at which the Company’s common stock trades. Changes in Leverage also can influence changes in per share results. A calculation of Leverage as of June 30, 2008 is as follows (dollars in thousands):


Total debt	$	3,426,215

Common stock		6,869,051
Preferred stock		100,000
Operating partnership units		5,708
Total debt		3,426,215

Total market capitalization		10,400,974


Debt as % of capitalization		32.9	%

Because Leverage changes with fluctuations in the Company’s stock price, which occur regularly, the Company’s Leverage may change even when the Company’s earnings, interest and debt levels remain stable. Investors should also note that the net realizable value of the Company’s assets in liquidation is not easily determinable and may differ substantially from the Company’s Total Market Capitalization.

Unencumbered NOI as calculated by the Company represents NOI generated by real estate assets unencumbered by either outstanding secured debt or land leases (excluding land leases with purchase options that were put in place for governmental incentives or tax abatements) as a percentage of total NOI generated by real estate assets. The Company believes that current and prospective unsecured creditors of the Company view Unencumbered NOI as one indication of the borrowing capacity of the Company. Therefore, when reviewed together with the Company’s 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 six months ended June 30, 2008, for assets owned at June 30, 2008, is as follows (dollars in thousands):


NOI for Established Communities	$	207,620
NOI for Other Stabilized Communities		40,179
NOI for Development/Redevelopment Communities		34,879
NOI for discontinued operations		11,415

Total NOI generated by real estate assets		294,093
NOI on encumbered assets		63,917

NOI on unencumbered assets		230,176


Unencumbered NOI		78.3	%

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 2008, Established Communities are consolidated communities that have Stabilized Operations as of January 1, 2007 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.

Attachment 14 (continued)

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

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

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

Economic Occupancy is defined as total possible revenue less vacancy loss as a percentage of total possible revenue. Total possible revenue is determined by valuing occupied units at contract rates and vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant apartments at their Market Rents, Economic Occupancy takes into account the fact that apartment homes of different sizes and locations within a community have different economic impacts on a community’s gross revenue.

Market Rents as reported by the Company are based on the current market rates set by the managers of the Company’s communities based on their experience in renting their communities’ apartments and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Non-Revenue Generating Capex represents capital expenditures that will not directly result in revenue earnings or expense savings.

Stabilized/Restabilized Operations is defined as the earlier of (i) attainment of 95% physical occupancy or (ii) the one-year anniversary of completion of development or redevelopment.

Average Rent per Home, as calculated for certain Development and Redevelopment Communities in lease-up, reflects (i) actual average leased rents for those apartments leased through the end of the quarter net of estimated stabilized concessions, (ii) estimated market rents net of comparable concessions for all unleased apartments and (iii) includes actual and estimated other rental revenue. For Development and Redevelopment Communities not yet in lease-up, Average Rent per Home reflects management’s 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.