Associated Estates Realty Corporation Declares Preferred Share Dividend.

Associated Estates Realty Corporation announced today that a quarterly dividend of $0.54375 per one- tenth depositary share has been declared on the Company's 8.70% Class B Series II Cumulative Redeemable Preferred Shares , payable on March 15, 2005 to shareholders of record on March 1, 2005. This is the first quarterly dividend payable on this issue and will include in addition to the regular dividend a prorated amount of $0.03625 per depositary share for the 6-day period December 10, 2004 thru December 15, 2004. Each depositary share represents one-tenth of a share of the Company's 8.70% Class B Series II Cumulative Redeemable Preferred Shares.

Associated Estates Realty Corporation, one of the largest multifamily property owners in the United States, is a real estate investment trust ("REIT"), headquartered in Richmond Heights, Ohio, a suburb of Cleveland. The Company directly or indirectly owns, manages, or is a joint venture partner in 107 multifamily properties containing a total of 23,457 units located in 12 states.

For more information, please contact: Barbara E. Hasenstab, Vice President of Investor Relations and Corporate Communications, by telephone at 216-797-8798 or e-mail at IR@aecrealty.com. This press release and other corporate information are available through the Company's web site on the Internet at http://www.aecrealty.com/ . AEC's web site is linked to Sharebuilder, an online service that allows investments in shares of AEC common stock directly on a recurring basis.

CONTACT: Barbara E. Hasenstab, Vice President of Investor Relations and Corporate Communications of Associated Estates Realty Corporation, +1-216-797-8798, or IR@aecrealty.com

Web site: http://www.aecrealty.com/