AvalonBay Communities 8K Results of Operations and Financial Condition | AVB 4 Feb 10

FOURTH QUARTER 2009

Supplemental Operating and Financial Data

Avalon Blue Hills, located in Randolph, MA, contains 276 apartment homes and was completed in the fourth quarter of 2009 for a Total Capital Cost of $46.1 million. The community offers spacious apartments with scenic views, nearby shopping and easy access to Route 128.

FOURTH 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
Full Year Revenue and Occupancy Changes (Established Communities)		Attachment 6

Development, Redevelopment, Acquisition and Disposition Profile
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs		Attachment 7
Summary of Development and Redevelopment Activity		Attachment 8
Development Communities		Attachment 9
Redevelopment Communities		Attachment 10
Summary of Development and Redevelopment Community Activity		Attachment 11
Future Development		Attachment 12
Unconsolidated Real Estate Investments		Attachment 13
Summary of Disposition Activity		Attachment 14

2010 Financial Outlook
2010 Financial Outlook		Attachment 15
Projected Sources and Uses of Cash		Attachment 16

Definitions and Reconciliations
Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms		Attachment 17

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 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, 2008 and the Company’s Quarterly Reports on Form 10-Q for subsequent quarters.

Attachment 1

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

SELECTED OPERATING INFORMATION


	Q4		Q4						Full Year		Full Year
	2009		2008			% Change			2009		2008		% Change

Net income (loss) attributable to common stockholders	$	32,394	$	(1,806	)		1,893.7	%	$	155,647	$	401,033		(61.2	%)

Per common share — basic	$	0.40	$	(0.02	)		2,100.0	%	$	1.94	$	5.21		(62.8	%)
Per common share — diluted	$	0.40	$	(0.02	)		2,100.0	%	$	1.93	$	5.17		(62.7	%)

Funds from Operations	$	52,715	$	22,963			129.6	%	$	313,241	$	315,947		(0.9	%)
Per common share — diluted	$	0.64	$	0.30			113.3	%	$	3.89	$	4.07		(4.4	%)

Dividends declared — common	$	72,765	$	208,224			(65.1	%)	$	287,983	$	414,502		(30.5	%)
Per common share	$	0.8925	$	2.7000			(66.9	%)	$	3.5700	$	5.3775		(33.6	%)

Common shares outstanding		81,528,957		77,119,963			5.7	%		81,528,957		77,119,963		5.7	%
Outstanding operating partnership units		15,351		19,427			(21.0	%)		15,351		19,427		(21.0	%)

Total outstanding shares and units		81,544,308		77,139,390			5.7	%		81,544,308		77,139,390		5.7	%


Average shares and participating securities outstanding — basic		81,473,981		77,116,911			5.6	%		80,201,606		77,035,737		4.1	%


Weighted shares — basic		81,227,532		76,871,127			5.7	%		79,951,348		76,783,515		4.1	%
Average operating partnership units outstanding		15,351		47,577			(67.7	%)		16,490		59,886		(72.5	%)
Effect of dilutive securities		626,805		815,883			(23.2	%)		631,819		735,451		(14.1	%)


Average shares outstanding — diluted		81,869,688		77,734,587			5.3	%		80,599,657		77,578,852		3.9	%

DEBT COMPOSITION AND MATURITIES


			Average
			Interest			Remaining
Debt Composition (1)	Amount		Rate (2)			Maturities (1)


Conventional Debt							2010	$	125,060
Long-term, fixed rate	$	2,830,010					2011	$	238,597
Long-term, variable rate		355,311					2012	$	516,164
Variable rate facilities (3)		—					2013	$	380,132

Subtotal, Conventional		3,185,321		5.7	%		2014	$	199,463


Tax-Exempt Debt
Long-term, fixed rate		163,072
Long-term, variable rate		628,927

Subtotal, Tax-Exempt		791,999		2.7	%


Total Debt	$	3,977,320		5.1	%

CAPITALIZED COSTS


					Non-Rev
	Cap		Cap		Capex
	Interest		Overhead		per Home


Q409	$	10,303	$	6,135	$	193
Q309	$	11,878	$	5,680	$	59
Q209	$	13,677	$	6,610	$	32
Q109	$	12,368	$	6,507	$	8
Q408	$	16,996	$	7,836	$	290

COMMUNITY INFORMATION


			Apartment
	Communities		Homes


Current Communities		165		47,926
Development Communities		7		2,438
Development Rights		28		7,180


(1)		Excludes debt associated with assets 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 amount was drawn at December 31, 2009.

Attachment 2

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


	Q4			Q4						Full Year			Full Year
	2009			2008			% Change			2009			2008			% Change
Revenue:
Rental and other income	$	212,525		$	208,603			1.9	%	$	844,254		$	807,656			4.5	%
Management, development and other fees		1,904			1,763			8.0	%		7,328			6,568			11.6	%

Total		214,429			210,366			1.9	%		851,582			814,224			4.6	%

Operating expenses:
Direct property operating expenses, excluding property taxes		55,376			49,297			12.3	%		214,507			191,690			11.9	%
Property taxes		21,860			19,386			12.8	%		83,809			73,937			13.4	%
Property management and other indirect operating expenses		9,049			9,617			(5.9	%)		37,559			39,874			(5.8	%)

Total operating expenses		86,285			78,300			10.2	%		335,875			305,501			9.9	%

Interest expense, net		(42,107	)		(30,829	)		36.6	%		(150,323	)		(114,910	)		30.8	%
Gain (loss) on extinguishment of debt, net		(26,972	)		1,839			(1,566.7	%)		(25,910	)		1,839			(1,508.9	%)
General and administrative expense		(10,360	)		(15,960	)		(35.1	%)		(28,748	)		(42,781	)		(32.8	%)
Joint venture (loss) income		(2,698	)		238			(1,233.6	%)		1,441			4,566			(68.4	%)
Investments and investment management expense		(1,045	)		(1,145	)		(8.7	%)		(3,844	)		(4,787	)		(19.7	%)
Expensed development and other pursuit costs		(746	)		(9,467	)		(92.1	%)		(5,842	)		(12,511	)		(53.3	%)
Depreciation expense		(55,392	)		(48,592	)		14.0	%		(209,746	)		(183,748	)		14.1	%
Impairment loss		(850	)		(57,899	)		(98.5	%)		(21,152	)		(57,899	)		(63.5	%)
Gain on sale of land		4,589			—			N/A			4,830			—			N/A

Income (loss) from continuing operations		(7,437	)		(29,749	)		(75.0	%)		76,413			98,492			(22.4	%)
Income from discontinued operations (1)		2,570			4,564			(43.7	%)		13,974			27,353			(48.9	%)
Gain on sale of communities		37,217			27,051			37.6	%		63,887			284,901			(77.6	%)

Total discontinued operations		39,787			31,615			25.8	%		77,861			312,254			(75.1	%)

Net income		32,350			1,866			1,633.7	%		154,274			410,746			(62.4	%)
Net income attributable to redeemable noncontrolling interests		44			257			(82.9	%)		1,373			741			85.3	%

Net income attributable to the Company		32,394			2,123			1,425.9	%		155,647			411,487			(62.2	%)
Dividends attributable to preferred stock		—			(3,929	)		(100.0	%)		—			(10,454	)		(100.0	%)


Net income (loss) attributable to common stockholders	$	32,394		$	(1,806	)		1,893.7	%	$	155,647		$	401,033			(61.2	%)

Net income (loss) attributable to common stockholders per common share — basic	$	0.40		$	(0.02	)		2,100.0	%	$	1.94		$	5.21			(62.8	%)

Net income (loss) attributable to common stockholders per common share — diluted	$	0.40		$	(0.02	)		2,100.0	%	$	1.93		$	5.17			(62.7	%)


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


	Q4			Q4			Full Year			Full Year
	2009			2008			2009			2008
Rental income	$	6,224		$	10,902		$	35,086		$	68,481
Operating and other expenses		(2,454	)		(3,531	)		(11,891	)		(22,127	)
Interest expense, net		—			(444	)		(681	)		(3,297	)
Depreciation expense		(1,200	)		(2,363	)		(8,540	)		(15,704	)

Income from discontinued operations	$	2,570		$	4,564		$	13,974		$	27,353

Attachment 3

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


	December 31,			December 31,
	2009			2008

Real estate	$	7,425,310		$	6,570,821
Less accumulated depreciation		(1,477,772	)		(1,268,557	)

Net operating real estate		5,947,538			5,302,264
Construction in progress, including land		531,299			867,040
Land held for development		237,095			239,456
Operating real estate assets held for sale, net		117,555			240,983


Total real estate, net		6,833,487			6,649,743

Cash and cash equivalents		105,691			64,935
Cash in escrow		210,676			192,681
Resident security deposits		23,646			29,708
Other assets		284,105			237,286

Total assets	$	7,457,605		$	7,174,353


Unsecured notes, net	$	1,658,029		$	2,002,965
Unsecured facilities		—			124,000
Notes payable		2,316,843			1,527,757
Resident security deposits		33,646			38,643
Liabilities related to assets held for sale		6,399			31,136
Other liabilities		386,764			523,503

Total liabilities	$	4,401,681		$	4,248,004


Redeemable noncontrolling interests		5,797			10,234
Stockholders’ equity		3,050,127			2,916,115

Total liabilities and stockholders’ equity	$	7,457,605		$	7,174,353

Attachment 4

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

December 31, 2009


	Apartment		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000’s) (3)
	Homes		Q4 09		Q4 08		% Change			Q4 09			Q4 08			% Change			Q4 09		Q4 08		% Change
New England
Boston, MA		3,009	$	1,971	$	2,044		(3.6	%)		94.7	%		95.8	%		(1.1	%)	$	16,853	$	17,689		(4.7	%)
Fairfield-New Haven, CT		2,350		1,899		2,064		(8.0	%)		96.6	%		94.8	%		1.8	%		12,930		13,779		(6.2	%)

New England Average		5,359		1,939		2,052		(5.5	%)		95.5	%		95.4	%		0.1	%		29,783		31,468		(5.4	%)


Metro NY/NJ
New Jersey		2,750		1,976		2,156		(8.3	%)		96.1	%		96.4	%		(0.3	%)		15,672		17,148		(8.6	%)
Long Island, NY		1,621		2,199		2,351		(6.5	%)		95.9	%		94.2	%		1.7	%		10,249		10,762		(4.8	%)
New York, NY		1,524		2,657		2,829		(6.1	%)		97.2	%		96.6	%		0.6	%		11,812		12,494		(5.5	%)

Metro NY/NJ Average		5,895		2,213		2,383		(7.1	%)		96.4	%		95.9	%		0.5	%		37,733		40,404		(6.6	%)


Mid-Atlantic/Midwest
Washington Metro		5,487		1,745		1,770		(1.4	%)		96.8	%		96.0	%		0.8	%		27,818		27,981		(0.6	%)
Chicago, IL		601		1,422		1,518		(6.3	%)		95.4	%		95.9	%		(0.5	%)		2,447		2,625		(6.8	%)

Mid-Atlantic/Midwest Average		6,088		1,713		1,745		(1.8	%)		96.7	%		96.0	%		0.7	%		30,265		30,606		(1.1	%)


Pacific Northwest
Seattle, WA		1,943		1,214		1,342		(9.5	%)		93.9	%		95.0	%		(1.1	%)		6,644		7,434		(10.6	%)

Pacific Northwest Average		1,943		1,214		1,342		(9.5	%)		93.9	%		95.0	%		(1.1	%)		6,644		7,434		(10.6	%)


Northern California
San Jose, CA		2,542		1,810		2,001		(9.5	%)		96.0	%		96.8	%		(0.8	%)		13,243		14,771		(10.3	%)
San Francisco, CA		1,170		2,156		2,367		(8.9	%)		95.7	%		96.8	%		(1.1	%)		7,245		8,050		(10.0	%)
Oakland-East Bay, CA		720		1,420		1,593		(10.9	%)		97.7	%		96.6	%		1.1	%		2,996		3,320		(9.8	%)

Northern California Average		4,432		1,838		2,032		(9.5	%)		96.1	%		96.8	%		(0.7	%)		23,484		26,141		(10.2	%)


Southern California
Los Angeles, CA		1,447		1,533		1,686		(9.1	%)		95.2	%		93.4	%		1.8	%		6,335		6,831		(7.3	%)
Orange County, CA		1,174		1,371		1,463		(6.3	%)		95.9	%		95.7	%		0.2	%		4,633		4,932		(6.1	%)
San Diego, CA		1,058		1,451		1,515		(4.2	%)		94.0	%		96.0	%		(2.0	%)		4,322		4,608		(6.2	%)

Southern California Average		3,679		1,457		1,565		(6.9	%)		95.1	%		94.8	%		0.3	%		15,290		16,371		(6.6	%)


Average/Total Established		27,396	$	1,816	$	1,938		(6.3	%)		96.0	%		95.8	%		0.2	%	$	143,199	$	152,424		(6.1	%)


(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 5.2% between years.

Attachment 5

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

December 31, 2009


	Apartment		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000’s)
	Homes		Q4 09		Q3 09		% Change			Q4 09			Q3 09			% Change			Q4 09		Q3 09		% Change
New England
Boston, MA		3,009	$	1,971	$	2,003		(1.6	%)		94.7	%		94.5	%		0.2	%	$	16,853	$	17,091		(1.4	%)
Fairfield-New Haven, CT		2,350		1,899		1,945		(2.4	%)		96.6	%		96.1	%		0.5	%		12,930		13,183		(1.9	%)

New England Average		5,359		1,939		1,978		(2.0	%)		95.5	%		95.2	%		0.3	%		29,783		30,274		(1.6	%)


Metro NY/NJ
New Jersey		2,750		1,976		2,019		(2.1	%)		96.1	%		96.8	%		(0.7	%)		15,672		16,127		(2.8	%)
Long Island, NY		1,621		2,199		2,236		(1.7	%)		95.9	%		95.5	%		0.4	%		10,249		10,382		(1.3	%)
New York, NY		1,524		2,657		2,711		(2.0	%)		97.2	%		97.3	%		(0.1	%)		11,812		12,062		(2.1	%)

Metro NY/NJ Average		5,895		2,213		2,258		(2.0	%)		96.4	%		96.6	%		(0.2	%)		37,733		38,571		(2.2	%)


Mid-Atlantic/Midwest
Washington Metro		5,487		1,745		1,768		(1.3	%)		96.8	%		96.5	%		0.3	%		27,818		28,105		(1.0	%)
Chicago, IL		601		1,422		1,461		(2.7	%)		95.4	%		96.4	%		(1.0	%)		2,447		2,540		(3.7	%)

Mid-Atlantic/Midwest Average		6,088		1,713		1,738		(1.4	%)		96.7	%		96.5	%		0.2	%		30,265		30,645		(1.2	%)


Pacific Northwest
Seattle, WA		1,943		1,214		1,261		(3.7	%)		93.9	%		94.7	%		(0.8	%)		6,644		6,964		(4.6	%)

Pacific Northwest Average		1,943		1,214		1,261		(3.7	%)		93.9	%		94.7	%		(0.8	%)		6,644		6,964		(4.6	%)


Northern California
San Jose, CA		2,542		1,810		1,849		(2.1	%)		96.0	%		96.7	%		(0.7	%)		13,243		13,637		(2.9	%)
San Francisco, CA		1,170		2,156		2,219		(2.8	%)		95.7	%		95.8	%		(0.1	%)		7,245		7,464		(2.9	%)
Oakland-East Bay, CA		720		1,420		1,460		(2.7	%)		97.7	%		97.0	%		0.7	%		2,996		3,059		(2.1	%)

Northern California Average		4,432		1,838		1,883		(2.4	%)		96.1	%		96.5	%		(0.4	%)		23,484		24,160		(2.8	%)


Southern California
Los Angeles, CA		1,447		1,533		1,568		(2.2	%)		95.2	%		95.9	%		(0.7	%)		6,335		6,525		(2.9	%)
Orange County, CA		1,174		1,371		1,410		(2.8	%)		95.9	%		92.5	%		3.4	%		4,633		4,593		0.9	%
San Diego, CA		1,058		1,451		1,476		(1.7	%)		94.0	%		94.2	%		(0.2	%)		4,322		4,411		(2.0	%)

Southern California Average		3,679		1,457		1,491		(2.3	%)		95.1	%		94.4	%		0.7	%		15,290		15,529		(1.5	%)


Average/Total Established		27,396	$	1,816	$	1,853		(2.0	%)		96.0	%		95.9	%		0.1	%	$	143,199	$	146,143		(2.0	%)


(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.
Full Year Revenue and Occupancy Changes — Established Communities (1)

December 31, 2009


	Apartment		Average Rental Rates (2)							Economic Occupancy									Rental Revenue ($000’s) (3)
	Homes		Full Year 09		Full Year 08		% Change			Full Year 09			Full Year 08			% Change			Full Year 09		Full Year 08		% Change
New England
Boston, MA		3,009	$	2,003	$	2,018		(0.7	%)		94.9	%		96.5	%		(1.6	%)	$	68,681	$	70,296		(2.3	%)
Fairfield-New Haven, CT		2,350		1,958		2,074		(5.6	%)		95.5	%		96.0	%		(0.5	%)		52,726		56,153		(6.1	%)

New England Average		5,359		1,984		2,043		(2.9	%)		95.2	%		96.3	%		(1.1	%)		121,407		126,449		(4.0	%)


Metro NY/NJ
New Jersey		2,750		2,055		2,185		(5.9	%)		95.9	%		95.9	%		0.0	%		65,069		69,151		(5.9	%)
Long Island, NY		1,621		2,260		2,331		(3.0	%)		95.0	%		95.3	%		(0.3	%)		41,786		43,212		(3.3	%)
New York, NY		1,524		2,736		2,809		(2.6	%)		96.6	%		97.0	%		(0.4	%)		48,334		49,834		(3.0	%)

Metro NY/NJ Average		5,895		2,288		2,387		(4.1	%)		95.9	%		96.1	%		(0.2	%)		155,189		162,197		(4.3	%)


Mid-Atlantic/Midwest
Washington Metro		5,487		1,759		1,766		(0.4	%)		96.5	%		96.4	%		0.1	%		111,817		112,188		(0.3	%)
Chicago, IL		601		1,460		1,504		(2.9	%)		95.8	%		96.4	%		(0.6	%)		10,086		10,453		(3.5	%)

Mid-Atlantic/Midwest Average		6,088		1,729		1,742		(0.7	%)		96.5	%		96.4	%		0.1	%		121,903		122,641		(0.6	%)


Pacific Northwest
Seattle, WA		1,943		1,282		1,331		(3.7	%)		94.2	%		95.5	%		(1.3	%)		28,151		29,629		(5.0	%)

Pacific Northwest Average		1,943		1,282		1,331		(3.7	%)		94.2	%		95.5	%		(1.3	%)		28,151		29,629		(5.0	%)


Northern California
San Jose, CA		2,542		1,893		1,973		(4.1	%)		96.4	%		96.8	%		(0.4	%)		55,640		58,257		(4.5	%)
San Francisco, CA		1,170		2,256		2,344		(3.8	%)		95.8	%		96.8	%		(1.0	%)		30,342		31,867		(4.8	%)
Oakland-East Bay, CA		720		1,493		1,577		(5.3	%)		96.7	%		96.5	%		0.2	%		12,474		13,150		(5.1	%)

Northern California Average		4,432		1,923		2,006		(4.1	%)		96.2	%		96.8	%		(0.6	%)		98,456		103,274		(4.7	%)


Southern California
Los Angeles, CA		1,447		1,598		1,691		(5.5	%)		94.3	%		95.0	%		(0.7	%)		26,165		27,885		(6.2	%)
Orange County, CA		1,174		1,417		1,479		(4.2	%)		94.0	%		95.8	%		(1.8	%)		18,775		19,972		(6.0	%)
San Diego, CA		1,058		1,486		1,492		(0.4	%)		93.8	%		95.4	%		(1.6	%)		17,706		18,075		(2.0	%)

Southern California Average		3,679		1,509		1,568		(3.8	%)		94.1	%		95.3	%		(1.2	%)		62,646		65,932		(5.0	%)


Average/Total Established		27,396	$	1,869	$	1,929		(3.1	%)		95.6	%		96.2	%		(0.6	%)	$	587,752	$	610,122		(3.7	%)


(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 3.2% between years.

Attachment 7

AvalonBay Communities, Inc.
Capitalized Community and Corporate Expenditures and Expensed Community Maintenance Costs
For the Year Ended December 31, 2009
(Dollars in thousands except per home data)


										Categorization of 2009 Add’l Capitalized Value⁽⁴⁾														2009 Maintenance Expensed Per Home⁽⁶⁾
										Acquisitions,											Non-Rev
							2009 Add’l			Construction,											Generating
	Apartment		Balance at		Balance at		Capitalized			Redevelopment			Revenue		Non-Rev						Capex			Carpet			Other
Current Communities⁽¹⁾	Homes (2)		12-31-09 (3)		12-31-08 (3)		Value			& Dispositions			Generating⁽⁵⁾		Generating			Total			Per Home			Replacement			Maintenance			Total
Total Stabilized Communities		36,125	$	5,105,451	$	5,091,081	$	14,370		$	3,021	⁽⁷⁾	$	786	$	10,563		$	14,370		$	292		$	164		$	1,793		$	1,957


Development Communities⁽⁸⁾		4,964		1,238,995		929,717		309,278			309,278			—		—			309,278			—			4			597			601

Dispositions		—		—		135,593		(135,593	)		(135,593	)		—		—			(135,593	)		—			22			268			290

Redevelopment Communities⁽⁸⁾		3,541		452,750		401,009		51,741			51,741			—		—			51,741			—			90			1,342			1,432

Corporate		—		66,176		54,174		12,002			—			—		12,002	⁽⁹⁾		12,002			—			—			—			—

Total		44,630	$	6,863,372	$	6,611,574	$	251,798		$	228,447		$	786	$	22,565		$	251,798		$	237	⁽¹⁰⁾	$	140	⁽¹¹⁾	$	1,624	⁽¹¹⁾	$	1,764	⁽¹¹⁾


(1)		For the purpose of this table, Current Communities excludes communities held by unconsolidated real estate joint ventures.

(2)		Apartment homes as of 12/31/09 does not include unconsolidated communities.

(3)		Total gross fixed assets excluding land.

(4)		Policy is to capitalize if the item exceeds $15 and extends the useful life of the asset. Personal property is capitalized if the item is a new addition and it exceeds $2.5.

(5)		Represents revenue generating or expense saving expenditures, such as water saving devices and submetering equipment.

(6)		Other maintenance includes maintenance, landscaping, redecorating and appliance replacement costs.

(7)		Represents commitment close-outs and construction true-ups on recently constructed communities.

(8)		Represents communities that were under construction/reconstruction during 2009, including communities where construction/reconstruction has been completed.

(9)		Includes amounts associated with impaired land parcels classifed as land held for development in 2008, and therefore not included in this attachment as of December 31, 2008, and capital expenditures to be incurred associated with the settlement of litigation. Remaining balance represents primarily software implementations and leasehold improvements related to corporate offices.

(10)		Total non-revenue generating capitalized costs per home excludes corporate capitalized costs.

(11)		Total 2009 maintenance expensed per home excludes maintenance costs related to dispositions.

Attachment 8

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


			Number		Number		Total
			of		of		Capital Cost (2)
			Communities		Homes		(millions)
Portfolio Additions:
2009 Actual Completions
Development				9		2,526	$	810.7
Redevelopment	(3	)		4		926		28.7


Total Additions				13		3,452	$	839.4


2008 Actual Completions
Development				13		4,036	$	1,044.3
Redevelopment	(3	)		6		1,213		27.8


Total Additions				19		5,249	$	1,072.1


Pipeline Activity:	(4	)
Currently Under Construction
Development				7		2,438	$	813.3
Redevelopment	(3	)		7		2,615		118.4


Subtotal				14		5,053	$	931.7


Planning
Development Rights				28		7,180	$	2,258.0


Total Pipeline				42		12,233	$	3,189.7


(1)		Represents activity for consolidated and unconsolidated entities.

(2)		See Attachment #17 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

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

(4)		Information represents projections and estimates.

		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 fourth quarter of 2009.

Attachment 9

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


	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 #17
Under Construction:

1. Avalon Irvine (6) Irvine, CA		100	%		279	$	77.4			Q4 2007		Q2 2009		Q1 2010		Q3 2010	$	1,750		82.4	%		74.6	%		73.8	%		56.2	%
2. Avalon Fort Greene New York, NY		100	%		631		306.8			Q4 2007		Q4 2009		Q1 2011		Q3 2011		2,740		20.3	%		33.0	%		19.8	%		4.9	%
3. Avalon Walnut Creek (7) Walnut Creek, CA		100	%		422		151.7			Q3 2008		Q2 2010		Q1 2011		Q3 2011		2,215		N/A			N/A			N/A			N/A
4. Avalon Norwalk Norwalk, CT		100	%		311		86.4			Q3 2008		Q2 2010		Q2 2011		Q4 2011		2,260		N/A			N/A			N/A			N/A
5. Avalon Towers Bellevue Bellevue, WA		100	%		396		126.1			Q4 2008		Q2 2010		Q2 2011		Q4 2011		2,390		N/A			N/A			N/A			N/A
6. Avalon Northborough II Northborough, MA		100	%		219		36.3			Q4 2009		Q2 2010		Q1 2011		Q3 2011		1,640		N/A			N/A			N/A			N/A
7. Avalon at West Long Branch West Long Branch, NJ		100	%		180		28.6			Q4 2009		Q3 2010		Q1 2011		Q3 2011		1,815		N/A			N/A			N/A			N/A


Subtotal/Weighted Average					2,438	$	813.3										$	2,250


Completed this Quarter:

1. Avalon White Plains White Plains, NY		100	%		407	$	153.0			Q2 2007		Q3 2008		Q4 2009		Q3 2010	$	2,445		100.0	%		90.4	%		88.9	%		82.2	%
2. Avalon Union City Union City, CA		100	%		439		118.7			Q3 2007		Q1 2009		Q4 2009		Q2 2010		1,535		100.0	%		90.0	%		88.4	%		76.6	%
3. Avalon at Mission Bay North III San Francisco, CA		100	%		260		147.4			Q4 2007		Q2 2009		Q4 2009		Q2 2010		3,195		100.0	%		91.2	%		88.8	%		75.1	%
4. Avalon Blue Hills Randolph, MA		100	%		276		46.1			Q2 2008		Q1 2009		Q4 2009		Q2 2010		1,390		100.0	%		94.2	%		90.6	%		74.3	%

Subtotal/Weighted Average					1,382	$	465.2										$	2,085

Total/Weighted Average					3,820	$	1,278.5										$	2,190


Weighted Average Projected NOI as a % of Total Capital Cost (1) (8)							5.5	%	Inclusive of Concessions — See Attachment #17


			Total
	# of		Capital		% Economic
Non-Stabilized Development Communities: (9)	Apt Homes		Cost (1) (millions)		Occ (1)(5)
Prior Completions:
Avalon Anaheim Stadium		251	$	98.5
Avalon Charles Pond		200		48.3
Avalon Northborough I		163		26.2

		614	$	173.0		88.4	%


Asset Cost Basis (millions), Non-Stabilized Development:				Source
Capital Cost, Prior Quarter Completions	$	173.0		Att. 9
Capital Cost, Current Completions		465.2		Att. 9
Capital Cost, Under Construction		813.3		Att. 9
Less: Remaining to Invest, Under Construction		(245.0	)	Att. 11

Total Asset Cost Basis, Non-Stabilized Development	$	1,206.5

Q4 2009 Net Operating Income/(Deficit) for communities under construction and non-stabilized development communities was $5.8 million. See Attachment #17.


(1)		See Attachment #17 — 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 January 29, 2010.

(3)		Includes apartment homes for which leases have been executed or non-refundable deposits have been paid as of January 29, 2010.

(4)		Physical occupancy based on apartment homes occupied as of January 29, 2010.

(5)		Represents Economic Occupancy for the fourth 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)		The Weighted Average calculation is based on the Company’s pro rata share of the Total Capital Cost for each community under construction and completed this quarter.

(9)		Represents Development Communities completed in prior quarters that had not achieved Stabilized Operations for the entire current quarter. Estimates are 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 fourth quarter of 2009.

Attachment 10

AvalonBay Communities, Inc.
Redevelopment Communities as of December 31, 2009


						Cost (millions)				Schedule								Avg
				# of		Pre-		Total										Rent		Homes
	Percentage			Apt		Redevelopment		Capital		Acquisition /						Restabilized		Per		Completed
	Ownership			Homes		Capital Cost		Cost (1)(2)		Completion		Start		Complete		Ops (2)		Home (2)		@ 12/31/2009
																		Inclusive of
																		Concessions
																		See Attachment #17
Under Redevelopment:

1. Avalon Woodland Hills Woodland Hills, CA		100	%		663	$	72.1	$	110.6		Q4 1997		Q4 2007		Q2 2010		Q4 2010	$	1,600		622
2. Avalon at Diamond Heights San Francisco, CA		100	%		154		25.3		30.6		Q2 1994		Q4 2007		Q4 2010		Q2 2011		2,130		75
3. Avalon Burbank (3) Burbank, CA		100	%		400		71.0		94.4		Q2 2002		Q3 2008		Q3 2010		Q1 2011		1,970		298
4. Avalon Pleasanton Pleasanton, CA		100	%		456		63.0		80.9		Q1 1994		Q2 2009		Q4 2011		Q2 2012		1,350		—
5. Avalon Watch West Windsor, NJ		100	%		512		30.2		49.9		Q4 1988		Q2 2009		Q1 2012		Q3 2012		1,455		14
6. Avalon at Cedar Ridge Daly City, CA		100	%		195		27.7		33.8		Q2 1997		Q3 2009		Q1 2011		Q3 2011		1,545		21
7. Avalon at Willow Creek Fremont, CA		100	%		235		36.5		44.0		Q1 1994		Q4 2009		Q1 2011		Q3 2011		1,480		—

Total/Weighted Average					2,615	$	325.8	$	444.2									$	1,600		1,030


(1)		Inclusive of acquisition cost.

(2)		See Attachment #17 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(3)		This community was formerly known as The Promenade.

Attachment 11

AvalonBay Communities, Inc.
Summary of Development and Redevelopment Community Activity (1) as of December 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 - 2008 Actual		2,907	$	724,962	$	758,238	$	666,623	$	820,218


2009 Actual:
Quarter 1		422	$	124,422	$	143,195	$	526,116	$	776,473
Quarter 2		719		128,785		222,384		395,611		745,907
Quarter 3		797		96,859		262,127		287,956		576,563
Quarter 4		555		101,306		181,678		245,046		500,671

Total - 2009 Actual		2,493	$	451,372	$	809,384


2010 Projected:
Quarter 1		259	$	92,724	$	92,887	$	152,322	$	491,265
Quarter 2		496		61,233		168,535		91,089		422,432
Quarter 3		533		44,421		174,164		46,668		297,998
Quarter 4		459		29,382		147,369		17,286		113,183

Total - 2010 Projected		1,747	$	227,760	$	582,955

REDEVELOPMENT


	Total Capital				Reconstruction in
	Cost Invested		Remaining to		Progress at
	During Period (3)		Invest (5)		Period End

Total - 2008 Actual	$	45,918	$	53,214	$	47,362


2009 Actual:
Quarter 1	$	12,031	$	40,056	$	40,477
Quarter 2		15,983		61,157		38,027
Quarter 3		12,868		54,489		31,389
Quarter 4		10,029		49,527		30,628

Total - 2009 Actual	$	50,911


2010 Projected:
Quarter 1	$	11,170	$	38,357	$	39,005
Quarter 2		10,566		27,791		27,172
Quarter 3		7,484		20,307		23,505
Quarter 4		6,175		14,132		13,615

Total - 2010 Projected	$	35,395


(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 redeemable noncontrolling interest.

(3)		Represents Total Capital Cost incurred or expected to be incurred during the quarter, year or in total. See Attachment #17 — 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 Q4 2009 includes $68.0 million expected to be financed by proceeds from third-party tax-exempt and taxable debt.

Attachment 12

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

DEVELOPMENT RIGHTS (1)


			Estimated		Total
			Number		Capital Cost (1)
Location of Development Right			of Homes		(millions)

	1.	Rockville Centre, NY Phase I		210	$	78
	2.	Greenburgh, NY Phase II		288		77
	3.	Seattle, WA		204		58
	4.	Lynnwood, WA Phase II		82		18
	5.	Plymouth, MA Phase II		92		20
	6.	Wilton, CT		100		30
	7.	Wood-Ridge, NJ Phase I		266		60
	8.	San Francisco, CA		173		65
	9.	New York, NY		691		307
	10.	Boston, MA		180		97
	11.	Rockville Centre, NY Phase II		139		51
	12.	Shelton, CT		251		66
	13.	Roselle Park, NJ		249		54
	14.	Garden City, NY		160		51
	15.	Wood-Ridge, NJ Phase II		140		32
	16.	Brooklyn, NY		861		443
	17.	Rockville, MD		239		57
	18.	Andover, MA		115		26
	19.	Huntington Station, NY		424		100
	20.	North Bergen, NJ		164		47
	21.	Dublin, CA Phase II		487		145
	22.	Seattle, WA II		272		81
	23.	Cohasset, MA		200		38
	24.	Stratford, CT		130		22
	25.	Tysons Corner, VA		338		87
	26.	Greenburgh, NY Phase III		156		43
	27.	Yaphank, NY		343		57
	28.	Hackensack, NJ		226		48

		Total		7,180	$	2,258


(1)		See Attachment #17 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

Attachment 13

AvalonBay Communities, Inc
Unconsolidated Real Estate Investments as of December 31, 2009
(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 (3)			Date			Debt (4)

AvalonBay Value Added Fund, LP
1. Avalon at Redondo Beach Los Angeles, CA		N/A			105	$	24,622		N/A	$	21,033	Fixed			4.87	%	Oct 2011			$	3,186
2. Avalon Lakeside Chicago, IL		N/A			204		18,231		N/A		12,056	Fixed			5.74	%	Mar 2012				1,826
3. Avalon Columbia Baltimore, MD		N/A			170		29,333		N/A		22,275	Fixed			5.48	%	Apr 2012				3,375
4. Avalon Sunset Los Angeles, CA		N/A			82		20,830		N/A		12,750	Fixed			5.41	%	Feb 2014				1,932
5. Avalon at Poplar Creek Chicago, IL		N/A			196		28,014		N/A		16,500	Fixed			4.83	%	Oct 2012				2,500
6. Avalon at Civic Center Norwalk, CA		N/A			192		42,756		N/A		27,001	Fixed			5.38	%	Aug 2013				4,091
7. Avalon Paseo Place Fremont, CA		N/A			134		24,825		N/A		11,800	Fixed			5.74	%	Nov 2013				1,788
8. Avalon at Yerba Buena San Francisco, CA		N/A			160		66,791		N/A		41,500	Fixed			5.88	%	Mar 2014				6,287
9. Avalon at Aberdeen Station Aberdeen, NJ		N/A			290		58,219		N/A		39,842	Fixed			5.64	%	Sep 2013				6,036
10. The Springs Corona, CA		N/A			320		48,392		N/A		26,000	Fixed			6.06	%	Oct 2014				3,939
11. Avalon Lombard Lombard, IL		N/A			256		35,319		N/A		17,243	Fixed			5.43	%	Jan 2014				2,612
12. Avalon Cedar Place Columbia, MD		N/A			156		24,399		N/A		12,000	Fixed			5.68	%	Feb 2014				1,818
13. Avalon Centerpoint Baltimore, MD		N/A			392		79,535		N/A		45,000	Fixed			5.74	%	Dec 2013				6,818
14. Middlesex Crossing Billerica, MA		N/A			252		38,043		N/A		24,100	Fixed			5.49	%	Dec 2013				3,651
15. Avalon Crystal Hill Ponoma, NY		N/A			168		38,601		N/A		24,500	Fixed			5.43	%	Dec 2013				3,712
16. Avalon Skyway San Jose, CA		N/A			348		77,993		N/A		37,500	Fixed			6.11	%	Mar 2014				5,681
17. Avalon Rutherford Station East Rutherford, NJ		N/A			108		36,771		N/A		20,094	Fixed			6.13	%	Sep 2016				3,044
18. South Hills Apartments West Covina, CA		N/A			85		24,756		N/A		11,761	Fixed			5.92	%	Dec 2013				1,782
19. Weymouth Place Weymouth, MA		N/A			211		25,298		N/A		13,455	Fixed			5.12	%	Mar 2015				2,038

		15.2	%		3,829	$	742,728	$	106,124	$	436,410				5.6	%				$	66,116


AvalonBay Value Added Fund II, LP
1. Avalon Bellevue Park Bellevue, WA		N/A			220	$	33,329		N/A	$	21,515	Fixed			5.52	%	Jun 2019			$	6,723
2. The Hermitage Fairfax, VA		N/A			491		71,001		N/A		—		N/A		—			N/A			—
Fund II corporate debt		N/A			N/A		N/A		N/A		30,200	Variable			2.73	%		2010	(8)		9,438

		31.3	%		711	$	104,330	$	39,269	$	51,715				3.9	%				$	16,161


Other Operating Joint Ventures
1. Avalon Chrystie Place I (5) New York, NY		20.0	%		361	$	135,270		25,086	$	117,000	Variable			0.92	%	Nov 2036			$	23,400
2. Avalon at Mission Bay North II (5) San Francisco, CA		25.0	%		313		123,883		28,128		105,000	Fixed			6.02	%	Dec 2015				26,250
3. Avalon Del Rey Los Angeles, CA		30.0	%		309		70,037		18,170		45,943	Variable			3.69	%	Apr 2016				13,783
Other Development Joint Ventures
1. Aria at Hathorne (6) (7) Danvers, MA		50.0	%		64		N/A		4,720		2,432	Variable			4.19	%	Jun 2010			$	1,216

					1,047	$	329,190	$	76,104	$	270,375				3.4	%				$	64,649

					5,587	$	1,176,248	$	221,497	$	758,500				4.7	%				$	146,926


(1)		See Attachment #17 — 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)		Represents weighted average rate on outstanding debt.

(4)		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.

(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.

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

(8)		As of December 31, 2009, these borrowings are drawn under an unsecured credit facility maturing in December 2010.

Attachment 14

AvalonBay Communities, Inc.
Summary of Disposition Activity (1) as of December 31, 2009
(Dollars in thousands)

Accumulated

Weighted Average

Number of

Gross Sales

Depreciation

Economic

Initial Year

Weighted Average

Communities Sold (2)

Price

GAAP Gain

and Other

Gain (4)

Mkt. Cap Rate (3)(4)

Unleveraged IRR (3)(4)

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 (5)

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 (6)

382,720

199,767

14,929

184,838

3.8

18.0

2006:

4 Communities, 3 Land Parcels (7)

281,485

117,539

21,699

95,840

4.6

15.2

2007:

5 Communities, 1 Land Parcel (8)

273,896

163,352

17,588

145,764

4.6

17.8

2008:

11 Communities (9)

646,200

288,384

56,469

231,915

5.1

14.1

2009:

5 Communities, 2 Land Parcels (10)

193,186

68,717

16,692

52,025

6.5

13.0

1998 - 2009 Total

3,458,403

1,369,509

285,245

1,084,264

5.8

15.3


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

(2)		For dispositions from January 1, 1998 through December 31, 2009 the Weighted Average Holding Period is 7.6 years.

(3)		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.

(4)		See Attachment #17 — Definitions and Reconciliations of Non-GAAP Financial Measures and Other Terms.

(5)		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.

(6)		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.

(7)		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.

(8)		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.

(9)		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.

(10)		2009 GAAP and Economic Gain include the recognition of approximately $2,770 in deferred gains for six prior year dispositions, recognition of which occurred in conjunction with the November 2009 settlement of previously disclosed litigation with The Equal Rights Center, involving accessibility of our communities.

Attachment 15

2010 Financial Outlook
As of February 3, 2010

(Dollars in millions, except per share data)


	United			AvalonBay
	States			Markets
Job Growth Data & Assumptions
2009 Actual job growth		(3.7	%)		(3.0	%)
2010 Expected job growth⁽¹⁾		(0.7	%)		(0.7	%)


	Annual 2010
LIBOR Assumption	.25% to .50%
Earnings per Share	$	1.60 to $1.85
Less — Net gain on asset sales, per share	$	0.75 to $1.00
Plus — Real estate depreciation, per share	$	2.75 to $3.00
Funds from Operations (FFO) per share⁽²⁾	$	3.60 to $3.85

FFO per Share Change at the Mid-Point of Outlook Ranges
Projected FFO per share change		(4.2	%)
Projected FFO per share change adjusted for non-routine items in 2009 and 2010		(16.5	%)

Established Communities⁽²⁾
Rental revenue change	(3.0%) to (4.5%)
Operating expense change	(1.0%) to 1.0%
Net Operating Income change	(5.0%) to (7.0%)

Development Activity


	Total
Cash disbursed for Development Communities⁽²⁾and land for future development	$	450 to $550
Development Community⁽²⁾completions	$	77
Number of apartment homes delivered in 2010		1,850

Disposition Activity

Disposition volume	$	180 to $200

Financing Activity — Sources (Uses)

New capital markets activity	$	200
Debt maturities		($120	)
Weighted average interest rate on maturing debt		6.1	%

Capitalized Interest	$	40 to $50

Change in Expensed Overhead (Corporate G&A, Property and Investment Management)	0% to 10%


(1)		Moody’s Economy.com annual non-farm job growth forecast as of December 2009

(2)		This term is a non-GAAP measure or other term that is described more fully on Attachment 17.

This chart contains forward-looking statements. Please see the the paragraph regarding forward-looking statements on the Table of Contents page relating to the Company’s Supplemental Operating and Financial Data for the fourth quarter of 2009.

Attachment 16

Projected Sources and Uses of Cash

(Dollars in Millions)


	*Annual*
	*2010*(1)

Sources of Funds:
Cash from Operations / Cash on Hand(2)	$	400
Draws on Credit Facility(3)		310
Dispositions		190
New Capital Markets Activity		200

*Total Sources of Funds*	$	1,100


Uses of Funds:
Development Activity, Including Investments in Land for Future Development	$	500
Redevelopment and Other Investment Activity		180

		680

Secured and Unsecured Debt Redemptions and Amortization		150
Common Stock Dividends		270

*Total Uses of Funds*	$	1,100


(1)		Amounts represent midpoints of management’s expected ranges for 2010.

(2)		Includes use of existing funds in escrow from construction loans.

(3)		Represents net draws during 2010 on the Company’s $1 billion unsecured credit facility, which had no balance outstanding at December 31, 2009.

Attachment 17

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):


	Q4			Q4			Full Year			Full Year
	2009			2008			2009			2008

Net income attributable to the Company	$	32,394		$	2,123		$	155,647		$	411,487
Dividends attributable to preferred stock		—			(3,929	)		—			(10,454	)
Depreciation — real estate assets, including discontinued operations and joint venture adjustments		57,524			51,776			221,415			203,082
Distributions to noncontrolling interests, including discontinued operations		14			44			66			216
Gain on sale of unconsolidated entities holding previously depreciated real estate assets		—			—			—			(3,483	)
Gain on sale of previously depreciated real estate assets		(37,217	)		(27,051	)		(63,887	)		(284,901	)


FFO attributable to common stockholders	$	52,715		$	22,963		$	313,241		$	315,947


Average shares outstanding — diluted		81,869,688			77,734,587			80,599,657			77,578,852
Earnings per share — diluted	$	0.40		$	(0.02	)	$	1.93		$	5.17

FFO per common share — diluted	$	0.64		$	0.30		$	3.89		$	4.07

Attachment 17 (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 first quarter and full year 2010 to the range provided for Projected EPS (diluted) is as follows:


	Low			High
	range			range

Projected EPS (diluted) — Q1 10	$	1.06		$	1.12
Projected depreciation (real estate related)		0.69			0.71
Projected gain on sale of operating communities		(0.86	)		(0.90	)

Projected FFO per share (diluted) — Q1 10	$	0.89		$	0.93


Projected EPS (diluted) — Full Year 2010	$	1.60		$	1.85
Projected depreciation (real estate related)		2.75			3.00
Projected gain on sale of operating communities		(0.75	)		(1.00	)


Projected FFO per share (diluted) — Full Year 2010	$	3.60		$	3.85

The Company’s results for the quarter and year ended December 31, 2009 and the comparable prior year periods include the non-routine items outlined in the following table:

Non-Routine Items
Decrease (Increase) in Net Income and
FFO (dollars in thousands)


				Full Year						Full Year
	Q4 08			2008			Q4 09			2009
Land impairments	$	57,899		$	57,899		$	850		$	21,152
Abandoned pursuits (1)		6,611			6,611			—			1,139
Severance and related costs		3,400			3,400			2,500			4,500
Federal excise tax		3,200			3,200			1,000	(3)		515
(Gain) loss on unsecured notes repurchase		(1,839	)		(1,839	)		26,972	(3)		25,910
Gain on sale of land		—			—			(4,589	)		(4,830	)
Joint venture income adjustment (2)		—			—			2,600			(1,294	)
Legal settlement proceeds, net		—			—			(75)	(3)		(1,175	)
Preferred stock deferred offering expenses		3,566			3,566			—			—
Fund II organizational costs		—			1,209			—			—


Total non-routine items	$	72,837		$	74,046		$	29,258		$	45,917


Weighted Average Dilutive Shares Outstanding		77,734,587			77,578,852			81,869,688			80,599,657


(1)		For purposes of non-routine classification, abandoned pursuits includes costs expensed by the Company for individual pursuits in excess of $1,000 in a given quarter.

(2)		Includes the Company’s promoted interest of $3,894 in joint venture, and the Company’s pro-rata portion of an impairment charge on a community in an unconsolidated joint venture of $2,600.

(3)		Non-routine item was included in the Company’s full year 2009 Outlook provided in November 2009. The Company’s outlook included $2,900 for federal excise tax.

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

Attachment 17 (continued)

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 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):


	Q4			Q4			Full Year			Full Year
	2009			2008			2009			2008

Net income	$	32,350		$	1,866		$	154,274		$	410,746
Indirect operating expenses, net of corporate income		7,392			7,839			30,315			33,010
Investments and investment management expense		1,045			1,145			3,844			4,787
Expensed development and other pursuit costs		746			9,467			5,842			12,511
Interest expense, net		42,107			30,829			150,323			114,910
Loss (gain) on extinguishment of debt, net		26,972			(1,839	)		25,910			(1,839	)
General and administrative expense		10,360			15,960			28,748			42,781
Joint venture loss (income)		2,698			(238	)		(1,441	)		(4,566	)
Depreciation expense		55,392			48,592			209,746			183,748
Impairment loss — land holdings		850			57,899			21,152			57,899
Gain on sale of real estate assets		(41,806	)		(27,051	)		(68,717	)		(284,901	)
Income from discontinued operations		(2,570	)		(4,564	)		(13,974	)		(27,353	)

NOI from continuing operations	$	135,536		$	139,905		$	546,022		$	541,733


Established:
New England	$	18,365		$	20,398		$	75,766		$	81,887
Metro NY/NJ		24,663			27,938			103,558			111,859
Mid-Atlantic/Midwest		18,631			19,888			74,983			77,639
Pacific NW		4,160			5,316			19,101			21,070
No. California		16,242			19,373			70,819			76,875
So. California		10,352			11,819			42,900			47,504

Total Established		92,413			104,732			387,127			416,834

Other Stabilized		20,220			21,202			81,517			67,289
Development/Redevelopment		22,903			13,971			77,378			57,610

NOI from continuing operations	$	135,536		$	139,905		$	546,022		$	541,733

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 December 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):

Attachment 17 (continued)


	Q4		Q4		Full Year		Full Year
	2009		2008		2009		2008

Income from discontinued operations	$	2,570	$	4,564	$	13,974	$	27,353
Interest expense, net		—		444		681		3,297
Depreciation expense		1,200		2,363		8,540		15,704

NOI from discontinued operations	$	3,770	$	7,371	$	23,195	$	46,354


NOI from assets sold	$	571	$	3,935	$	9,913	$	32,695
NOI from assets held for sale		3,199		3,436		13,282		13,659

NOI from discontinued operations	$	3,770	$	7,371	$	23,195	$	46,354

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 Communities, on an aggregated weighted average basis, assists investors in understanding management’s estimate of the likely impact on operations of the Development 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 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 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.

Attachment 17 (continued)

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):


	Q4			Q4			Full Year			Full Year
	2009			2008			2009			2008
Rental revenue (GAAP basis)	$	143,199		$	152,424		$	587,752		$	610,122
Concessions amortized		1,723			1,915			8,000			6,771
Concessions granted		(717	)		(2,204	)		(6,361	)		(8,004	)

Rental revenue (with
concessions on a cash basis)	$	144,205		$	152,135		$	589,391		$	608,889


% change — GAAP revenue					(6.1	%)					(3.7	%)

% change — cash revenue					(5.2	%)					(3.2	%)

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 full year ended December 31, 2009 as well as prior years’ activities is presented on Attachment 14.

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.

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


Net income attributable to the Company	$	32,394
Interest expense, net		42,107
Interest expense (discontinued operations)		—
Depreciation expense		55,392
Depreciation expense (discontinued operations)		1,200

EBITDA	$	131,093


EBITDA from continuing operations	$	90,106
EBITDA from discontinued operations		40,987

EBITDA	$	131,093


EBITDA from continuing operations	$	90,106
Land gains		(4,589	)


EBITDA from continuing operations, excluding land gains	$	85,517


Interest charges	$	42,107


Interest coverage (1)		2.0


(1)		Adjusted to remove the impact of the October 2009 tender offer, interest coverage is 2.7 times.

Attachment 17 (continued)

Total Capital Costincludes 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 13, Total Capital Cost is equal to gross real estate cost.

Initial Year Market Cap Rateis 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 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 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 full year December 31, 2009 is as follows (dollars in thousands):

Attachment 17 (continued)


NOI for Established Communities	$	387,127
NOI for Other Stabilized Communities		81,517
NOI for Development/Redevelopment Communities		77,378

Total NOI generated by real estate assets		546,022
NOI on encumbered assets		192,389

NOI on unencumbered assets		353,633


Unencumbered NOI		65	%

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 during the current year. These communities may be partially or fully 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 community’s 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 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.

AvalonBay Communities (AVB) 8-KResults of Operations and Financial Condition