Archstone-Smith Announces Expected Gain From Investment in Rent.com; Provides Incremental 2005 Same-store Guidance

Archstone-Smith Announces Expected Gain From Investment in Rent.com; Provides Incremental 2005 Same-store Guidance

DENVER, Dec. 22 /PRNewswire-FirstCall/ -- Archstone-Smith (NYSE:ASN) today announced that it expects to realize a gain from its investment in Rent.com, a leading Internet listing web site that serves the apartment and rental housing industry. On December 17, 2004, eBay announced that it had agreed to acquire the privately held Rent.com for approximately $415 million plus Rent.com's year end cash balance, less transaction expenses, payable in $30 million in cash and the remainder in eBay common stock. The acquisition, which is subject to various regulatory approvals and approval of Rent.com's shareholders, is expected to close in the first quarter of 2005.

If the closing occurs with no material change in the price of eBay's stock, Archstone-Smith would receive approximately $25 million of eBay common stock. If Archstone-Smith were to sell its eBay shares following the closing, again assuming no material change in the price, the company would record a gain in its earnings and funds from operations of approximately $0.11 per share. There can be no assurance that the Rent.com transaction will close, nor can there be any assurance of the price at which the shares of eBay's common stock will trade in the future, nor the price at which Archstone-Smith will be able to sell its shares of eBay's common stock.

Archstone-Smith Provides Incremental 2005 Same-store Guidance

Archstone-Smith reiterated its previously provided 2005 same-store revenue growth guidance of 3.5% - 4.0%. The company also estimates 2005 same-store expense growth estimate of 3.0% - 4.0% and a net operating income growth estimate of 3.3% - 4.3%. These estimates involve risks and uncertainties that could cause actual results to differ from those estimated. For a description of these risks and uncertainties, refer to the text at the end of this press release.

Archstone-Smith will provide full-year 2005 guidance on its fourth quarter/year-end 2004 conference call with senior management scheduled for 11 a.m. EDT on Tuesday, February 1, 2005.

Archstone-Smith (NYSE:ASN) is a recognized leader in apartment investment and operations. With a current total market capitalization of $12.6 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 service guarantees. As of November 30, 2004, Archstone-Smith owned or had an ownership position in 238 communities, representing 82,671 units, including units under construction.

Archstone-Smith, an S&P 500 company, 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 Company of the Year 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 contains forward-looking statements and information under the federal securities law. These statements are based on current expectations, estimates and projections, the industry and markets in which Archstone-Smith operates, and 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. 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.

(Logo: http://www.newscom.com/cgi-bin/prnh/19990907/ASNLOGO)

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/19990907/ASNLOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com
Source: Archstone-Smith

CONTACT: Jack R. Callison, Jr. of Archstone-Smith, +1-800-982-9293, or
+1-303-708-5959

Web site: http://www.archstonesmith.com/
http://www.rent.com/


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