"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.

"We have acted with care all year, increasing our corporate liquidity and preparing for slower times," says Executive Vice President & Chief Financial Officer Robert Chapman."Our current operating results reflect less investing activity than we had hoped to accomplish this year, but we believe we have been rewarded for being more cautious to date as we, and our acquisition co-investment partners, expect to see better priced investment opportunities in the near future."