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| AvalonBay Communities Announces Fourth Quarter and Summarizes Full Year 2001 Disposition Activity |
ALEXANDRIA, Va., Jan. 16 /PRNewswire-FirstCall/ -- AvalonBay Communities, Inc. (NYSE: AVB; PCX) announced its fourth quarter and summarized its full year 2001 disposition activity. Fourth Quarter 2001 The Company sold Avalon Colchester, a 57 apartment home community, located in the Boston, Massachusetts area, in October 2001. The Company also sold Timberwood, a 209 apartment home community, and Arbor Heights, a 351 apartment home community, during December 2001. Both communities are located in the Los Angeles, California area. Financial information regarding the sale of these communities is set forth in the following table: Estimated Sales Price Net Proceeds (in millions) (in millions) Avalon Colchester $ 6.0 $ 5.9 Timberwood $22.9 $22.7 Arbor Heights $35.3 $34.7 Total $64.2 $63.3 The estimated net proceeds of approximately $63.3 million from the sale of these communities will be redeployed to development and redevelopment communities currently under construction or reconstruction. Full Year 2001 The company previously announced the sale of four communities containing 1,934 apartment homes during 2001. In aggregate, the Company sold seven communities with 2,551 apartment homes during 2001 for a gross sales price of approximately $241.1 million at a weighted average initial year market capitalization rate of 8.0%. These sales generated approximately $230.4 million of net proceeds for redeployment to development and redevelopment communities. Bryce Blair, Chairman, CEO and President of AvalonBay Communities, Inc. said, "We are pleased with the success of our disposition program which has enabled us to exit non-core markets such as Portland, Oregon and Hartford, Connecticut in addition to disposing of certain non-core assets. The redeployment of the disposition proceeds into our core, high barrier-to-entry markets where we have a strong competitive advantage is a clear example of one of the ways in which we pursue our market penetration strategy." The Company expects to report a gain on the sale of communities as reported in accordance with Generally Accepted Accounting Principles for the full year 2001 of approximately $62.9 million, or $.90 per share, and a net tax gain of approximately $68.8 million, or $.99 per share. The Company achieved an unleveraged weighted average return of approximately 14.0% on the capital invested during the period of ownership. Non-GAAP Measures "Initial Year Market Capitalization rate on dispositions" refers to the percentage derived by dividing a community's next twelve months net operating income after adjustments for management fee and reserves by the gross sales price of the community. "Unleveraged weighted average return" refers to the percentage derived by calculating the internal rate of return on cash flows for a community excluding capitalized interest. About AvalonBay Communities, Inc. AvalonBay Communities, Inc., headquartered in Alexandria, Virginia, currently owns or holds an ownership interest in 139 apartment communities containing 40,602 apartment homes in eleven states and the District of Columbia, of which fifteen communities are under construction and three are under reconstruction. AvalonBay is in the business of developing, redeveloping, acquiring and managing luxury apartment communities in high barrier-to-entry markets of the United States. More information on AvalonBay may be found on AvalonBay's Web Site at http://www.avalonbay.com .SOURCE AvalonBay Communities, Inc.
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CONTACT:
Bryce Blair, Chairman of the Board, Chief
Executive Officer and President of AvalonBay Communities, Inc.,
+1-703-317-4652; or Timothy J. Naughton, Chief Operating Officer
of AvalonBay Communities, Inc., +1-703-317-4620
