Third-quarter same-store expenses increased 4.7% over the same period last year, driven primarily by increases in property taxes, utilities and insurance costs. As a result, third quarter same-store net operating income decreased 4.3%; year to date same-store NOI decreased 1.9% from 2001. On a sequential basis, Archstone-Smith's third quarter same-store revenues decreased 0.4% from the second quarter of 2002.

"We continue to be pleased with our operating performance during these very challenging economic times," says R. Scot Sellers, chairman and chief executive officer. "Our emphasis on customer service and innovative operating initiatives such as revenue management are producing solid relative performance for Archstone-Smith, during a difficult time for the apartment industry."

Also, Ameriton Properties Inc. completed the sale of one development community during the third quarter. This disposition contributed approximately $11.2 million, or $0.05 per share, to Archstone-Smith's third quarter funds from operations.