Archstone-Smith Announces Results for the
Second Quarter of 2006
Company Raises 2006 Guidance; Same-Store Operating Momentum Continues

DENVER — July 25, 2006 — Archstone-Smith (NYSE:ASN) today announced net earnings per share (EPS) of $0.77 for the quarter ended June 30, 2006, compared with the $0.27 per share reported for the same period in 2005. Funds from operations (FFO) with gains/losses was $0.80 per share in the second quarter of 2006, compared with $0.49 per share for the second quarter of 2005. FFO for the second quarter of 2006 was $0.59 per share, compared with $0.46 for the same period in 2005.

Archstone-Smith also announced that it is raising its 2006 guidance. The company is increasing its EPS guidance to $2.75 to $3.05 per share; its FFO guidance is increasing to $2.20 to $2.26 per share.

Same-Store Operating Performance Continues Positive Momentum
Same-store revenues increased 6.6% in the second quarter of 2006, representing the ninth consecutive quarter of increasing revenue growth. Same-store expenses decreased 0.7%, driven by lower utility expenses as a result of higher resident reimbursements and positive adjustments to insurance accruals. The company's same-store net operating income (NOI) grew 10.2% in the second quarter – the highest rate of growth since it began reporting quarterly results more than 10 years ago. This growth was driven principally by strong NOI growth in Southern California and the New York City metropolitan area – which represent more than 35% of the company's portfolio – with same-store NOI increases of 11.7% and 18.0% respectively. "Our performance continues to validate our commitment to investing in our core markets, which are characterized by very limited land upon which to build new housing, expensive single-family home prices and strong job growth," said R. Scot Sellers, chairman and chief executive officer. "Due to the tremendous efforts of our acquisition and development professionals, I am pleased to announce that approximately 96% of our assets are now located in many of the most prestigious neighborhoods in these markets."

Acquisitions and Dispositions Drive Core Market Success
Year-to-date, the company has acquired $968.7 million of apartment communities, representing 2,341 units, in markets that include New York City and California. Archstone-Smith has also completed the sale of $688.1 million of apartment communities year-to-date in markets that include Atlanta, Chicago, Dallas, Denver, Houston, Phoenix, Portland and Southeast Florida. The company remains committed to disposing of virtually all of its non-core assets by the end of 2006. The company's year-to-date dispositions produced cash gains of $130.1 million – a profit of approximately 24.1% on the company's cost basis – and an unleveraged IRR of 13.0%.

Significant Value Creation from $4.0 Billion Development Pipeline
At the end of the quarter, including joint ventures and Ameriton, the company had 4,684 units with an expected investment of $1.5 billion, under construction, and 9,879 units, representing an expected investment of $2.5 billion, in planning. The development pipeline is concentrated in core markets that include Manhattan, downtown Boston, Southern California and Washington, D.C. "We are very excited about two recently completed developments, The Flats at Dupont Circle in Washington, D.C., and Archstone Westbury on Long Island, that will further strengthen our portfolios in those important markets," said J. Lindsay Freeman, chief operating officer.

Ameriton Continues to Deliver Strong Results
Archstone-Smith's second quarter 2006 results include gains from the sale of operating communities by Ameriton, the company's wholly owned subsidiary, which contributed $20.6 million, or $0.08 per share, to second quarter 2006 EPS, and $14.5 million, or $0.06 per share, to its second quarter FFO. Since 2000 through the second quarter of 2006, Ameriton has completed the sale of $1.8 billion of apartment communities, generating a pre-tax unleveraged IRR of 22.8%, excluding joint ventures.

Archstone-Smith's second quarter 2006 results included the following items on the company's Statement of Earnings: (i) a $4.2 million aggregate benefit included in Other Income, related to lower than projected hurricane losses and the corresponding insurance recoveries, and reimbursements related to moisture infiltration and mold litigation at previously owned communities in Southeast Florida; (ii) a $3.6 million incentive payment included in Income from Unconsolidated Entities, earned in connection with the final liquidation of a joint venture asset developed in Southeast Florida; and (iii) a $2.1 million impairment charge included in Other Expense, related to a non-core asset that was sold in the second quarter of 2006.

Archstone-Smith Receives Approval to Acquire DeWAG
As previously announced, the company has the $649 million (€518 million) acquisition of Deutsche WohnAnlage GmbH (DeWAG) under contract. Archstone-Smith has since received the necessary merger clearance from German authorities, which will allow the company to close the transaction within the coming days. The transaction consists of more than 6,100 residential units in some of Germany's most desirable metropolitan areas, including Rhine-Main (Frankfurt/Wiesbaden), Düsseldorf, Munich, Stuttgart and Hamburg. A presentation with additional details has been included as part of the company's Second Quarter 2006 Earnings Release and Supplemental Financial Information which is available on its website, www.archstonesmith.com.

Archstone-Smith Declares 124th Consecutive Common Share Dividend
The company also announced that its Board declared the company's 124th consecutive quarterly common share dividend. The company will pay a dividend of $0.435 per common share, payable on August 31, 2006 to shareholders of record as of August 16, 2006. On an annualized basis, this represents a dividend of $1.74 per common share.

Archstone-Smith (NYSE: ASN), an S&P 500 company, is a recognized leader in apartment investment and operations. With a current total market capitalization of $18.8 billion, the company's portfolio is concentrated in many of the most desirable neighborhoods in the Washington, D.C. metropolitan area, Southern California, the San Francisco Bay Area, the New York City metropolitan area, Boston, Southeast Florida, Chicago, and Seattle. The company continually upgrades the quality of its portfolio through the selective sale of assets, using proceeds to fund investments in assets 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 June 30, 2006, the company owned or had an ownership position in 267 communities, representing 82,491 units, including units under construction.

For full financials, click here.

Archstone-Smith's full second quarter 2006 financials and archived press releases are available on its web site at www.ArchstoneSmith.com or may be obtained 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 2005 Annual Report on Form 10-K for factors which could affect Archstone-Smith's future financial performance.