10-QPeriod: Q2 FY2003

AVALONBAY COMMUNITIES INC Quarterly Report for Q2 Ended Jun 30, 2003

Filed August 8, 2003For Securities:AVB

Summary

AvalonBay Communities Inc. (AVB) filed its quarterly report on August 8, 2003, for the period ending June 30, 2003. The company reported no material changes in its market risk exposures since the end of the previous fiscal year. Management, including the CEO and CFO, has concluded that the company's disclosure controls and procedures are effective. Similarly, there have been no changes in the company's internal control over financial reporting that would materially affect its effectiveness. Key operational events during the quarter include the redemption of all outstanding shares of its Series J Cumulative Redeemable Preferred Stock on May 9, 2003. The company is also involved in ongoing litigation concerning the Avalon Willow community construction, stemming from the termination of its construction manager in October 1999. While the company is actively contesting claims and pursuing counterclaims, it does not anticipate a material impact on its business or financial condition from this litigation.

Key Highlights

  • 1No material changes in market risk exposures since December 31, 2002.
  • 2Disclosure controls and procedures deemed effective by management as of June 30, 2003.
  • 3No material changes in internal control over financial reporting during the quarter.
  • 4Redemption of all outstanding Series J Cumulative Redeemable Preferred Stock on May 9, 2003.
  • 5Active litigation with York Hunter Construction, Inc. and National Union Fire Insurance Company regarding the Avalon Willow community is ongoing.
  • 6Company believes it has meritorious defenses in the litigation and does not expect a material impact on its financial condition.
  • 7Directors were elected at the 2003 Annual Stockholders Meeting on May 14, 2003, with substantial shareholder support.

Frequently Asked Questions

AvalonBay reported no material changes in its exposures to market risk since December 31, 2002. This indicates stability in the company's exposure to factors like interest rate fluctuations or other market variables during the period.

AvalonBay is involved in significant litigation with York Hunter Construction, Inc. and National Union Fire Insurance Company related to the Avalon Willow community. The company is contesting claims, pursuing counterclaims, and based on legal counsel, believes it has strong defenses. It does not expect the litigation to have a material impact on its financial condition.

No. Management, including the CEO and CFO, has assessed and concluded that the company's disclosure controls and procedures are effective. Furthermore, there were no changes in the internal control over financial reporting during the period that have materially affected, or are likely to materially affect, its effectiveness.

The most notable corporate action was the redemption of all outstanding shares of its Series J Cumulative Redeemable Preferred Stock on May 9, 2003. Additionally, directors were elected at the company's Annual Stockholders Meeting on May 14, 2003.