Avalon Properties, Inc. Declares Third Quarter Dividend

WILTON, Conn., Oct. 23 /PRNewswire/ -- Avalon Properties, Inc. (NYSE: AVN) announced today that its Board of Directors declared dividends on Avalon's Common Stock (par value $.01) and the company's Series A and Series B Cumulative Redeemable Preferred Stock. All dividends are payable on Nov. 15 to all stockholders (both common and preferred) of record as of Nov. 4, 1996. The Common Stock dividend for the third quarter of 1996 is 38 cents per share. This represents an increase of one cent per share from the prior quarter, or a 2.7% increase. The Series A Cumulative Redeemable Preferred Stock dividend is 56.25 cents per share. An initial and partial dividend of 14.31 cents per share on the Company's Series B Cumulative Redeemable Preferred Stock for the short period beginning Oct. 22, 1996 (settlement date) through Nov. 14, 1996 will be payable on Nov. 15, 1996 to all shareholders of record as of Nov. 4, 1996.

Avalon, named the NAHB Property Management Company of the Year for 1996, owns or holds an ownership interest in 45 stabilized apartment communities containing 13,334 apartment homes in six states and the District of Columbia. Eight communities with 2,854 apartments homes are presently under construction. Avalon Properties, Inc. is an equity REIT in the business of developing, acquiring and managing multifamily apartment communities in the Mid-Atlantic and Northeast regions of the United States. More information on Avalon Properties may be found on Avalon's Web site at http://www.avalonprop.com.

Detailed press releases for Avalon Properties and quarterly information, including its Form 10-K, are available at no charge through PR Newswire's Company News On-Call/Quarterlies On-Call fax service and on PRN's Web site. For a menu of Avalon's press releases, or to retrieve a specific release, please call 800-758-5804, ext. 061544, or http://www.prnewswire.com on the Internet or on Avalon's Web site.

SOURCE Avalon Properties, Inc.

     -0-                             10/23/96 

/CONTACT: Richard L. Michaux, Chairman, 703-329-3581, or Thomas J. Sargeant, Chief Financial Officer, 703-329-3583, both of Avalon Properties/

(AVN)

CO: Avalon Properties, Inc. ST: Connecticut IN: FIN SU: DIV

JA -- DCW052 -- 4733 10/23/96 18:21 EDT http://www.prnewswire.com