The company reported fourth quarter 2002 earnings per share of 56 cents per share, compared with 37 cents per share for the same period in 2001. And its funds from operations, one of the most important measures of a REIT's health, rose to 63 cents per share, compared with 51 cents in the fourth quarter 2001.

"The year 2002 was a very challenging year for our nation's economy and for the apartment industry," says R. Scott Sellers, chairman and CEO. "We are very pleased that in this difficult environment our same-store revenue for the year was down only 0.4%, underscoring the benefit of owning apartments in protected markets." By protected markets, he means those with great barriers of entry. "In addition, our continued focus on improving our core operating platform, which is the foundation of our business, places us in an excellent position to benefit from the economic recovery when it occurs," Sellers adds.

Fourth quarter same-store revenues decreased 1.5% over the same period last year, and fourth quarter same-store net operating income decreased 4.3%. Fourth quarter same-store expenses increased 4.6% over the same period last year, driven primarily by higher real estate taxes and insurance.

The company's fourth quarter results included gains from the sale of Consolidated Engineering Services Inc., which contributed $35.4 million, or $0.16 per share, to Archstone-Smith's earnings and FFO. Results during the quarter also included gains from the sale of apartment communities by Ameriton Properties Inc., which contributed $2.2 million, or $0.01 per share, to the company's FFO.

During the fourth quarter, Archstone-Smith sold $243.6 million of properties at an average capitalization rate of 7.0%, which produced total gains of $60.5 million. This disposition volume included the sale of a 32 year-old high-rise asset for $113.8 million in the company's Washington, D.C. market at a capitalization rate of 6.2%, which produced a gain of $23.8 million. Including the fourth quarter dispositions, the company completed over $420 million of dispositions of non-core assets in 2002, which produced total gains of $108.9 million. The company's average unleveraged internal rate of return from its 2002 dispositions was 18.6%, as of December 31.