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                         Avalon: Dividend News Release

For Immediate Release November 18, 1998

AVALONBAY COMMUNITIES DECLARES
INITIAL DIVIDEND FOR SERIES H PREFERRED STOCK


        AVALONBAY COMMUNITIES, INC. (NYSE/PCX Symbol: AVB) announced today that
its Board of Directors declared the initial and partial dividend on the
Company's Series H Cumulative Redeemable Preferred Stock. The dividend is
payable on December 15, 1998 to all Series H shareholders of record as of
December 3, 1998.  The Series H Cumulative Redeemable Preferred Stock dividend
is .3625 and represents the prorata dividend for the short period beginning
October 15, 1998 (settlement date) through December 14, 1998. 
        
AvalonBay, named the NAHB Development Company of the year for 1998/1999 and the
Property Management Company of the Year for 1996/1997, owns or holds an
ownership interest in 131 apartment communities containing 38,592 apartment
homes in sixteen states and the District of Columbia. Thirteen of these
communities containing 4,855 apartment homes are presently under
reconstruction.  Fifteen communities which will contain 3,972 apartment homes
are presently under construction.    AvalonBay is an equity REIT in the
business of developing, redeveloping, acquiring and managing multifamily
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.   For additional information, please contact Richard
L. Michaux, CEO, at (703) 317-4602 or Thomas J. Sargeant, CFO, at (703)
317-4635.

This announcement contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934.  The words "foreseeable," "expect," "anticipate,"
"estimate," "projected," "budgeted" and other similar expressions which are
predictions of or indicate future events and trends that do not relate solely
to historical matters, including information concerning the Company's future
FFO estimates, identify forward-looking statements.  Reliance should not be
placed on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors, which are in some cases beyond the
control of the Company and may cause the actual results, performance or
achievements of the Company to differ materially from anticipated future
results.  No assurance can be provided that the anticipated benefits of this
merger will be realized.  Factors that impact the Company's ability to meet
these forward-looking statements include, but are not limited to, the market
acceptance of the Company's new developments, local market conditions, the
ability to achieve projected costs, occupancy levels and revenues, the ability
to successful integrate the merged companies and other factors discussed
periodically in the Company's reports filed with the Securities and Exchange
Commission.

Copyright (c) 1998 AvalonBay Communities, Inc. All Rights Reserved




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