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Safe harbor language

In addition to historical information, this presentation contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith and/or Ameriton Properties, Inc. operates, management’s beliefs and assumptions made by management. While Archstone-Smith and/or Ameriton Properties, Inc. management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management’s control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this presentation and supplemental information. See “Risk Factors” in Archstone-Smith’s 2003 Annual Report on Form 10-K for factors which could affect Archstone-Smith’s future financial performance. All forward-looking statements in this presentation are made as of today, based upon information known to management as of the date hereof, and Archstone-Smith assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that indicated results or events will not be realized.

Renting vs. owning in our core markets
Difference between monthly PITI and ASN rent

[The following table was depicted as a bar chart in the presentation.]


	Monthly		ASN monthly
	PITI⁽²⁾		rent⁽³⁾
Connecticut Heights, Washington, D.C. 20008 Median home price¹: $663,000	$	4,102	$	1,225
ASN La Jolla, San Diego, CA 92037 Median home price¹: $940,000	$	5,816	$	1,431
Redwood Shores, San Francisco, CA 94065 Median home price¹: $618,500	$	3,827	$	1,365
One Superior Place, Chicago, IL 60611 Median home price¹: $353,000	$	2,184	$	1,486
New River Village, Southeast Florida 33301 Median home price¹: $445,000	$	2,753	$	1,521
ASN Canton, Boston, MA 02021 Median home price¹: $382,000	$	2,364	$	1,560
Redmond Hill, Seattle, WA 98052 Median home price¹: $286,000	$	1,770	$	823
Park Hudson, New York City 10023 Median home price¹: $765,000	$	4,734	$	2,676

(1) Median home price as of August 2004 for the same zip code as the corresponding Archstone-Smith apartment community.

(2) Estimated monthly house payment assuming a 6.0% interest rate on a 30-year amortizing mortgage with 10% down, 0.35% for homeowner’s insurance, 2.0% for real estate taxes, 0.5% for mortgage insurance and net of income tax benefit of 25%.

(3) Represents Archstone-Smith’s Potential Effective Rents as of June 2004, as defined in footnote 5 on page 10 of the company’s second quarter 2004 press release supplement.

Operations matters!

Reported same-store NOI growth


										2004			3 3/4
Company	2001⁽¹⁾			2002⁽¹⁾			2003⁽¹⁾			YTD⁽²⁾			NOI growth
Archstone-Smith⁽³⁾		6.5	%		(2.7	%)		(1.3	%)		(2.4	%)		(0.2	%)
United Dominion		2.8	%		(0.8	%)		(4.0	%)		(2.1	%)		(4.2	%)
BRE Properties		7.3	%		(4.5	%)		(6.0	%)		(1.0	%)		(4.6	%)
Camden		3.8	%		(5.3	%)		(5.0	%)		0.5	%		(6.1	%)
Essex		5.7	%		(8.3	%)		(4.1	%)		0.4	%		(6.7	%)
Equity Residential		3.9	%		(4.9	%)		(6.7	%)		(1.2	%)		(8.9	%)
Gables		1.5	%		(4.3	%)		(3.8	%)		(5.4	%)		(11.6	%)
Avalon Bay		7.7	%		(10.0	%)		(8.2	%)		(1.9	%)		(12.7	%)
Summit		(0.4	%)		(8.6	%)		(5.4	%)		1.1	%		(12.9	%)
AIMCO		3.8	%		(2.0	%)		(10.3	%)		(6.5	%)		(14.7	%)
Post Properties		(1.4	%)		(10.2	%)		(6.0	%)		(1.9	%)		(18.4	%)
Simple Average without ASN		3.5	%		(5.9	%)		(6.0	%)		(1.8	%)		(10.1	%)

(1) Per green Street Advisor’s 2Q04 Apartment REIT Update, except for Archstone-Smith figures, which are actual reported results.

(2) Per companies’ 3Q04 earnings release for same-store results through September 30, 2004.

(3) See footnote 3 on page 29 for a reconciliation of Archstone-Smith’s same-store NOI to GAAP Earnings from Operations.

Strong balance sheet and financial flexibility

• Strong investment grade ratings (BBB+ / Baa1 / BBB+)

• Company is currently under-leveraged relative to targeted levels¹

- 43% debt to undepreciated book capitalization

- 37% debt to total market capitalization

• Minimal floating rate debt exposure: 13% currently

• $940 million of liquidity²

- $245 million of cash

• Very manageable 20-year debt maturity

1) Leverage ratios as of September 30, 2004.

2) Includes cash on hand, cash in tax-deferred exchange accounts and availability on Archstone-Smith’s unsecured lines of credit as of November 15, 2004.

Archstone-Smith 2005 growth drivers

• Anticipate substantially improved NOI growth

• Accretion from positive spread investing

• Recurring Ameriton gains – $0.07 of anticipated FFO from 2005 sales already under contract with non-refundable earnest money hard

- Plus significant incremental profit opportunity

• Refinance $323 million of debt – 7.4% current interest rate

• Preferred share redemptions – $112 million in 2004 and 2005 – 8.5% average coupon rate

• Common share repurchases

• Excess balance sheet capacity

- Over $245 million of cash to invest

(ARCHSTONE SMITH LOGO)
Third Quarter 2004
Table of Contents


		Page
Earnings Release		1 - 2
Financial Highlights		3
Statements of Earnings		4 - 5
Balance Sheets		6
Geographic Distribution by Market		7
Operating Performance Summary		8 - 9
Investment Summary		10
Development Summary		11
Capitalization Summary		12
Debt Summary		13
Supplemental Information for Net Asset Value Calculation		14

Corporate Headquarters Address:
9200 E. Panorama Circle, Suite 400
Englewood, Colorado
(303) 708-5959

Note: This press release supplement contains certain non-GAAP financial measures that management believes are helpful in understanding our business, as further described within this press release supplement. These financial measures, which include but are not limited to EBITDA, EBITDA Without Gains, Funds From Operations, Funds From Operations with Gains/Losses and Same-Store Sales, should not be considered as an alternative to net earnings or any other GAAP measurement of performance or as an alternative to cash flows from operating, investing or financing activities. Furthermore, these non-GAAP financial measures are not intended to be a measure of cash flow or liquidity.

Information included in this supplemental package is unaudited.

(ARCHSTONE SMITH LOGO)

News Release


Contact:		Jack R. Callison, Jr.
		800-982-9293 • 303-708-5959

Archstone-Smith Announces Third Quarter 2004 Results
Company Increases 2004 Earnings Guidance

DENVER — November 3, 2004 — Archstone-Smith (NYSE:ASN) announced today that its net earnings per share (EPS) for the quarter ended September 30, 2004, was $0.70 per share, compared with $0.79 for the same period in 2003. The company’s funds from operations (FFO) with gains/losses, which reflects the impact of Archstone-Smith’s capital recycling program, was $0.79 per share in the third quarter, compared with $0.79 per share for the third quarter in 2003. The company’s FFO was $0.56 per share in the third quarter of 2004, compared with $0.47 per share for the same period last year.

In addition, Archstone-Smith is increasing its 2004 guidance as follows:


	Full Year 2004
	Revised Guidance
Earnings Per Share	$	2.30 - $2.77
FFO with Gains/Losses	$	2.93 - $3.32
FFO	$	1.99 - $2.03

The company’s increased 2004 guidance contemplates the dilutive impact of holding cash from its disposition activity. Currently, the company has approximately $215.0 million in cash, including cash on hand and cash held in tax-deferred exchange accounts.

Same-store Portfolio Produces Positive Revenue Growth

Archstone-Smith’s same-store portfolio produced positive year-over-year revenue growth for the first time in 10 quarters. Same-store revenues were up 0.6% from the same period last year. The greater Washington, D.C. metropolitan area, Southern California and Southeast Florida, which collectively represent over 60% of the company’s portfolio, produced same-store revenue growth of 2.4%, 3.0% and 2.8%, respectively. Sequentially, the company’s same-store revenues were up 0.7%. Year-over-year, the company’s same-store expenses increased by 3.7% from the third quarter of 2003, which was in line with expectations; net operating income (NOI) decreased 1.0%.

“We are pleased to achieve positive same-store revenue growth in our portfolio as pricing power returns to our core markets,” said R. Scot Sellers, chairman and chief executive officer. “We are optimistic that both our same-store revenue and NOI growth will continue to steadily improve as we move into 2005, reflecting the increases in rental rates we have implemented in many of our markets during the last several months.”

Ameriton Continues to Create Significant Value for Archstone-Smith

Archstone-Smith’s third quarter results include significant gains from the sale of apartment communities by Ameriton, which contributed $35.5 million, or $0.16, to the company’s EPS and $34.3 million, or $0.15 per share, to its third quarter FFO with gains/losses and FFO. During the third quarter, Ameriton completed the sale of $303.5 million of assets, representing 2,060 units. The weighted average unleveraged pre-tax internal rate of return (IRR) was 23%.

–more–

Archstone-Smith Reports 3Q04 Results
Page 2

“Ameriton is an extremely profitable franchise for us,” said Mr. Sellers. “We are proud of the impressive track record Ameriton’s team has established over the past four years, and look forward to leveraging this important investment vehicle to continue to produce attractive returns for our shareholders.”

In addition, Archstone-Smith’s third quarter 2004 results include the following items: (i) a $7.7 million gain, or $0.035 per share, from the sale of previously acquired stock in another public apartment company; (ii) a $1.3 million gain, or $0.006 per share, related to the sale of a land parcel; (iii) a one-time charge of $2.6 million, or $0.012 per share, related to the write-off of preferred stock issuance costs in connection with the redemption of $81 million of preferred stock and units; and (iv) a one-time expense of $4.9 million, or $0.022 per share, related to hurricane damage in Florida. This hurricane expense does not include any of the insurance recoveries the company expects to receive as the outstanding claims are resolved over the next several quarters. The company is confident it will receive insurance recoveries, although the precise amount is not yet quantifiable at this time.

Archstone-Smith Declares 117^th Consecutive Common Share Dividend

Archstone-Smith also announced that its Board declared the company’s 117^th consecutive quarterly common share dividend. The company will pay a dividend of $0.43 per common share payable on November 30, 2004 to shareholders of record as of November 16, 2004. On an annualized basis, this represents a dividend of $1.72 per common share.

Archstone-Smith (NYSE: ASN) is a recognized leader in apartment investment and operations. With a current total market capitalization of $11.7 billion, Archstone-Smith owns and operates an irreplaceable portfolio of high-rise and garden apartment communities concentrated in many of the most desirable neighborhoods in the greater Washington, D.C. metropolitan area, Southern California, the San Francisco Bay area, Chicago, Boston, the greater New York City metropolitan area, Southeast Florida and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments with even better growth prospects. Through its two brands, Archstone and Charles E. Smith, Archstone-Smith strives to provide great apartments and great service to its customers — backed by unconditional 100% satisfaction guarantees. As of September 30, 2004, Archstone-Smith owned or had an ownership position in 240 communities, representing 83,355 units, including communities under construction.

Archstone-Smith is recognized as one of America’s Most Admired Companies for 2004 by Fortune Magazine and ranks 956 on the Forbes 2000 List, the magazine’s comprehensive ranking of the world’s largest companies, for 2004. In addition, the company was recognized as Colorado’s Top Real Estate Company for 2004 by Colorado Biz Magazine. To find out more, visit ArchstoneSmith.com.

###

Archstone-Smith’s press releases are available on the company’s web site at ArchstoneSmith.com or by calling (800) 982-9293.

In addition to historical information, this press release and quarterly supplemental information contain forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Archstone-Smith operates, management’s beliefs and assumptions made by management. While Archstone-Smith management believes the assumptions underlying its forward-looking statements and information are reasonable, such information is necessarily subject to uncertainties and may involve certain risks, many of which are difficult to predict and are beyond management’s control. As such, these statements and information are not guarantees of future performance, and actual operating results may differ materially from what is expressed or forecasted in this press release and supplemental information. See “Risk Factors” in Archstone-Smith’s 2003 Annual Report on Form 10-K for factors which could affect Archstone-Smith’s future financial performance.

(ARCHSTONE SMITH LOGO)
Third Quarter 2004

Financial Highlights⁽¹⁾
In thousands, except per share amounts and percentages


	Three Months Ended September 30,							Nine Months Ended September 30,
	2004		2003		% Change			2004		2003		% Change
Operating Performance
Net Earnings Attributable to Common Shares - Diluted	$	138,660	$	154,745		(10.4	%)	$	314,935	$	301,068		4.6	%
Per Share Results:
Net Earnings	$	0.70	$	0.79		(11.4	%)	$	1.58	$	1.55		1.9	%
Funds from Operations with Gains/Losses ⁽²⁾	$	0.79	$	0.79		0.0	%	$	2.05	$	1.80		13.9	%
Funds from Operations (FFO)⁽³⁾	$	0.56	$	0.47		19.1	%	$	1.59	$	1.28		24.2	%
Cash Distributions per Common Share	$	0.43	$	0.4275		0.6	%	$	1.29	$	1.2825		0.6	%


	September 30,			December 31,
	2004			2003
Financial Position
Assets
Real Estate (Including Held for Sale Before Depreciation)	$	9,314,650		$	8,999,180
Total Assets (Net of Accumulated Depreciation)	$	9,077,777		$	8,921,695
Debt
Long Term Debt (Including Held for Sale)	$	4,112,086		$	3,799,590
Total Debt	$	4,112,086		$	3,903,380
Leverage Ratios
Long Term Debt/Long Term Undepreciated Book Capitalization⁽⁴⁾		43.2	%		41.4	%
Total Debt/Total Undepreciated Book Capitalization ⁽⁴⁾		43.2	%		42.0	%
Equity Market Capitalization ⁽⁵⁾
Common Shares and Units	$	6,978,360		$	6,157,363
Convertible Preferred Shares		40,056			72,272
Perpetual Preferred Shares and Units		80,000			163,673

Total Equity Market Capitalization	$	7,098,416		$	6,393,308

Total Market Capitalization ⁽⁶⁾	$	11,210,502		$	10,296,688

Fully Converted Shares ⁽⁷⁾		223,142			223,850

NOTES

(1) The results of Ameriton Properties Incorporated have been consolidated in the Statement of Earnings and Balance Sheets for all periods presented.

(2) Calculated as FFO (defined below) plus Gross Gains/Losses from the disposition of real estate investments. Gross Gains/Losses from the disposition of real estate investments is defined as net sales proceeds less the gross investment basis of the asset before accumulated depreciation and impairment for possible loss on real estate investments. Joint venture gain/loss deferrals required under GAAP have also been excluded from Gross Gains/Losses. We consider FFO with Gains/Losses to be a meaningful supplemental measure of performance because the continued recycling of capital is a fundamental component of our business strategy, and Gross Gains/Losses from the disposition of real estate investments demonstrates the results of our investment activity. FFO with Gains/Losses is not intended to be a measure of cash flow or liquidity. See page 4 for a reconciliation of Net Earnings to FFO with Gains/Losses.

(3) FFO is calculated in accordance with the FFO definition from NAREIT’s October 1999 White Paper (as amended in April 2002), which includes gains from the sale of taxable REIT subsidiaries. We believe that GAAP Net Earnings remains the primary measure of performance and that FFO is only meaningful when it is used in conjunction with GAAP net earnings. We acknowledge that FFO is an appropriate supplemental measure when comparing our results of operations to other companies because it is a recognized measure of performance by the REIT industry and it excludes gains/losses from the sale of real estate and real estate depreciation expense, which can vary among owners of similar assets. FFO is not intended to be a measure of cash flow or liquidity. See page 4 for a reconciliation of Net Earnings to FFO.

(4) Represents total long term debt or total debt divided by the sum of shareholders’ equity, applicable debt, minority interest and accumulated depreciation, respectively.

(5) Reflects the market capitalization based on the closing share price on the last trading day of the period for publicly traded securities and liquidation value of private securities. See detailed market capitalization calculation on page 12.

(6) Represents the book value of Total Debt plus Total Equity Market Capitalization.

(7) Represents total common shares and operating partnership units outstanding at the end of the period, plus the assumed conversion of convertible preferred shares and stock options using the treasury stock method.

Page 3

(ARCHSTONE SMITH LOGO)
Third Quarter 2004

Statements of Earnings
In thousands, except per share amounts


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
*Revenues:*
Rental Revenues	$	224,497		$	198,894		$	649,193		$	586,454
Other Income		4,930			3,833			13,836			14,690

		229,427			202,727			663,029			601,144

*Expenses:*
Rental Expenses		60,864			51,072			168,699			146,897
Real Estate Taxes		20,900			17,459			63,388			52,851
Depreciation on Real Estate Investments⁽¹⁾		54,119			42,729			154,834			123,480
Gross Interest Expense		52,455			43,025			146,586			129,481
Capitalized Interest		(5,763	)		(6,225	)		(17,110	)		(17,753	)

Net Interest Expense		46,692			36,800			129,476			111,728
General and Administrative		12,898			12,558			37,423			38,200
Other Expense		2,809			2,380			6,107			28,978

		198,282			162,998			559,927			502,134

Earnings from Operations		31,145			39,729			103,102			99,010
Plus:
Income/(Loss) from Unconsolidated Entities⁽²⁾		5,485			1,714			18,115			1,008
Other Non-Operating Income ⁽³⁾		7,701			—			28,162			—
Less:
Minority Interest - Series E, F and G Perpetual Preferred Units		2,045			1,316			4,677			3,948
Minority Interest - Convertible Operating Trust Units		4,070			4,124			14,807			9,367

Net Earnings before Discontinued Operations		38,216			36,003			129,895			86,703
Plus: Net Earnings from Discontinued Operations ⁽⁴⁾		102,894			120,425			191,464			220,098

Net Earnings		141,110			156,428			321,359			306,801
Less: Preferred Share Dividends		3,661			4,812			9,935			17,789

Net Earnings Attributable to Common Shares - Basic		137,449			151,616			311,424			289,012
Add Back (dilutive securities only):
Minority Interest		150			347			242			364
Convertible Preferred Share Dividends		1,061			2,782			3,269			11,692

Net Earnings Attributable to Common Shares - Diluted	$	138,660		$	154,745		$	314,935		$	301,068

Diluted Weighted Average Common Shares Outstanding - Net Earnings		199,334			196,600			198,751			194,823

Diluted Earnings per Common Share ⁽⁵⁾	$	0.70		$	0.79		$	1.58		$	1.55

*Funds From Operations Reconciliation:*
Net Earnings Attributable to Common Shares - Diluted	$	138,660		$	154,745		$	314,935		$	301,068
Depreciation on Real Estate Investments		55,698			49,381			164,007			151,366
Depreciation on Real Estate Investments - Unconsolidated Entities		1,373			3,112			6,797			8,512
Gains from Disposition of Depreciable REIT Investments		(77,396	)		(118,893	)		(156,365	)		(212,458	)
Gains from Disposition of Unconsolidated Depreciable REIT Investments		(5,176	)		—			(7,178	)		—
Debt Extinguishment Costs Related to Dispositions		—			151			908			1,884
Minority Interest		2,954			7,927			(428	)		6,556
Other ⁽⁶⁾		(3,645	)		(4,642	)		(7,275	)		(7,197	)

Funds From Operations Attributable to Common Shares - Diluted		112,468			91,781			315,401			249,731
Gross Gains on the Disposition of Real Estate Investments ⁽⁷⁾		50,156			71,527			103,157			110,107
Provisions for Possible Loss Excluded from Gross Gains		—			—			—			3,714
Minority Interest		(5,281	)		(8,046	)		(11,205	)		(13,010	)

Funds From Operations with Gains/Losses Attributable to Common Shares - Diluted	$	157,343		$	155,262		$	407,353		$	350,542

Diluted Weighted Average Common Shares Outstanding:
Net Earnings, FFO and FFO with Gains/Losses		199,334			196,600			198,751			194,823
Per Share Amounts ⁽⁵⁾
Funds From Operations - Diluted	$	0.56		$	0.47		$	1.59		$	1.28

Funds From Operations with Gains/Losses - Diluted	$	0.79		$	0.79		$	2.05		$	1.80

Quarterly Cash Distributions per Common Share	$	0.43		$	0.4275		$	1.29		$	1.2825

See notes on following page.

Page 4

(ARCHSTONE SMITH LOGO)
Third Quarter 2004

Statements of Earnings (continued)
In thousands, except per share amounts

NOTES

(1) Includes amortization expense associated with intangible assets obtained in connection with operating community acquisitions.

(2) Includes gains from the sale of unconsolidated operating communities.

(3) Represents the gain on the sale of marketable equity securities and the gain from the sale of our property management business.

(4) In accordance with SFAS 144, amounts reflect net earnings from real estate investments designated as held for sale or sold, including net gains (losses) on any of these communities actually sold.


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
Composition of Net Earnings from Discontinued Operations:
Rental Revenues - Communities Sold	$	11,535		$	40,352		$	55,382		$	160,644
Rental Expenses - Communities Sold		(5,596	)		(15,848	)		(21,577	)		(57,652	)
Real Estate Taxes - Communities Sold		(1,094	)		(5,406	)		(6,761	)		(16,985	)

Net Operating Income - Communities Sold		4,845			19,098			27,044			86,007

Rental Revenues - Communities Held for Sale		8,749			8,334			25,518			24,806
Rental Expenses - Communities Held for Sale		(2,718	)		(2,352	)		(7,638	)		(6,649	)
Real Estate Taxes - Communities Held for Sale		(985	)		(989	)		(2,895	)		(2,916	)

Net Operating Income - Communities Held for Sale		5,046			4,993			14,985			15,241

Depreciation on Real Estate Investments		(1,579	)		(6,652	)		(9,173	)		(27,886	)
Interest, net		(6,873	)		(14,731	)		(25,042	)		(49,595	)
Income Taxes from Taxable REIT Subsidiaries		(19,068	)		(8,063	)		(18,172	)		(11,005	)
Provision for Possible Loss on Real Estate Investments		—			—			—			(3,714	)
Debt Extinguishment Costs Related to Dispositions		—			(905	)		(1,120	)		(2,796	)
Allocation of Minority Interest		(12,290	)		(15,849	)		(23,353	)		(29,872	)
Gains on Disposition of Taxable REIT Subsidiary Operating Communities, net^(a)		55,417			23,641			69,930			31,260
Archstone-Smith Gains on Disposition of REIT Real Estate Investments, net		77,396			118,893			156,365			212,458

Net Earnings from Discontinued Apartment Communities	$	102,894		$	120,425		$	191,464		$	220,098


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
(a) Gains on Disposition of Taxable REIT Subsidiary Operating Communities, net per GAAP	$	55,417		$	23,641		$	69,930		$	31,260
Ameriton Joint Venture Gains on Disposition of Operating Communities, net per GAAP		—			2,171			7,047			2,214

Total Gains, net per GAAP		55,417			25,812			76,977			33,474
Accumulated Depreciation and Income Taxes Attributable to Dispositions		(21,150	)		(13,389	)		(26,768	)		(16,416	)

FFO Impact of Gains, before minority interest		34,267			12,423			50,209			17,058
Minority Interest Attributable to Dispositions		(3,608	)		(1,445	)		(5,454	)		(2,038	)

FFO Impact of Gains, after minority interest	$	30,659		$	10,978		$	44,755		$	15,020

(5) As of September 30, 2004, the REIT (Archstone-Smith Trust) owned approximately 89.4% of the Operating Trust’s (Archstone-Smith Operating Trust) outstanding common units and the remaining 10.6% were owned by minority interest holders. Per share amounts for each period presented will always be the same for the REIT and the Operating Trust, as the economics of the minority interest holders are the same as those of the common shareholders and, therefore, both the numerator and denominator must be adjusted to reflect the assumed conversion of all outstanding Operating Trust units.

(6) Represents accumulated depreciation on taxable REIT subsidiary gains and tax impact on applicable FFO adjustments.

(7) The following is a reconciliation of GAAP Gains/Losses from the Disposition of Real Estate Investments to Gross Gains/Losses from the Disposition of Real Estate Investments (see page 3 for a definition of Gross Gains/Losses and why we believe it is a meaningful measure):


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
GAAP Gains from the Disposition of Real Estate Investments	$	77,396		$	118,893		$	156,365		$	212,458
Less: Accumulated Depreciation and Provisions for Possible Loss		(27,240	)		(47,366	)		(53,208	)		(102,351	)

Gross Gains from the Disposition of Real Estate Investments	$	50,156		$	71,527		$	103,157		$	110,107

Page 5

(ARCHSTONE SMITH LOGO)
Third Quarter 2004

Balance Sheets
In thousands


	September 30,		December 31,
Assets	2004		2003
Real Estate ⁽¹⁾	$	8,885,846	$	8,638,954
Real Estate - Held for Sale ^{(1) (2)}		428,804		360,226
Less: Accumulated Depreciation		744,898		648,982

		8,569,752		8,350,198
Investments In and Advances to Unconsolidated Entities		95,811		86,367

Net Investments		8,665,563		8,436,565
Cash and Cash Equivalents		179,642		5,230
Restricted Cash in Tax-Deferred Exchange Escrow		83,357		180,920
Other Assets		149,215		298,980

Total Assets ⁽³⁾	$	9,077,777	$	8,921,695

Liabilities and Shareholders’ Equity
Liabilities:
Unsecured Credit Facilities	$	—	$	103,790
Long Term Unsecured Debt		2,119,913		1,871,965
Mortgages Payable⁽⁴⁾		1,931,363		1,866,252
Mortgages Payable - Held for Sale^{(2) (4)}		60,810		61,373
Payables, Accrued Expenses and Other Liabilities		313,203		281,212

Total Liabilities		4,425,289		4,184,592
Minority Interest:
Series E, F and G Perpetual Preferred Units		29,091		61,180
Operating Trust Units/Other		493,817		531,236

		522,908		592,416
Shareholders’ Equity:
Series K and L Convertible Preferred Shares		25,000		50,000
Series D and I Cumulative Perpetual Preferred Shares		50,000		98,940
Common Shares, $0.01 Par Value		1,972		1,948
Additional Paid-In Capital and Other Comprehensive Income/(Loss)		3,967,957		3,966,639
Retained Earnings		84,651		27,160

Total Shareholders’ Equity		4,129,580		4,144,687
Total Liabilities and Shareholders’ Equity	$	9,077,777	$	8,921,695

NOTES

(1) The change in investments in real estate (including assets held for sale) at cost, consisted of the following:


Balance at December 31, 2003	$	8,999,180
Acquisition-Related Expenditures		1,015,512
Redevelopment Expenditures		26,680
Recurring Capital Expenditures		34,230
Development Expenditures, excluding land acquisitions		245,135
Dispositions		(990,789	)

Net Apartment Community Activity		9,329,948
Change in Other Real Estate Assets		(15,298	)

Balance at September 30, 2004	$	9,314,650

(2) Income from assets held for sale is included in Net Earnings from Discontinued Operations.

(3) Includes $600.3 million and $551.0 million of Ameriton assets as of September 30, 2004 and December 31, 2003, respectively.

(4) Includes a total of $113.1 million and $80.7 million of Ameriton third party debt as of September 30, 2004 and December 31, 2003, respectively.

Page 6

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Third Quarter 2004

Geographic Distribution at September 30, 2004 ⁽¹⁾


Core Markets
Greater Washington D.C. Metropolitan Area ⁽²⁾	39.6	%
Southern California	17.6	%
San Francisco Bay Area, California	9.2	%
Chicago, Illinois ⁽²⁾	7.7	%
Boston, Massachusetts ⁽²⁾	5.0	%
Greater New York City Metropolitan Area ⁽²⁾	4.5	%
Southeast Florida ⁽²⁾	3.2	%
Seattle, Washington	3.2	%

Total Core Markets	90.0	%

Non-Core Markets
Atlanta, Georgia	2.5	%
Denver, Colorado	1.9	%
Houston, Texas	1.3	%
Raleigh, North Carolina	1.0	%
Other ⁽³⁾	3.3	%

Total Non-Core Markets	10.0	%

Total All Markets	100.0	%

Total Garden	63.2	%

Total High-Rise	36.8	%

NOTES

(1) Based on net operating income (NOI) for the three months ended September 30, 2004, excluding amounts associated with the communities that are owned by Ameriton and any dispositions that closed during the current quarter. See footnote 2 on page 9 for a reconciliation of NOI to earnings from operations and an explanation as to why we believe NOI is a useful measure.

(2) The distribution between high-rise properties and garden communities follows (all percentages of total NOI):


	High-Rise			Garden			Total
Greater Washington D.C. Metropolitan Area		23.6	%		16.0	%		39.6	%
Chicago, Illinois		6.2	%		1.5	%		7.7	%
Boston, Massachusetts		1.9	%		3.1	%		5.0	%
Greater New York City Metropolitan Area		4.1	%		0.4	%		4.5	%
Southeast Florida		1.0	%		2.2	%		3.2	%

(3) Includes markets that represent less than 1.0% of NOI.

Page 7

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Third Quarter 2004

Operating Performance Summary⁽¹⁾
Year-Over-Year Same Store Performance


	Revenue						Operating Expense						Net Operating Income
	Growth/(Decline)						Growth/(Decline)						Growth/(Decline)⁽²⁾
	Q3 2004 vs.			YTD 2004 vs.			Q3 2004 vs.			YTD 2004 vs.			Q3 2004 vs.			YTD 2004 vs.
	Q3 2003			YTD 2003			Q3 2003			YTD 2003			Q3 2003			YTD 2003
Same Store Communities:
Garden Communities		0.3	%		(0.5	%)		4.0	%		4.8	%		(1.5	%)		(3.0	%)
High-Rise Properties		1.1	%		0.2	%		3.4	%		2.8	%		(0.2	%)		(1.2	%)
Total Portfolio		0.6	%		(0.2	%)		3.7	%		4.0	%		(1.0	%)		(2.4	%)


	Average Physical						Property Operating						Potential Effective Rent
	Occupancy⁽³⁾						Margin ⁽⁴⁾						Per Unit⁽⁵⁾
	Q3 2004			Q3 2003			Q3 2004			Q3 2003			Q3 2004		Q3 2003
Same Store Communities:
Garden Communities		95.6	%		96.0	%		65.6	%		66.8	%	$	1,079	$	1,072
High-Rise Properties		95.2	%		95.5	%		62.8	%		63.6	%	$	1,542	$	1,515
Total Portfolio		95.5	%		95.9	%		64.5	%		65.6	%	$	1,213	$	1,201


	Revenue						Operating Expense						Net Operating Income						Average Physical
	Growth/(Decline)						Growth/(Decline)						Growth/(Decline) ⁽²⁾						Occupancy
	Q3 2004 vs.			YTD 2004 vs.			Q3 2004 vs.			YTD 2004 vs.			Q3 2004 vs.			YTD 2004 vs.
	Q3 2003			YTD 2003			Q3 2003			YTD 2003			Q3 2003			YTD 2003			Q3 2004			YTD 2004
Same Store Core Markets: ⁽⁶⁾
Greater Washington D.C. Metropolitan Area		2.4	%		1.7	%		5.9	%		3.9	%		0.8	%		0.7	%		96.2	%		96.4	%
Southern California		3.0	%		3.1	%		4.0	%		3.7	%		2.6	%		2.8	%		96.5	%		96.6	%
San Francisco Bay Area, California		(2.8	%)		(4.8	%)		1.5	%		3.6	%		(4.6	%)		(8.2	%)		94.6	%		94.7	%
Chicago, Illinois		(4.0	%)		(2.8	%)		(3.2	%)		2.1	%		(4.7	%)		(7.1	%)		92.9	%		92.4	%
Boston, Massachusetts		(0.6	%)		(1.7	%)		2.9	%		5.3	%		(2.0	%)		(4.7	%)		96.6	%		97.1	%
Southeast Florida		2.8	%		2.1	%		(3.1	%)		2.8	%		8.3	%		1.5	%		95.9	%		96.2	%
Seattle, Washington		(1.3	%)		(1.4	%)		8.2	%		8.7	%		(6.1	%)		(6.3	%)		93.6	%		95.0	%

Total Core Markets		0.8	%		0.3	%		3.4	%		3.8	%		(0.4	%)		(1.4	%)		95.6	%		95.8	%

Sequential Same Store Performance


				Operating
	Revenue			Expense			NOI
	Growth/			Growth/			Growth/
	(Decline)			(Decline)			(Decline)⁽²⁾
	Q3 2004 vs.			Q3 2004 vs.			Q3 2004 vs.
	Q2 2004			Q2 2004			Q2 2004
Sequential Same Store Communities:
Garden Communities		0.4	%		1.9	%		(0.3	%)
High-Rise Properties		1.0	%		5.4	%		(1.5	%)
Total Portfolio		0.7	%		3.3	%		(0.7	%)
Sequential Same Store Core Markets: ⁽⁷⁾
Greater Washington D.C. Metropolitan Area		0.5	%		5.0	%		(1.6	%)
Southern California		0.6	%		3.2	%		(0.5	%)
San Francisco Bay Area, California		0.7	%		7.4	%		(2.2	%)
Chicago, Illinois		1.3	%		0.5	%		2.0	%
Boston, Massachusetts		0.8	%		(7.5	%)		4.8	%
Southeast Florida		(1.0	%)		1.3	%		(2.8	%)
Seattle, Washington		(0.3	%)		1.2	%		(1.2	%)

Total Core Markets		0.5	%		3.2	%		(0.8	%)

See notes on following page.

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Third Quarter 2004

Operating Performance Summary (continued)

NOTES

(1) Same Store Communities (excluding communities owned by Ameriton):

- Q3 2004 vs. Q3 2003 represents 149 apartment communities (52,047 units) that were fully operational during the entire three months ended September 30, 2004 and 2003, respectively. Excludes 26 apartment communities (9,041 units) which were not eligible for inclusion due to (i) recent acquisition or development, (ii) major redevelopment, or (iii) a significant number of non-operational units (fires, floods, etc.). Also excludes the Ameriton properties due to their short-term holding periods.

- YTD 2004 vs. YTD 2003 represents 149 apartment communities (52,047 units) that were fully operational during the entire nine months ended September 30, 2004 and 2003, respectively. Excludes 26 apartment communities (9,041 units) which were not eligible for inclusion due to (i) recent acquisition or development, (ii) major redevelopment, or (iii) a significant number of non-operational units (fires, floods, etc.). Also excludes the Ameriton properties due to their short-term holding periods.

- Q3 2004 vs Q2 2004 Sequential Same Store Communities represents 163 apartment communities (56,752 units) that were fully operational during the three months ended September 30, 2004 and June 30, 2004, respectively. Excludes 12 apartment communities (4,336 units) which were not eligible for inclusion due to (i) recent acquisition or development, (ii) major redevelopment, or (iii) a significant number of non-operational units (fires, floods, etc.). Also excludes the Ameriton properties due to their short-term holding periods.

(2) Net Operating Income (NOI) is defined as rental revenues less rental expenses and real estate taxes. We rely on NOI for purposes of making decisions about resource allocations and assessing segment performance. We also believe NOI is a valuable means of comparing period-to-period property performance. The following is a reconciliation of Same Store NOI to Earnings from Operations:


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2004			2003			2004			2003
Same Store NOI	$	124,876		$	126,137		$	373,213		$	382,232
Non-Same Store NOI, including API properties		27,748			28,317			85,922			105,722
NOI Classified as Discontinued Operations - Communities Sold		(4,845	)		(19,098	)		(27,044	)		(86,007	)
NOI Classified as Discontinued Operations - Communities Held for Sale		(5,046	)		(4,993	)		(14,985	)		(15,241	)

Net Operating Income		142,733			130,363			417,106			386,706
Other Income		4,930			3,833			13,836			14,690
Depreciation on Real Estate Investments		(54,119	)		(42,729	)		(154,834	)		(123,480	)
Interest Expense		(46,692	)		(36,800	)		(129,476	)		(111,728	)
General and Administrative Expense		(12,898	)		(12,558	)		(37,423	)		(38,200	)
Other Expense		(2,809	)		(2,380	)		(6,107	)		(28,978	)

Earnings from Operations	$	31,145		$	39,729		$	103,102		$	99,010

(3) The average physical occupancy for the entire operating portfolio, excluding the Ameriton portfolio and including non-same store communities, was 94.7% for Q3 2004.

(4) Property Operating Margin is defined as rental revenues less operating expenses, divided by rental revenues.

(5) Potential Effective Rent Per Unit is defined as the average rent per unit net of concessions and loss to lease but before vacancy loss and bad debt costs for leases in place. The Potential Effective Rent Per Unit (weighted by units) for the entire operating portfolio, excluding the Ameriton portfolio, during the Third quarter of 2004 was $1,115 for the garden communities, $1,563 for the high-rise communities and $1,241 for the total portfolio.

(6) The dollar amounts and units for the same store communities in our core markets are as follows:


	Units				Revenues				Operating Expenses				Net Operating Income
	Q3 2004		YTD 2004		Q3 2004		YTD 2004		Q3 2004		YTD 2004		Q3 2004		YTD 2004
Core Markets:
Greater Washington D.C. Metropolitan Area		18,777		18,777	$	81,406	$	241,755	$	26,934	$	78,182	$	54,472	$	163,573
Southern California		7,399		7,399		27,818		82,488		8,742		25,478		19,076		57,010
San Francisco Bay Area, California		4,753		4,753		17,848		53,209		5,716		16,682		12,132		36,527
Chicago, Illinois		4,338		4,338		18,176		53,547		8,595		26,133		9,581		27,414
Boston, Massachusetts		2,001		2,001		10,305		30,728		3,090		9,781		7,215		20,947
Southeast Florida		928		928		3,062		9,147		1,398		4,138		1,664		5,009
Seattle, Washington		2,700		2,700		6,918		20,761		2,548		7,508		4,370		13,253

Total		40,896		40,896	$	165,533	$	491,635	$	57,023	$	167,902	$	108,510	$	323,733

(7) The dollar amounts and units for the Q3 2004 sequential same store communities in our core markets are as follows:


							Net
					Operating		Operating
	Units		Revenues		Expenses		Income
Core Markets:
Greater Washington D.C. Metropolitan Area		19,551	$	84,947	$	27,936	$	57,011
Southern California		8,275		31,666		10,133		21,533
San Francisco Bay Area, California		5,203		19,670		6,362		13,308
Chicago, Illinois		4,818		20,872		9,812		11,060
Boston, Massachusetts		2,001		10,305		3,090		7,215
Southeast Florida		2,258		7,769		3,584		4,185
Seattle, Washington		2,808		7,241		2,601		4,640

Total		44,914	$	182,470	$	63,518	$	118,952

Page 9

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Third Quarter 2004

Archstone-Smith Investment Summary
Dollar amounts in thousands, except cost per unit amounts


Operating Apartment Communities	Q1 2004		Q2 2004		Q3 2004
Garden:
Communities		127		128		129
Units		43,020		43,135		43,923
Total Investment⁽¹⁾	$	4,647,845	$	4,801,564	$	4,975,592
Cost per Unit	$	108,039	$	111,315	$	113,280

High-Rise:
Communities		48		48		46
Units		20,819		20,819		17,165
Total Investment⁽¹⁾	$	3,767,308	$	3,767,698	$	3,440,672
Cost per Unit	$	180,955	$	180,974	$	200,447

Total Portfolio:
Communities		175		176		175
Units		63,839		63,954		61,088
Total Investment⁽¹⁾	$	8,415,153	$	8,569,262	$	8,416,264
Cost per Unit	$	131,818	$	133,991	$	137,773


Total Portfolio Capital Expenditures — Cost per Unit	Q1 2004			Q2 2004			Q3 2004			YTD 2004
Acquisition Related Expenditures	$	5		$	25		$	41		$	70
Redevelopment Expenditures	$	99		$	173		$	152		$	423
Recurring Capital Expenditures	$	120		$	170		$	250		$	537
Apartment Acquisitions
Communities		3			1			5			9
Units		1,191			221			2,005			3,417
Total Investment⁽¹⁾⁽²⁾	$	319,639		$	44,148		$	401,994		$	765,781
Cost per Unit	$	268,379		$	199,765		$	200,496		$	224,109
Apartment Dispositions
Communities		4			2			6			12
Units		957			664			4,871			6,492
Gross Sales Proceeds	$	133,180		$	65,050		$	591,441		$	789,671
GAAP Gains	$	49,800		$	29,169		$	77,396		$	156,365
Gross Gains⁽³⁾	$	34,480		$	18,521		$	50,156		$	103,157
Unleveraged IRR⁽⁴⁾		13.9	%		12.9	%		9.2	%		10.3	%

Ameriton Investment Summary


			As of September 30, 2004
					Gross Book		Total Expected
	Communities		Units		Basis		Investment
Operating Communities		10		3,177	$	347,843	$	354,351
Communities Under Construction and In Planning		9		3,009		182,210		400,400
Equity in Joint Ventures⁽⁵⁾		4		827		27,105		N/A

Ameriton Totals		23		7,013	$	557,158	$	754,751

NOTES

(1) For development communities, represents the total expected investment at completion. For operating communities, represents total investment plus planned capital expenditures.

(2) First quarter and year-to-date investment includes $42.5 million of anticipated redevelopment capital.

(3) See page 3 for a definition of Gross Gains/Losses from the disposition of real estate investments. See page 5 for a reconciliation of GAAP Gains/Losses from the disposition of real estate investments to Gross Gains/Losses from the disposition of real estate investments.

(4) The unleveraged IRR represents the cash rate of return generated over the investment holding period on Archstone-Smith’s invested capital.

(5) Represents Ameriton’s GAAP basis in unconsolidated joint ventures that own operating properties or properties in development.

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Third Quarter 2004

Development Summary⁽¹⁾
Dollar amounts in thousands, except unit and cost per unit amounts


	Q1 2004		Q2 2004		Q3 2004		YTD 2004
Starts During Period
Communities		—		1		2		3
Units		—		306		872		1,178
Total Investment⁽²⁾		—	$	72,045	$	210,120	$	282,165
Total Cost Per Unit		—	$	235,441	$	240,963	$	239,529
Completions During Period
Communities		1		2		—		3
Units		120		558		—		678
Total Investment⁽²⁾	$	30,528	$	152,107		—	$	182,635
Total Cost Per Unit	$	254,400	$	272,593		—	$	269,373
Stabilizations During Period⁽³⁾
Communities		1		—		2		3
Units		108		—		474		582
Total Investment⁽²⁾	$	12,780		—	$	125,084	$	137,864
Total Cost Per Unit	$	118,333		—	$	263,890	$	236,880
Under Construction at End of Period
Communities		8		7		9
Units		2,487		2,235		3,107
Total Investment⁽²⁾	$	609,088	$	533,872	$	743,992
Total Cost Per Unit	$	244,909	$	238,869	$	239,457
Investment to Date	$	310,723	$	256,188	$	360,277
In Planning at End of Period⁽⁴⁾
Communities		6		4		5
Units		1,951		1,533		1,576
Total Investment⁽²⁾	$	482,113	$	401,234	$	508,946
Total Cost Per Unit	$	247,111	$	261,731	$	322,935
Investment to Date	$	74,309	$	72,393	$	41,936
Development Expenditures During Period⁽⁵⁾	$	43,157	$	54,124	$	61,147	$	158,428

Actual or

Expected Date

Expected

Number of

Investment

Total

for First

Stabilization

Developments Under Construction

Units

at 9/30/04

Investment⁽²⁾

Start Date

Units⁽⁶⁾

Date

% Leased⁽⁷⁾

Wholly-Owned REIT Communities Under Construction

West Division (Garden)

Ventura County

Ventura

316

40,248

57,800

Q4/03

Q3/04

Q2/06

11.4

Carlsbad, California

Pacific View (Kelly Ranch)

451

66,235

77,751

Q1/03

Q1/04

Q3/05

62.8

Los Angeles, California

Warner Center

522

36,776

127,500

Q3/04

Q1/06

Q1/08

N/A

Total West Division

1,289

143,259

263,051

East Division (Garden)

Boston, Massachusetts

Archstone Watertown

134

35,808

42,479

Q4/02

Q4/04

Q3/05

N/A

Long Island, New York

Archstone Westbury

396

47,958

90,133

Q4/03

Q2/05

Q3/06

N/A

Total East Division

530

83,766

132,612

Charles E. Smith Division (High-Rise)

Washington, D.C.

Lofts 590 (Lofts at Crystal Towers)

212

26,886

41,718

Q1/03

Q4/04

Q1/06

N/A

Dupont Circle

306

44,835

72,045

Q2/04

Q2/05

Q2/06

N/A

518

71,721

113,763

Boston, Massachusetts

Park Essex

420

45,976

151,946

Q4/03

Q3/06

Q4/07

N/A

Total Charles E. Smith Division

938

117,697

265,709

Total Wholly-Owned REIT Communities Under Construction

2,757

344,722

661,372

Unconsolidated REIT Joint Venture Communities Under Construction

San Diego, California

Presidio View

350

15,555

82,620

Q3/04

Q1/06

Q4/06

N/A

Total REIT Joint Venture Communities Under Construction

350

15,555

82,620

Total Communities Under Construction

3,107

360,277

743,992

NOTES

(1) Excludes Ameriton’s development properties but includes development activity related to unconsolidated REIT Joint Ventures.

(2) For development and in planning communities, represents the total expected investment at completion. For operating communities, represents total expected investment plus planned capital expenditures.

(3) Stabilizations During Period: Completed development communities achieving approximately 93% occupancy.

(4) Q3 2004 includes 432 units which will be constructed within an unconsolidated joint venture. Investment amounts represent total joint venture development costs.

(5) Q3 2004 includes equity investments made by the REIT for unconsolidated joint venture developments.

(6) Represents the quarter that the first completed units were occupied (or are expected to be occupied).

(7) The percentage leased is based on leased units divided by total number of units in the communities (completed and under construction) as of September 30, 2004. “N/A” is shown where Lease-Up has not yet commenced. Archstone-Smith begins leasing units prior to completion of the entire community.

Page 11

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Third Quarter 2004

Capitalization Summary
In thousands, except per share amounts

Preferred Shares and Units


	Shares/Units
	Outstanding at				Annual
	September 30,		Liquidation		Dividend		Redemption
Description	2004		Preference		Per Share		Date (1)	Conversion Ratio
Convertible Preferred Shares⁽²⁾:
Series L Preferred Shares		641	$	39.00	$	3.40	November 2005	1 : 1.975
Perpetual Preferred Shares and Units⁽³⁾:
Series E Preferred Units		600	$	25.00	$	2.09	(4)	N/A
Series G Preferred Units		600	$	25.00	$	2.16	March 2005	N/A
Series I Preferred Shares		0.5	$	100,000	$	7,660	February 2028	N/A


	September 30,		December 31,
	2004		2003
Market Capitalization
Common Shares and Units:
Common Shares (public)		197,225		194,762
Convertible Operating Trust Units		23,330		25,301

Total Common Shares and Operating Partnership Units		220,555		220,063
Closing Share Price	$	31.64	$	27.98

Market Capitalization of Common Shares and Units	$	6,978,360	$	6,157,363

Convertible Preferred Shares⁽²⁾:
Series K and L Convertible Preferred Shares (private)		1,266		2,583
Closing Common Share Price (convertible into common shares)	$	31.64	$	27.98

Market Capitalization of Series K and L Preferred Shares	$	40,056	$	72,272

Perpetual Preferred Shares and Units⁽³⁾:
Series D Perpetual Preferred Shares (public)		—		1,958
Closing Share Price		—	$	25.88

Market Capitalization of Series D Perpetual Preferred Shares		—	$	50,673

Liquidation Value of Series E, F, G and I Perpetual Preferred Units and Shares (private)	$	80,000	$	113,000

Market Capitalization of Perpetual Preferred Shares and Units	$	80,000	$	163,673

Total Equity Market Capitalization	$	7,098,416	$	6,393,308

Book Value of Total Debt	$	4,112,086	$	3,903,380
Total Market Capitalization	$	11,210,502	$	10,296,688

NOTES

(1) Securities are redeemable at the option of Archstone-Smith, not the holder, beginning in the month noted.

(2) The series K Preferred Shares were converted to Common Shares in September 2004.

(3) The company redeemed the Series D Preferred Units in August 2004, the Series F Preferred Units in September 2004 and 520,000 of the Series E Preferred Units in August 2004.

(4) In accordance with the terms of the securities, the company intends to repurchase the remaining Series E Preferred Units in two tranches: 400,000 units in November 2004 and 200,000 units in February 2005.

Page 12

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Third Quarter 2004

Debt Summary
Dollar amounts in thousands


	Outstanding Balance at							Weighted Average
	September 30,		December 31,		Effective			Remaining Life to
	2004		2003		Interest Rate⁽¹⁾			Maturity
Unsecured Floating Rate Debt:
Revolving Credit Facilities	$	—	$	103,790		N/A			3.1
Tax-Exempt Debt		80,228		100,798		1.95	%		18.9

		80,228		204,588		1.95	%		18.9

Secured Floating Rate Debt:
Tax-Exempt Debt		391,467		317,351		2.02	%		19.5
Construction Loans		49,874		56,129		4.14	%		0.6
Conventional Mortgages		21,705		21,705		2.91	%		4.1

		463,046		395,185		2.29	%		16.7

Unsecured Fixed Rate Debt:
Long-Term Debt		2,039,685		1,771,167		6.40	%		5.5
Secured Fixed Rate Debt:
Conventional Mortgages		1,508,687		1,511,277		6.45	%		5.3
Other Secured Debt		20,440		21,163		5.08	%		18.8

		1,529,127		1,532,440		6.43	%		5.5

Total Debt Outstanding at end of Period	$	4,112,086	$	3,903,380		5.86	%		7.0

Debt Maturity Schedule — Long Term Debt


	Long Term Unsecured Debt				Mortgages Payable
	Regularly				Regularly									Maturities
	Scheduled		Final		Scheduled		Final				Effective			as a % of
	Principal		Maturities		Principal		Maturities				Interest			Total Market
	Amortization		and Other		Amortization		and Other		Total		Rate⁽¹⁾			Capitalization
2004	$	—	$	20,000	$	2,754	$	2,602	$	25,356		7.2	%		0.2	%
2005		31,250		220,000		11,779		60,282		323,311		7.4	%		2.9	%
2006		31,250		20,000		10,736		297,688		359,674		6.1	%		3.2	%
2007		31,250		355,000		11,336		144,953		542,539		5.4	%		4.8	%
2008		31,250		302,603		12,644		110,290		456,787		4.5	%		4.1	%
Thereafter		397,500		679,810		255,146		1,071,963		2,404,419		6.0	%		21.4	%

Total	$	522,500	$	1,597,413	$	304,395	$	1,687,778	$	4,112,086		5.9	%		36.7	%


Long-Term Floating Rate Debt (excludes revolving credit facilities) as a Percentage of Long-Term Debt at September 30, 2004		13.2	%
Total Floating Rate Debt as a Percentage of Total Debt at September 30, 2004		13.2	%
Archstone-Smith’s Pro-rata Share of Unconsolidated Debt at September 30, 2004⁽²⁾	$	254,199

Coverage Ratios⁽³⁾


	For the Nine
	Months Ended
	September 30,
	2004
Including Archstone-Smith Gains on Disposition of Real Estate Investments:
Interest Coverage Ratio⁽⁴⁾		4.53
Debt Service Ratio⁽⁵⁾		4.28
Fixed Charge Ratio⁽⁶⁾		4.14
Excluding Archstone-Smith Gains on Disposition of Real Estate Investments:
Interest Coverage Ratio⁽⁴⁾		3.52
Debt Service Ratio⁽⁵⁾		3.32
Fixed Charge Ratio⁽⁶⁾		3.21

NOTES

(1) Includes the effect of loan cost amortization, credit enhancement fees, fair value hedges and other ongoing fees and expenses, where applicable, for the quarter ended September 30, 2004.

(2) Represents Archstone-Smith’s pro-rata portion of the joint ventures’ debt based on our percentage of equity in the joint venture at September 30, 2004.

(3) Coverage ratio calculations are based on EBITDA and EBITDA without gains. We believe that EBITDA and EBITDA without gains are useful supplemental measures to be used in the calculation of our coverage ratios. These coverage ratios provide rating agencies and investors additional means of comparing our financial condition to other companies. EBITDA and EBITDA without gains do not represent net earnings or cash from operating activities that are computed in accordance with GAAP and are not indicative of cash available to fund cash needs. We define EBITDA as net earnings before interest expense, income taxes, minority interest, depreciation and amortization. EBITDA without gains excludes Archstone-Smith gains on the disposition of REIT real estate investments (includes gains from taxable REIT subsidiaries). The following is a reconciliation of net earnings to EBITDA and EBITDA without gains:


	YTD 2004
Net Earnings	$	321,359
Interest Expense, net		154,518
Income Taxes on Taxable REIT Subsidiaries		17,059
Minority Interest		42,837
Depreciation Expense		164,007

EBITDA		699,780

Less: Archstone-Smith Gains on Dispositions of REIT Real Estate Investments		(156,365	)

EBITDA Without Gains	$	543,415

(4) Calculated as EBITDA, or EBITDA without gains, divided by GAAP interest expense.

(5) Calculated as EBITDA, or EBITDA without gains, divided by the sum of GAAP interest expense and regularly scheduled principal payments (excluding balloon payments and final maturities).

(6) Calculated as EBITDA, or EBITDA without gains, divided by the sum of GAAP interest expense and preferred dividend payments.

Page 13

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Third Quarter 2004

Supplemental Information for Net Asset Value Calculation
In thousands


		Three Months
		Ended
		September 30, 2004
The following information is provided to help facilitate the calculation of Archstone-Smith’s net asset value (including Ameriton).
Income Statement Information
Net Operating Income (NOI)		$	142,733
NOI for Assets Held for Sale⁽¹⁾	5,046
NOI Stabilization Adjustment for Prestabilized Developments and Acquisitions⁽²⁾	8,652

Total Adjustments			13,698

Adjusted NOI (64,265 units)		$	156,431

Balance Sheet Information (Book Value)
Cash and Restricted Cash		$	262,999
Investments in Unconsolidated Entities⁽³⁾			137,126
Investments in Communities Under Development and In Planning Owned — Archstone-Smith⁽⁴⁾			385,768
Investments in Communities Under Development and In Planning Owned — Ameriton⁽⁴⁾			182,210
Other Land			44,758
Other Assets			149,215
Tax-Exempt Debt⁽⁵⁾	471,695
Other Debt	3,640,391
Other Liabilities	313,203

Total Liabilities			4,425,289
Minority Interest (including Series E and G Perpetual Preferred)			31,141
Perpetual Preferred Shares (Series I)			50,000
Common Shares Outstanding			197,225
Convertible Operating Trust Units Outstanding			23,330
Assumed Conversion of Series L Preferred Shares			1,266
Stock Options (treasury stock method)			1,321

Fully Converted Shares			223,142

NOTES

(1) NOI for assets held for sale as of September 30, 2004, is included in discontinued operations. Excludes $4.8 million in NOI associated with assets sold during the three months ended September 30, 2004.

(2) Represents the difference between actual NOI attributable to communities in lease-up or acquired during the three months ended September 30, 2004, and the NOI for the full quarter assuming the underwritten stabilized yield.

(3) Includes approximately $41.3 million of gains from the sale of communities to unconsolidated joint ventures, which were deferred under GAAP.

(4) The total expected investment for Archstone-Smith’s and Ameriton’s development pipeline (including communities under construction and in planning) is $1.02 billion and $400.4 million, respectively at September 30, 2004.

(5) Excludes incremental value associated with tax-exempt debt resulting from interest rates that have historically been lower than conventional debt interest rates.

Page 14


Apartment communities⁽¹⁾		240
Apartment units⁽¹⁾		83,400
Equity market capitalization	$8.2 billion
Total market capitalization	$12.3 billion
Forbes 200 Global Ranking		956
Top apartment company in Fortune’s Most Admired Companies List


ASN	69.5	%
Bloomberg Apt. Index	53.4	%
Dow Jones Utilities	26.9	%
Dow Jones Industrial	9.3	%
S&P500	6.1	%
NASDAQ	2.6	%


R. Scot Sellers	Chairman and Chief Executive Officer	23 years of Industry Experience
J. Lindsay Freeman	Chief Operating Officer	34 years of Industry Experience
Charles E. Mueller, Jr.	Chief Financial Officer	10 years of Industry Experience
Dana K. Hamilton	Executive Vice President – National Operations	10 years of Industry Experience
Caroline Brower	Secretary and General Counsel	22 years of Industry Experience
James Rosenberg	President – Charles E. Smith Residential	21 years of Industry Experience
Alfred G. Neely	Chief Development Officer	33 years of Industry Experience
Daniel E. Amedro	Chief Information Officer	30 years of Industry Experience
Jack R. Callison, Jr.	Senior Vice President – Corporate Finance	8 years of Industry Experience
Mark A. Schumacher	Controller	3 years of Industry Experience


Commodity markets (not protected)
Phoenix	90.1	%
Dallas	89.8	%
Houston	89.7	%
Denver	88.7	%
Atlanta	88.4	%


	Gross Proceeds	Estimated Taxable Gains
Closed as of 11/15/2004	$103 million	$ 36 million
Under Contract with Money Hard	496 million	191 million
Total	$599 million	$227 million


Washington DC Area	40	%
Southern California	18	%
San Francisco Bay Area	9	%
Chicago	7	%
Boston	5	%
NYC Metro Area	5	%
Seattle	3	%
Southeast Florida	3	%


Protected markets
LA County	96.4	%
San Diego	95.7	%
Washington D.C.	94.7	%
SF Bay Area	94.7	%
Boston	94.5	%

•		$6.3 billion of sales since 1996

•		13% average unleveraged internal rate of return (IRR)

•		$1.0 billion in GAAP gains

•		$841 million in gross gains¹

•		If others won’t disclose it, there must be a reason why

•		FFO is the enemy of IRR’s (for those willing to be led astray by it)

•		Approximately $600 million of anticipated non-core asset sales

•		$200 – $300 million of expected tax gains

•		Approximately $1.00 per share potential special dividend

•		No planned reduction to ongoing common share dividend


1)	There can be no assurance that Archstone-Smith will achieve any or all of such asset sales or tax gains. In addition, any dividends we make must first be declared by Archstone-Smith’s Board of Trustees.

•		$961 million of asset sales

•		$95 million contribution to FFO¹

•		25% weighted average pre-tax unleveraged IRR

1)		Includes $14 million of FFO from joint venture sales gains. See footnote 2 on page 28 of this presentation for a reconciliation of Ameriton’s contribution to Archstone-Smith’s FFO to GAAP net earnings for the period presented.

•		Multiple times, not just once

•		Purposeful, not accidental

•		Invest in research and development

•		We are reinventing our industry


San Francisco Bay Area		1-2% in 2005
Southern California		3-4% in 2005
Greater Washington DC Area		Over 5% in 2005
ASN Portfolio		3.5 – 4.0% in 2005

-		Don’t raise equity just because the window is open

-		No underwritten equity offerings since 1998¹


		Amount	Average Price		Shares
YTD 2004	$	93.5 million	$	27.65	3.4 million
1999-2003	$	598.9 million	$	21.52	27.8 million
Total	$	692.4 million	$	22.18	31.2 million


	NAV per share sensitivity analysis
Assumed capitalization rate for operating portfolio	(Only valuing development pipeline at cost)
4.75%	$	44.05
5.0%	$	41.10
5.25%	$	38.42
5.5%	$	36.00
5.75%	$	33.78


Texas	49	%
Arizona	29	%
New Mexico	9	%
Denver	8	%
San Diego	2	%
Oklahoma	2	%
Omaha	1	%


	All amounts in millions
GAAP gains on assets sold	$	1,014
Less: accumulated depreciation on assets sold	($	173	)
Gross gains on assets sold	$	841


	All amounts in millions
Ameriton contributions to GAAP net earnings:	$	111
Less: accumulated depreciation on assets sold:	($	26	)
Add: income taxes on accumulated depreciation:	$	10
Ameriton contributions to FFO:	$	95


	Amounts in millions
	Year			Year			Year			Nine months
	Ended			Ended			Ended			Ended
	12/31/2001			12/31/2002			12/31/2003			9/30/2004
Same Store NOI (2001 amount excludes NOI from Charles E. Smith assets from January 1, 2001 through October 31, 2001	$	342		$	486		$	480		$	373
Non-Same Store NOI		146			203			156			86
NOI classified as Discontinued Operations		(121	)		(141	)		(74	)		(42	)
NOI		367			548			562			417
Other income		12			9			19			14
Depreciation on real estate investments		(102	)		(167	)		(188	)		(155	)
Interest expense		(88	)		(190	)		(187	)		(130	)
General and administrative expense		(27	)		(46	)		(50	)		(37	)
Provision for possible loss on investments		(15	)		0			0			0
Other expense		(16	)		(27	)		(48	)		(6	)

GAAP Consolidated Earnings From Operations	$	131		$	127		$	108		$	103