Gables Third Quarter Earnings Meet Consensus Estimates

Gables Third Quarter Earnings Meet Consensus Estimates 


BOCA RATON, Fla., Nov. 4  /PRNewswire-FirstCall/ -- Gables Residential  (the
"Company"), today reported earnings for the third quarter that met consensus
estimates. Net income available to common shareholders was $0.56 per diluted
share and funds from operations ("FFO") available to common shareholders was
$0.60 per diluted share.

Net income available to common shareholders for the quarter was $14.6 million,
or $0.56 per diluted share, compared to $3.6 million, or $0.15 per diluted
share, for the comparable period of 2002.  The third quarter 2003 results
included gains from asset sales of $12.4 million, or $0.39 per diluted share,
compared to $1.1 million, or $0.04 per diluted share, for the third quarter
2002.  In addition, the third quarter 2002 results included a charge of $4.0
million, or $0.13 per diluted share, that was recorded in connection with the
Company's redemption of its 8.3% Series A Preferred Shares in August 2002.  This
charge is discussed in more detail on page 5.

For the first nine months of 2003, net income available to common shareholders
was $28.2 million, or $1.12 per diluted share, compared to $34.2 million, or
$1.38 per diluted share, for the comparable period of 2002.  The year to date
2003 results included gains from asset sales of $17.4 million, or $0.56 per
diluted share, compared to $24.8 million, or $0.80 per diluted share, for the
comparable period in 2002.  In addition, the nine months ended September 30,
2002 results included (i) the third quarter 2002 charge of $4.0 million, or
$0.13 per diluted share, related to the redemption of the 8.3% Series A
Preferred Shares and (ii) the second quarter 2002 unusual items charge of $1.7
million, or $0.05 per diluted share, that was recorded in connection with an
early extinguishment of debt in May 2002. This charge is discussed in more
detail on page 4.

FFO available to common shareholders for the quarter was $19.0 million, or $0.60
per diluted share, compared to $14.7 million, or $0.48 per diluted share, for
the comparable period of 2002.  FFO available to common shareholders for the
first nine months of 2003 was $57.3 million, or $1.86 per diluted share,
compared to $55.9 million, or $1.81 per diluted share, for the comparable period
of 2002.  The FFO metric excludes gain on sale of previously depreciated
operating real estate assets and real estate asset depreciation and
amortization.  A reconciliation of net income to FFO is included on page 13.

This earnings release is available on Gables Residential's website at
http://www.gables.com/ . Please click on "Investor Relations/Financial
Information/Earnings Releases" or go directly to this web address:
http://www.gables.com/q303earningsrelease .

The Company produces Earnings Release Supplements ("the Supplements") that
provide detailed information regarding the financial position and operating
results of the Company.  These Supplements are available via the Company's
website and through e-mail distribution. Access to the Supplements through the
Company's website is available at http://www.gables.com/financialreports .  If
you would like to receive future press releases via e-mail, please register
through the Company's website at http://www.gables.com/mailalerts . Some items
referenced in the earnings release may require the Adobe Acrobat 6.0 Reader. If
you do not have Adobe Acrobat 6.0 Reader, you may download it at the following
website: http://www.adobe.com/products/acrobat/readstep2.html .

The Company will host a conference call on Wednesday, November 5, 2003 at 11:00
a.m. Eastern Time.  Gables executives will discuss third-quarter earnings,
current activity and the local multifamily markets.  The conference call will be
open to the public and will also be broadcast live on the Internet via Gables
Residential's website at http://www.gables.com/ .  Please click on "Investor
Relations/Calendar of Events/Conference Calls" or go directly to this web
address: http://www.gables.com/conferencecalls .  Those listening by phone
should call in 5-10 minutes before conference time to [phone] and use the
passcode 11481803.  International callers or those in the 617 area code should
call [phone].

A playback of the conference call will be available from 3:00 p.m. Eastern Time
on Wednesday, November 5, 2003 until midnight on Friday, November 14, 2003. 
US/Canada participants should call [phone].  International callers or
those in the 617 area code should call [phone].  The Gables playback code
is 11481803.  The playback can also be accessed for 12 months following the
conference call via Gables Residential's website at
http://www.gables.com/webcasts .

Operating Results for the Third Quarter 2003 Compared to the Third Quarter 2002

The Company's markets and portfolio continue to feel the residual impact of the
national economy's job-growth contraction and related decline in renter demand. 
On a same-store basis, total revenues declined 2.4% and property operating and
maintenance expenses declined 1.3%, resulting in a 3.0% reduction in property
net operating income ("NOI").   A detail of the same-store results by market is
presented on page 14.  Expense comparisons in certain markets are skewed as a
result of the recordation of property tax true-up adjustments and appeal
settlements in the third quarter of 2003.  A ratable recordation of property
taxes throughout both 2002 and 2003 would result in a decline in expenses and
NOI of 0.3% and 4.3%, respectively, from the third quarter 2002 to the third
quarter 2003.

Investment and Disposition Activity

During the quarter, the Company acquired Gables Woodley Park, 211 apartment
homes in the Northwest Washington, D.C. EPN(TM), for $53 million and completed
construction of two assets in the Uptown Dallas EPN(TM): Gables Ellis Street,
245 apartment homes; and Gables State Thomas Ravello, 290 apartment homes.  The
Company also sold both phases of Gables Meyer Park, 641 apartment homes in a
non-EPN(TM) location in Houston, for $52 million, resulting in a gain of $12.4
million.

Year to date, the Company has acquired 784 apartment homes, completed the
lease-up of 989 apartment homes, sold 941 apartment homes, and commenced
development on 1,247 apartment homes which are expected to deliver stabilized
earnings in late 2004 and in 2005.  "Our research indicates that the national
economy is in the early phase of a slow recovery.  Our plans to deliver new
assets in late 2004 and 2005 should allow us to capitalize on projected
improving fundamentals," said Mr. Chris Wheeler, CEO.

Equity Capital Transactions

The Company closed an offering of 2.5 million common shares on August 26, 2003,
with net proceeds of approximately $79 million. Proceeds of the offering were
used to pay down borrowings under the Company's unsecured lines of credit that
are being utilized for the acquisition and development activities discussed
above and for general corporate purposes.

On October 17, 2003, the Company issued a notice of redemption for its 2.0
million outstanding 8.625% Series B Preferred Units at $25.00 per unit plus
accrued and unpaid distributions.  The $50 million of Series B Preferred Units
will be redeemed on November 17, 2003.  In connection with the issuance of the
Series B Preferred Units in November 1998, the Company incurred $1.3 million in
issuance costs and recorded such costs as a reduction of shareholders' equity. 
The redemption price of the Series B Preferred Units exceeds the related
carrying value by the $1.3 million of issuance costs.  Upon redemption in the
fourth quarter of 2003, the Company will reflect the $1.3 million excess as a
reduction of earnings in arriving at both net income available to common
shareholders and funds from operations available to common shareholders.  This
accounting treatment is in accordance with a clarification by the SEC staff in
July 2003 of EITF Abstracts, Topic No. D-42,  "The Effect on the Calculation of
Earnings per Share for the Redemption or Induced Conversion of Preferred
Stock."

Unusual Items

In May 2002, the Company expensed approximately $1.7 million of early debt
extinguishment costs.  Under accounting rules in effect at that time, these
costs were classified as an extraordinary item and, as such, did not reduce FFO.
 In April 2002, SFAS No. 145 was issued.  The Company adopted this standard on
its January 1, 2003 effective date and pursuant to the new rules, reclassified
the $1.7 million of early debt extinguishment costs from extraordinary items to
unusual items.  In the computation of FFO pursuant to the NAREIT definition
outlined on page 7, net income is adjusted for extraordinary items but is not
adjusted for unusual items.  As such, previously reported FFO for the nine
months ended September 30, 2002 has been reduced by $1.7 million.  The adoption
of this standard had no impact on previously reported net income.

Original Issuance Costs Associated with the Redemption of Series A Preferred
Shares

In August 2002, the Company redeemed its 4.6 million outstanding 8.3% Series A
Cumulative Redeemable Preferred Shares for $115 million plus accrued and unpaid
dividends.  In connection with the issuance of the Series A Preferred Shares in
July 1997, the Company incurred $4.0 million in issuance costs and recorded such
costs as a reduction of shareholders' equity.  The redemption price of the
Series A Preferred Shares exceeded the related carrying value by the $4.0
million of issuance costs.  The July 2003 clarification of Topic No. D-42
discussed above became effective for the third quarter 2003 and is required to
be reflected retroactively in the financial statements of prior periods.  As a
result, the Company has reduced its previously reported net income available to
common shareholders and funds from operations available to common shareholders
for the three and nine months ended September 30, 2002 by the $4.0 million
excess.

Earnings Guidance

The Company's guidance for the fourth quarter of 2003 and the full year 2003 for
net income and FFO available to common shareholders on a diluted per share basis
is disclosed and reconciled below:

  Fourth Quarter 2003:                                     Range
                                                    Low-End      High-End
  Expected net income available to common
   shareholders                                       $0.10         $0.74
  Add: Expected real estate asset depreciation
   and amortization                                    0.42          0.42
  Less: Expected gain on sale of previously
   depreciated operating real estate assets            0.00         -0.62
  Expected FFO available to common shareholders       $0.52         $0.54
  Charge associated with redemption of Series B
   Preferred Units                                     0.04          0.04
  Expected FFO available to common shareholders
   after supplemental adjustment for Series B
   Preferred Unit redemption charge                   $0.56         $0.58

  Same-Store Operating Assumptions to the
   Company's Guidance (A):
  Total property revenues                            -2.75%        -2.00%
  Property operating and maintenance expenses (B)     4.75%         3.75%
  Property net operating income (NOI) (B)            -6.75%        -5.00%

  (A) Represents the projected change from the fourth quarter 2002 to the
  fourth quarter 2003.

  (B) A ratable recordation of property taxes throughout both 2002 and 2003
  would result in a mid-point of the range of the projected change from the
  fourth quarter 2002 to the fourth quarter 2003 for expenses and NOI of
  2.8% and -5.3%, respectively.


  Full Year 2003:                                          Range
                                                   Low-End       High-End
  Expected net income available to common
   shareholders                                      $1.22          $1.86
  Add: Expected real estate asset depreciation
   and amortization                                   1.72           1.72
  Less: Expected gain on sale of previously
   depreciated operating real estate assets          -0.56          -1.18
  Expected FFO available to common shareholders      $2.38          $2.40
  Charge associated with redemption of Series B
   Preferred Units                                    0.04           0.04
  Expected FFO available to common shareholders
   after supplemental adjustment for Series B
   Preferred Unit redemption charge                  $2.42          $2.44

  Same-Store Operating Assumptions to the
   Company's Guidance (C):
  Total property revenues                           -2.10%         -1.90%
  Property operating and maintenance expenses        1.50%          1.25%
  Property net operating income (NOI)               -4.00%         -3.50%

  (C) Represents the projected change from 2002 to 2003.


  Discontinued Operations


The Company adopted SFAS No. 144, "Accounting for the Impairment or Disposal of
Long-Lived Assets," effective January 1, 2002.  This standard requires, among
other things, that operating results of real estate assets sold subsequent to
January 1, 2002, that the Company has no continuing involvement with, be
reflected as discontinued operations in the statements of operations for all
periods presented.  The Company evaluates, in the ordinary course of its
business, the continued ownership of its assets relative to available
opportunities to acquire and develop new assets and relative to available equity
and debt capital financing.  The Company sells assets if it determines that such
sales are the most attractive sources of capital for redeployment in its
business, for repayment of debt, for repurchases of stock, and for other uses. 
The Company expects to reclassify historical operating results whenever
necessary in order to comply with the requirements of SFAS No. 144.

Non-GAAP Financial Measures and Other Terms

This release, including the Supplements, contains certain non-GAAP financial
measures and other terms.  The Company's definition and calculation of these
non-GAAP financial measures and other terms may differ from the definitions and
methodologies used by other REITs and, accordingly, may not be comparable.  The
non-GAAP financial measures referred to below should not be considered as
alternatives to net income or other GAAP measures as indicators of our
performance.  Additional information regarding these items and other non-GAAP
financial measures and terms used in this release, including the Supplements,
can be found elsewhere herein.

Funds from Operations (FFO) is used by industry analysts and investors as a
supplemental operating performance measure of an equity real estate investment
trust ("REIT").  The Company calculates FFO in accordance with the definition
that was adopted by the Board of Governors of the National Association of Real
Estate Investment Trusts ("NAREIT").  FFO, as defined by NAREIT, represents net
income (loss) determined in accordance with generally accepted accounting
principles ("GAAP"), excluding extraordinary items as defined under GAAP and
gains or losses from sales of previously depreciated operating real estate
assets, plus certain non-cash items, such as real estate asset depreciation and
amortization, and after adjustments for unconsolidated partnerships and joint
ventures.

Historical cost accounting for real estate assets in accordance with GAAP
implicitly assumes that the value of real estate assets diminishes predictably
over time.  Since real estate values instead have historically risen or fallen
with market conditions, many industry investors and analysts have considered
presentation of operating results for real estate companies that use historical
cost accounting to be insufficient by themselves.  Thus, NAREIT created FFO as a
supplemental measure of REIT operating performance that excludes historical cost
depreciation, among other items, from GAAP net income.  The use of FFO, combined
with the required primary GAAP presentations, has improved the understanding of
operating results of REITs among the investing public and made comparisons of
REIT operating results more meaningful.  Management generally considers FFO to
be a useful measure for reviewing the comparative operating and financial
performance of the Company (although it should be reviewed in conjunction with
net income which remains the primary measure of performance) because by
excluding gains or losses related to sales of previously depreciated operating
real estate assets and excluding real estate asset depreciation and
amortization, FFO can help users compare the operating performance of a
company's real estate between periods or as compared to different companies.

Adjusted Funds From Operations (AFFO) represents FFO less recurring value
retention capital expenditures.  Because FFO excludes real estate asset
depreciation and amortization, AFFO represents a useful supplemental operating
performance measure because it takes into consideration recurring value
retention capital expenditures.

Recurring Value Retention Capital Expenditures represent costs typically
incurred every year during the life of a community, such as expenditures for
carpet, vinyl flooring, appliances, mechanical equipment and fixtures.  To the
extent such costs are incurred in connection with a major renovation of a
community they are excluded from this item.

Non-recurring Capital Expenditures represent costs that are generally incurred
in connection with a major project impacting an entire community, such as roof
replacement, parking lot resurfacing, exterior painting and siding replacement. 
These costs are not incurred on a regular basis and may not occur or reoccur
during the anticipated hold period of an asset.  To the extent such costs are
incurred in connection with a major renovation of a community they are excluded
from this item.

Value Enhancing Capital Expenditures represent costs for which an incremental
value is expected to be achieved from increasing the NOI potential for a
community or recharacterizing the quality of the income stream with an
anticipated reduction in potential sales cap rate for items such as replacement
of wood siding with a masonry-based Hardi-Board product, amenity upgrades and
additions, installation of security gates and additions of covered parking.  To
the extent such costs are incurred in connection with a major renovation of a
community they are excluded from this item.

Property Net Operating Income (NOI) is used by industry analysts, investors and
Company management to measure operating performance of the Company's properties.
 NOI represents total property revenues less property operating and maintenance
expenses (as reflected in the accompanying statements of operations). 
Accordingly, NOI excludes certain expenses included in the determination of net
income such as property management and other indirect operating expenses,
interest expense and depreciation and amortization expense.  These items are
excluded from NOI in order to provide results that are more closely related to a
property's results of operations. Certain items, such as interest expense, while
included in FFO and net income, do not affect the operating performance of a
real estate asset and are often incurred at the corporate level as opposed to
the property level.  As a result, management uses only those income and expense
items that are incurred at the property level to evaluate a property's
performance.  Real estate asset depreciation and amortization is excluded from
NOI for the same reasons that it is excluded from FFO pursuant to NAREIT's
definition.

Stabilized Occupancy is defined as the earlier to occur of (i) 93% physical
occupancy or (ii) one year after completion of construction.  For purposes of
evaluating comparative operating performance, the Company categorizes its
operating communities based on the period each community reaches stabilized
occupancy.  For purposes of the period-end community charts, once a community
has reached a stabilized occupancy level it is reclassified from the
Development/Lease-up Communities chart to the Stabilized Communities chart.

Physical Occupancy represents gross potential rent less physical vacancy loss as
a percentage of gross potential rent.

Economic Occupancy represents actual rent revenue collected divided by gross
potential rent.  Thus, economic occupancy differs from physical occupancy in
that it takes into account concessions, non-revenue producing apartment homes
and delinquencies.

Gross Potential Rent is determined by valuing occupied apartment homes at
contract rates and vacant units at market rates.

Income Available for Debt Service and Preferred Dividends represents net income
available to common shareholders before interest expense and credit enhancement
fees, preferred dividends, original issuance costs associated with redemption of
preferred shares, income taxes, depreciation, amortization, minority interest,
gain on sale of real estate assets, long-term compensation expense,
extraordinary items and unusual items, all from both continuing and discontinued
operations, as applicable.  Management generally considers income available for
debt service and preferred dividends to be an appropriate supplemental measure
to net income of the operating performance of the Company because it helps
investors to understand the ability of the Company to incur and service its debt
and preferred stock obligations.

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995: This release, including the supplements, contains forward-looking
statements within the meaning of federal securities laws.  These forward-looking
statements reflect the Company's current views with respect to the future events
or financial performance discussed in this release, based on management's
beliefs and assumptions and information currently available. When used, the
words "believe", "anticipate", "estimate", "project", "should", "expect",
"plan", "assume" and similar expressions that do not relate solely to historical
matters identify forward-looking statements.  Forward-looking statements in this
release include, without limitation, statements relating to the Company's
ability to produce total returns through monthly dividends and share price
changes that exceed the NAREIT apartment sector index and the Company's ability
to achieve its expectations for fourth quarter 2003 and full year 2003 earnings.
 Forward-looking statements are subject to risks, uncertainties and assumptions
and are not guarantees of future events or performance, which may be affected by
known and unknown risks, trends and uncertainties.  Should one or more of these
risks or uncertainties materialize, or should our assumptions prove incorrect,
actual results may vary materially from those anticipated, projected or implied.
 Factors that may cause such a variance include, among others:  local and
national economic and market conditions, including changes in occupancy rates,
rental rates, and job growth; the demand for apartment homes in the Company's
current and proposed markets; the uncertainties associated with the Company's
current real estate development, including actual costs exceeding the Company's
budgets; changes in construction costs; construction delays due to the
unavailability of materials or weather conditions; the failure to sell
communities on favorable terms, in a timely manner or at all; the failure of
acquisitions to yield anticipated results; the cost and availability of
financing; changes in interest rates; competition; the effects of the Company's
accounting and other policies; and additional factors discussed from time to
time in the Company's filings with the Securities and Exchange Commission.  The
Company expressly disclaims any responsibility to update forward-looking
statements.

About Gables

With a mission of Taking Care of the Way People Live(R), Gables Residential has
received national recognition for excellence in the management, development,
acquisition and construction of luxury multifamily communities in high job
growth markets. The Company's strategic objective is to produce total returns
through monthly dividends and share price changes that exceed the NAREIT
apartment sector index.

The Company has a research-driven strategy focused on markets characterized by
high job growth and resiliency to national economic downturns. Within these
markets, the Company targets Established Premium Neighborhoods(TM) ("EPN's"),
generally defined as areas with high per square foot prices for single-family
homes. By investing in resilient, demand-driven markets and EPN(TM) locations
with barriers to entry, the Company expects to achieve its strategic objective.

The Company is one of the largest apartment operators in the nation and
currently manages 50,988 apartment homes in 180 communities, owns 84 communities
with 23,338 stabilized apartment homes primarily in Atlanta, Houston, South
Florida, Austin, Dallas, Tampa and Washington, DC and has an additional 9
communities with 2,388 apartment homes under development or lease-up. For
further information, please contact Gables Investor Relations at [phone]
or access Gables Residential's website at http://www.gables.com/ .

  GABLES RESIDENTIAL
  Consolidated Statements of Operations
  September 30, 2003
  (Unaudited and amounts in thousands, except for per share data)

                                      Three months ended  Nine months ended
                                        September 30,       September 30,
                                        2003     2002      2003      2002
  Revenues:
     Rental revenues                   $54,151  $50,400  $158,337  $151,673
     Other property revenues             3,234    3,034     9,194     8,888
        Total property revenues         57,385   53,434   167,531   160,561

    Property management revenues         2,345    1,780     6,145     5,452
    Ancillary services revenues          2,139    1,931     5,465     6,586
    Interest income                          3      155       164       336
    Other revenues                         424      576       544       661
        Total other revenues             4,911    4,442    12,318    13,035

        Total revenues                  62,296   57,876   179,849   173,596

  Expenses:
     Property operating and
      maintenance (exclusive of items
      shown below)                      21,356   20,064    60,121    56,917
     Real estate asset depreciation
      and amortization                  13,123   10,142    38,084    33,209
     Property management  - owned        1,500    1,328     4,857     4,774
     Property management  - third
      party                              2,268    1,560     6,041     4,856
     Ancillary services                    992    1,181     3,302     3,960
     Interest expense and credit
      enhancement fees                  11,499   11,760    33,897    31,645
     Amortization of deferred
      financing costs                      494      426     1,400       958
     General and administrative          2,052    2,052     6,657     5,727
     Corporate asset depreciation and
      amortization                         576      405     1,400     1,286
     Unusual items                           -        -         -     1,687
        Total expenses                  53,860   48,918   155,759   145,019

  Income from continuing operations
   before equity in income of joint
   ventures, gain on sale and minority
   interest                              8,436    8,958    24,090    28,577

  Equity in income of joint ventures        55      931       250     2,859
  Gain on sale of previously
   depreciated operating real estate
   assets                                    -        -         -    17,906
  Gain on sale of land and development
   rights                                    -      267         -     2,068
  Minority interest of common
   unitholders in Operating
   Partnership                            (902)    (772)   (3,029)   (7,464)
  Minority interest of preferred
   unitholders in Operating
   Partnership                          (1,078)  (1,078)   (3,234)   (3,234)

  Income from continuing operations      6,511    8,306    18,077    40,712

  Operating income from discontinued
   operations, net of minority
   interest                                 67      396       575     1,725
  Gain on disposition of discontinued
   operations, net of minority
   interest                             10,174        -    14,249     1,763
  Income from discontinued operations,
   net of minority interest             10,241      396    14,824     3,488

  Net income                            16,752    8,702    32,901    44,200

  Dividends to preferred shareholders   (2,194)  (1,091)   (4,710)   (5,976)
  Original issuance costs associated
   with redemption of preferred shares       -   (4,009)        -    (4,009)

  Net income available to common
   shareholders                        $14,558   $3,602   $28,191   $34,215


  Weighted average number of common
   shares outstanding - basic           26,031   24,764    25,075    24,696
  Weighted average number of common
   shares outstanding - diluted         31,664   30,812    30,845    30,805

  Per Common Share Information-Basic:
  Income from continuing operations
   (net of preferred dividends and
   original issuance costs associated with
   redemption of preferred shares)       $0.17    $0.13     $0.53     $1.24
  Income from discontinued operations,
   net of minority interest              $0.39    $0.02     $0.59     $0.14
  Net income available to common
   shareholders                          $0.56    $0.15     $1.12     $1.39

  Per Common Share Information-Diluted:
  Income from continuing operations
   (net of preferred dividends and
   original issuance costs associated with
   redemption of preferred shares)       $0.16    $0.13     $0.53     $1.24
  Income from discontinued operations    $0.39    $0.02     $0.59     $0.14
  Net income available to common
   shareholders                          $0.56    $0.15     $1.12     $1.38




  GABLES RESIDENTIAL
  Funds From Operations and Adjusted Funds From Operations
  September 30, 2003
  (Unaudited and amounts in thousands, except for per share data)


                                       Three months ended Nine months ended
                                          September 30,     September 30,
                                          2003     2002     2003     2002

  Net income available to common
   shareholders                          $14,558   $3,602  $28,191  $34,215

  Minority interest of common
   unitholders in Operating Partnership:
    Continuing operations                    902      772    3,029    7,464
    Discontinued operations                2,209       95    3,294      854
      Total                                3,111      867    6,323    8,318

  Real estate asset depreciation and
   amortization:
     Wholly-owned real estate assets -
      continuing operations               13,123   10,142   38,084   33,209
     Wholly-owned real estate assets -
      discontinued operations                201      594    1,068    1,770
     Joint venture real estate assets        368      347    1,057    1,091
       Total                              13,692   11,083   40,209   36,070

  Gain on sale of previously depreciated
   operating real estate assets:
     Wholly-owned real estate assets -
      continuing operations                    -        -        -  (17,906)
     Wholly-owned real estate assets -
      discontinued operations            (12,368)       -  (17,410)  (2,198)
     Joint venture real estate assets          -     (857)       -   (2,611)
       Total                             (12,368)    (857) (17,410) (22,715)

  Funds from operations available to
   common shareholders
    - basic and diluted                  $18,993  $14,695  $57,313  $55,888

  Recurring value retention capital
   expenditures:
    Carpet and flooring                    1,618    1,998    3,992    4,840
    Appliances                               185      233      515      584
    Other additions and improvements       1,057    1,255    3,578    4,426
       Total                               2,860    3,486    8,085    9,850

  Adjusted funds from operations
   available to common shareholders
   - basic and diluted                   $16,133  $11,209  $49,228  $46,038

  Average common shares and units
   outstanding - basic                    31,525   30,718   30,752   30,662
  Average common shares and units
   outstanding - diluted                  31,664   30,812   30,845   30,805

  Per common share data - basic:
  Funds from operations available to
   common shareholders                     $0.60    $0.48    $1.86    $1.82
  Adjusted funds from operations
   available to common shareholders        $0.51    $0.36    $1.60    $1.50

  Per common share data - diluted:
  Funds from operations available to
   common shareholders                     $0.60    $0.48    $1.86    $1.81
  Adjusted funds from operations
   available to common shareholders        $0.51    $0.36    $1.60    $1.49

  Common shares and units outstanding
   reconciliation:
  Average common shares and units
   outstanding - basic                    31,525   30,718   30,752   30,662
  Incremental shares from assumed
   conversions of:
    Stock options                            128       87       83      137
    Other                                     11        7       10        6
  Average common shares and units
   outstanding - diluted                  31,664   30,812   30,845   30,805



  GABLES RESIDENTIAL
  Results of Property Operations - Third Quarter Comparisons
  September 30, 2003
  (Unaudited and amounts in thousands, except for property data)

  The combined operating performance for all of the Company's wholly-owned
  communities that are included in continuing operations for the quarters
  ended September 30, 2003 ("3Q 2003") and September 30, 2002 ("3Q 2002") is
  as follows:

                        Number of
                         3Q 2003
                           Apt.
                          Homes    3Q 2003   3Q 2002  $ Change  % Change
  Rental and other
   property revenues:
  Same-store
   communities (1)        16,699   $45,172   $46,274  $(1,102)    -2.4%(A)
  Triple net master
   lease communities         728     1,646     1,646        -      0.0%
  Communities stabilized
   in 3Q 2003, but not
   in 3Q 2002                578     2,075     1,447      628     43.4%
  Development and lease-
   up communities            535     1,322        82    1,240   1512.2%
  Communities under
   renovation or not
   fully operational (2)   2,104     4,480     3,985      495     12.4%
  Acquired communities (2)   784     2,690         -    2,690        -
  Sold communities (2)         -         -         -        -        -
    Total property
     revenues             21,428   $57,385   $53,434   $3,951      7.4%

  Property operating and
   maintenance expenses (3):
  Same-store
   communities (1)                 $16,955   $17,173    $(218)    -1.3%(A)
  Triple net master
   lease communities                     -         -        -        -
  Communities stabilized
   in 3Q 2003, but not
   in 3Q 2002                          883     1,011     (128)   -12.7%
  Development and lease-
   up communities                      600        16      584   3650.0%
  Communities under
   renovation or not
   fully operational (2)             1,811     1,864      (53)    -2.8%
  Acquired
   communities (2)                   1,107         -    1,107        -
  Sold communities (2)                   -         -        -        -
    Total property
     operating and
     maintenance
     expenses                      $21,356   $20,064   $1,292      6.4%

  Property net operating
   income (NOI) (4):
  Same-store
   communities (1)                 $28,217   $29,101    $(884)    -3.0%(A)
  Triple net master
   lease communities                 1,646     1,646        -      0.0%
  Communities stabilized
   in 3Q 2003, but not
   in 3Q 2002                        1,192       436      756    173.4%
  Development and lease-
   up communities                      722        66      656    993.9%
  Communities under
   renovation or not
   fully operational (2)             2,669     2,121      548     25.8%
  Acquired
   communities (2)                   1,583         -    1,583        -
  Sold communities (2)                   -         -        -        -
    Total property net
     operating income
     (NOI)                         $36,029   $33,370   $2,659      8.0%

   Total property NOI as
    a percentage of
    total property
    revenues                         62.8%     62.5%        -      0.3%

  (1)  Communities that were owned and fully stabilized throughout both 3Q
       2003 and 3Q 2002  ("same-store").
  (2)  Communities that were in renovation or not fully operational,
       acquired, or sold subsequent to July 1, 2002, as applicable.
  (3)  Represents direct property operating and maintenance expenses as
       reflected in the Company's consolidated statements of operations and
       excludes certain expenses included in the determination of net income
       such as property management and other indirect operating expenses,
       interest expense and depreciation and amortization expense.
  (4)  Calculated as total property revenues less property operating and
       maintenance expenses as reflected above.

  (A) Additional information for the 62 same-store communities by market
      is as follows:

                                                        Physical Economic
                                                          Occup-  Occup-
                                       Number of  % of     ancy    ancy
                                       Apartment 3Q 2003  in 3Q   in 3Q
                 Market                  Homes     NOI     2003    2003

  South Florida                           4,377    29.0%   95.2%   93.5%
  Houston                                 4,589    25.6%   94.4%   93.0%
  Atlanta                                 3,431    16.8%   93.8%   90.7%
  Austin                                  1,677    11.7%   92.6%   91.7%
  Dallas                                  1,300    10.4%   94.9%   92.5%
  Washington, D.C.                           82     1.7%   92.3%   92.5%
  Other                                   1,243     4.8%   91.0%   83.6%
    Totals                               16,699   100.0%   94.1%   92.0%


                                        % Change from 3Q 2002 to 3Q 2003 in
                                       Economic
                 Market                Occupancy Revenues  Expenses    NOI

  South Florida                            2.0%     0.4%     10.1%    -4.6%
  Houston                                  1.0%    -2.3%     -4.4%    -1.0%
  Atlanta                                  2.6%    -5.4%      0.9%    -8.9%
  Austin                                  -2.2%    -6.0%    -16.6%     1.4%
  Dallas                                   1.8%    -1.6%     -8.1%     2.2%
  Washington, D.C.                        -0.8%     1.4%    -16.7%     8.8%
  Other                                   -1.8%    -1.9%      4.8%    -6.9%
    Totals                                 1.1%    -2.4%     -1.3%    -3.0%


DATASOURCE: Gables Residential



CONTACT:  Gables Investor Relations, [phone]



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