"The slowing economy, coupled with the tragic events of September 11, are clearly having an adverse effect on the results of our community operations and transaction activities for this year," says AMLI President and Co-CEO Allan Sweet. "What is not as clear is how our communities will perform going into 2002 given the current political and economic situation facing our country."

Question marks not only include occupancy rates and rent levels, but such costs as property insurance, Sweet explains. The REIT hopes to provide a clearer picture on its short-term financial during its quarterly conference call later this month.

AMLI says it already had taken a cautious approach, including doing fewer deals than anticipated.