AvalonBay Communities Reports Second Quarter 2002 Operating Results; Announces Stock Repurchase Program

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AvalonBay Communities Reports Second Quarter 2002 Operating Results; Announces Stock Repurchase Program
    ALEXANDRIA, Va., July 23 /PRNewswire-FirstCall/ -- AvalonBay Communities,
Inc. (NYSE: AVB; PCX) reported today its second quarter 2002 operating
results.  Highlights follow:

    -- Earnings per Share ("EPS") diluted for the quarter ended June 30, 2002
       was $0.46 compared to $0.57 for the comparable period of 2001, a per
       share decrease of 19.3%.  EPS diluted for the six months ended June 30,
       2002 was $0.97 compared to $1.18 for the comparable period of 2001, a
       per share decrease of 17.8%.
    -- Funds from Operations ("FFO") per share diluted for the quarter ended
       June 30, 2002 was $0.95 compared to $1.02 for the comparable period of
       2001, a per share decrease of 6.9%.  FFO per share diluted for the six
       months ended June 30, 2002 was $1.94 compared to $2.00 for the
       comparable period of 2001, a per share decrease of 3.0%.
    -- Net Operating Income ("NOI") from the entire portfolio for the quarter
       ended June 30, 2002 decreased 4.5% compared to the second quarter of
       2001.  NOI for the six months ended June 30, 2002 decreased by 2.2%
       compared to the comparable period of 2001.
    -- Total revenue decreased by $1,574,000, or 1.0%, to $160,785,000 for the
       quarter ended June 30, 2002.  Total revenue increased by $2,773,000, or
       0.9%, to $320,889,000 for the six months ended June 30, 2002.
    -- Established Communities rental revenue decreased 6.2%, operating
       expenses increased 1.8% and NOI decreased 9.1% for the quarter ended
       June 30, 2002.  Established Communities rental revenue decreased 5.1%,
       operating expenses increased 2.1% and NOI decreased 7.7% for the six
       months ended June 30, 2002.
    -- For the third quarter 2002, the Company expects EPS within a range of
       $0.51 to $0.53 and FFO per share in the range of $0.93 to $0.97.  First
       Call currently reflects a consensus estimate for full year 2002 FFO per
       share of $3.88.  The Company is comfortable with the current consensus
       estimate.

    The Company also announced that its Board of Directors has authorized a
common stock repurchase program.  Under this program, the Company may acquire
shares of its common stock in open market or negotiated transactions up to an
aggregate purchase price of $100 million.   Actual purchases of stock will
vary with market conditions.  The size of the stock repurchase program was
designed so that retained cash flow, as well as the proceeds from sales of
existing apartment communities and a reduction in planned acquisitions, will
provide the source of funding for the program, with the Company's line of
credit providing temporary funding as needed.
    The full text of the release, which also includes a discussion of the
Company's earnings outlook, is available through the Company's website and e-
mail distribution.  The Company also produces Earnings Release Attachments
("the Attachments") that provide detailed information regarding operating,
development and redevelopment activity. The full text and the Attachments are
available through the Company's website at http://www.avalonbay.com/earnings.
The ability to access the Attachments on the Company's website requires the
Adobe Acrobat 4.0 Reader, which may be downloaded at
http://www.adobe.com/products/acrobat/readstep.html.
    The Company will hold a conference call on July 24, 2002 at 11:00AM
Eastern Time (EDT) to review the matters discussed in the release.  The
domestic number to call to participate is 1-877-510-2397, and the
international number to participate is 1-706-634-5877.  The domestic number to
hear a replay of this call is 1-800-642-1687, and the international number to
hear a replay of this call is 1-706-645-9291 - Access Code: 4717179.  A live
webcast and an on-line playback of the conference call will also be available
on the Company's website at http://www.avalonbay.com/earnings.
    At June 30, 2002, AvalonBay Communities, Inc., headquartered in
Alexandria, Virginia, owned or held an ownership interest in 146 apartment
communities containing 42,914 apartment homes in eleven states and the
District of Columbia, of which thirteen communities were under construction
and one community was 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.
http://www.avalonbay.com
CONTACT:
Thomas J. Sargeant, Executive Vice President,
Chief Financial Officer of AvalonBay Communities, Inc.,
+1-703-317-4635