Home Properties 8K Results of Operations and Financial Condition | SEC 3 Aug 12

EXHIBIT 99

HOME PROPERTIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

SECOND QUARTER 2012

TABLE OF CONTENTS

	2Q 2012 Supplemental Reports	Page
1.	Earnings Release	1-8
2.	Owned Community Results, Quarterly and Year-to-Date	9-12
3.	Physical Occupancy Comparison by Region	13
4.	Net Operating Results	14
5.	New Lease and Renewal Lease Rents vs. Expiring Lease Rents	15
6.	Resident Statistics	16
7.	Net Operating Income Detail and Seasonality Factor for NAV Calculation	17
8.	Operating Expense Detail	18
9.	Summary of Recent Acquisitions	19
10.	Summary of Recent Sales	20
11.	Breakdown of Owned Units by Market	21
12.	Debt Summary Schedule	22-24
13.	Recurring Capital Expenditure and Adjusted NOI Summary	25-27
14.	Development Communities	28
15.	2012 Earnings Guidance	29-30

FOR IMMEDIATE RELEASE

Home Properties Reports Second Quarter 2012 Results

FFO Per Share Exceeds Wall Street's Mean Estimate by 1 Cent

ROCHESTER, N.Y., August 2, 2012 – Home Properties, Inc. (NYSE: HME) today released financial results for the second quarter ended June 30, 2012. All results are reported on a diluted basis.

“Home Properties continued to post excellent results in the second quarter of 2012, with same-store net operating income growth of 8.0% compared to the same quarter last year, which is the largest year-over-year second quarter increase in the last six years,” said Edward J. Pettinella, Home Properties President and CEO. “Home Properties, like the entire multifamily sector, is currently enjoying the positive fundamentals in our business. Based on performance in the first half of 2012 and the favorable operating environment, we have increased our expectations for Funds From Operations results for the balance of the year.”

Earnings per share ("EPS") for the quarter ended June 30, 2012 was $0.28, compared to $0.20 for the quarter ended June 30, 2011. The $0.08 increase in EPS is primarily attributable to a $6.2 million increase in income from operations from both the properties owned throughout 2011 and 2012 (the “Core” properties) and those acquired, developed, or redeveloped subsequent to January 1, 2011 (the “Non-Core” properties).

For the quarter ended June 30, 2012, Funds From Operations ("FFO") was $57.6 million, or $0.96 per share, compared to $44.6 million, or $0.87 per share, for the quarter ended June 30, 2011, which equates to a 10.2% increase on a per-share basis. Second quarter 2012 FFO of $0.96 per share was $0.01 above the midpoint of the guidance range provided by management and the analysts' mean estimate, as reported by Thomson. Operating FFO (“OFFO”), which excludes acquisition costs of $0.045 per share, was a record high in the second quarter 2012 of $1.00 per share, four cents above the midpoint of the OFFO guidance range provided by management. A reconciliation of GAAP net income to FFO and OFFO is included in the financial data accompanying this news release.

Second Quarter Operating Results

For the second quarter of 2012, same-property comparisons (for 113 Core properties containing 37,811 apartment units owned since January 1, 2011) reflected an increase in rental income of 5.0% and a 4.8% increase in total revenues compared to the same quarter a year ago. Net operating income (“NOI”) increased by 8.0% from the second quarter of 2011. Property level operating expenses decreased by 0.3% compared to the prior year quarter, primarily due to decreases in electricity and natural gas heating costs, which were partially offset by increases in property insurance and real estate taxes.

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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Average physical occupancy for the Core properties was 96.2% during the second quarter of 2012, up from 95.8% during the second quarter of 2011. Average monthly rental rates of $1,218 represent a 4.5% increase compared to the year-ago period.

On a sequential basis, compared to the 2012 first quarter results for Core properties, rental income (excluding utility recovery) increased 1.8% in the second quarter of 2012, total revenues decreased 0.4%, expenses decreased 6.1% and NOI increased 3.1%. Average physical occupancy increased 0.7% to 96.2%. The total revenue decrease in the second quarter compared to the first quarter was due to the typical seasonality from lower heating cost reimbursements. The expense decrease between the first and second quarters represented seasonality from lower natural gas heating costs.

Physical occupancy for the 6,107 apartment units acquired/developed/redeveloped between January 1, 2011 and June 30, 2012 averaged 92.2% during the second quarter of 2012, at average monthly rents of $1,435.

Year-to-Date Operating Results

For the six months ended June 30, 2012, same-property comparisons for the Core properties reflected an increase in total revenues of 4.7% and a decrease in total expense of 1.6% resulting in an 8.9% increase in NOI compared to the first six months of 2011. Property level operating expenses decreased, primarily due to lower natural gas heating costs and snow removal costs. These decreases were partially offset by increases in property insurance and real estate taxes.

Average physical occupancy for the Core properties was 95.8% during the first six months of 2012, up from 95.6% a year ago, with average monthly rental rates of $1,213, an increase of 4.6% over the prior year period.

Acquisitions/Dispositions

As previously reported, during the second quarter of 2012, the Company acquired two apartment communities with a total of 668 units in the Washington, D.C. region and one community with 1,350 units in the Baltimore, Maryland region, for a combined purchase price of $298.2 million. In connection with these acquisitions, closing costs of approximately $2.7 million were incurred and are included in other expenses in the second quarter of 2012.

There were no dispositions of apartment communities in the second quarter of 2012. The Company previously announced it is marketing for sale 10 properties, with a total of 2,478 units in several regions, which are in various stages of the selling process. While closings are expected in the third and fourth quarters, every property listed for sale ultimately may not be sold.

Development

With construction finished on all the apartment units, the Company is nearing completion of The Apartments at Cobblestone Square, located in Fredericksburg, Virginia. Currently, 88% of the 314 units are leased.

The Company started construction in the fourth quarter of 2011 on Eleven55 Ripley, which will consist of 379 units located in downtown Silver Spring, Maryland. Initial occupancy is projected to occur in the third quarter of 2013, with completion of the entire project anticipated in 2014.

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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The Company started construction in the second quarter of 2012 on The Courts at Spring Mill Station in Conshohocken, Pennsylvania, a 385-apartment development. Initial occupancy is projected in the fourth quarter of 2013, and the entire project is expected to be completed in 2014.

Capital Markets Activities

As of June 30, 2012, the Company’s ratio of debt-to-total market capitalization was 44.2% (based on a June 30, 2012 stock price of $61.36 used to determine equity value), with $175 million outstanding on its $275 million revolving credit facility and $10.5 million of unrestricted cash on hand. Total debt of $2.9 billion was outstanding, at interest rates averaging 4.4% and with staggered maturities averaging five years. Approximately 75% of total indebtedness is at fixed rates. Interest coverage for the quarter was 2.9 times and the fixed charge ratio was 2.8 times.

As previously reported, a portion of the Howard Crossing acquisition was funded using the proceeds from the issuance of $50 million of unsecured senior guaranteed notes, which are due June 27, 2019 and bear interest at 4.16%. The balance of the purchase was funded through the line of credit and a $100 million unsecured bank demand loan, with the same terms and interest rate as the line of credit, which on June 30, 2012 was 1.55%.

On July 19, 2012, the Company entered into two interest rate swap agreements that effectively convert a $250 million unsecured term loan with a variable interest rate equal to the one-month LIBOR plus 1.3%, due on December 9, 2016, to a fixed rate of 1.99%. This will increase the amount of fixed rate indebtedness from 75% to 84%.

On September 17, 2010, the Company initiated an At-The-Market (ATM) equity offering program, with authorization to sell up to 3.6 million common shares. At the end of the first quarter 2012, the Company had 207,500 shares remaining. As previously reported, on May 14, 2012, the Company filed with the Securities and Exchange Commission to initiate a new ATM equity offering program through which it may sell up to 4.4 million common shares. During the second quarter, 928,299 shares were sold (including 22,200 shares with a settlement date in early July) at an average price of $61.52 generating gross proceeds of $57.1 million and net proceeds of $55.9 million. There are approximately 3.7 million common shares remaining under this program.

Outlook

Based on higher second quarter results than expected and higher results anticipated for the balance of the year, the Company has increased the midpoint of its prior FFO guidance by seven cents to $4.00 and the range of FFO per share to $3.96 to $4.04 from $3.87 to $3.99. This guidance range reflects management’s current assessment of economic and market conditions. Likewise, Operating FFO has been increased by nine cents to $4.05 at the midpoint with a range of $4.01 to $4.09. The difference between FFO and OFFO is solely due to expensed acquisition costs. Because projected acquisition costs are minimal, the quarterly breakdown for the balance of 2012 guidance on FFO and OFFO per share results is identical: third quarter $1.03 to $1.07; fourth quarter $1.00 to $1.04.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.66 per share for the quarter ended June 30, 2012. The dividend is payable on August 24, 2012 to shareholders of record on August 14, 2012 and is equivalent to an annualized rate of $2.64 per

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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share. The current annual dividend represents a 4.0% yield based on the July 31, 2012 closing price of $65.61. Home Properties’ common stock will begin trading ex-dividend on August 10, 2012.

Supplemental Information

The Company produces supplemental information that includes details regarding property operations, other income, acquisitions, sales, geographic market breakdown, debt and new development. The supplemental information is available via the Company's website through the "Investors" section or e-mail upon request.

Second Quarter 2012 Earnings Conference Call

The Company will conduct a conference call and simultaneous webcast tomorrow at 11:00 AM ET to review and comment on the information reported in this release. The webcast, which includes audio and a slide presentation, will be available, live at 11:00 AM and archived by 1:00 PM, through the "Investors" section home page of the website www.homeproperties.com. For live audio-only participation, please dial 800-913-1647 (International 212-231-2900).

Third Quarter 2012 Earnings Release and Conference Call

The Company’s third quarter 2012 financial results are scheduled to be released after the stock market closes on Thursday, November 1, 2012. A conference call, which will be simultaneously webcast, is scheduled for Friday, November 2, 2012 at 11:00 AM ET and will be accessible following the instructions for the current quarter's conference call.

Third Quarter 2012 Conference/Event Schedule

Home Properties is scheduled to participate in the BMO Capital Markets 7th Annual North American Real Estate Conference in Chicago on September 5-6, the Bank of America Merrill Lynch 2012 Global Real Estate Conference in New York City on September 12, and the Zelman & Associates 2012 Housing Summit in McLean, Virginia on September 27-28. Any audio presentation and related materials will be available in the “Investors” section of www.homeproperties.com.

This release contains forward-looking statements. Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that may cause actual results to differ include general economic and local real estate conditions, weather and other conditions that might affect operating expenses, the timely completion of repositioning and new development activities within anticipated budgets, the actual pace of future acquisitions and dispositions, and continued access to capital to fund growth.

Home Properties is a publicly traded multifamily real estate investment trust (REIT) that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast and Mid-Atlantic markets. An S&P 400 Company, Home Properties owns and operates 127 communities containing 44,232 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
Second Quarter Results:	Occupancy(a)							2Q 2012	2Q 2012 vs. 2Q 2011 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
		2Q 2012			2Q 2011		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		96.2	%		95.8	%	$	1,218		4.5	%		4.8	%		(0.3	%)		8.0	%
Non-Core Properties(c)		92.2	%	NA			$	1,435	NA			NA			NA			NA
TOTAL PORTFOLIO		95.7	%	NA			$	1,241	NA			NA			NA			NA

	Avg. Physical
Year-To-Date Results:	Occupancy(a)						YTD 2012		YTD 2012 vs. YTD 2011 % Growth
							Average
							Monthly		Base
	YTD			YTD			Rent /		Rental			Total			Total
		2012			2011		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.8	%		95.6	%	$	1,213		4.6	%		4.7	%		(1.6	%)		8.9	%
Non-Core Properties(c)		90.3	%	NA			$	1,442	NA			NA			NA			NA
TOTAL PORTFOLIO		95.2	%	NA			$	1,236	NA			NA			NA			NA

(a)	Average physical occupancy is defined as total possible rental income, net of vacancy expense, as a percentage of total possible rental income. Total possible rental income is determined by valuing occupied units at contract rates and vacant units at market rents.

(b)	Core Properties consist of 113 properties with 37,811 apartment units owned throughout 2011 and 2012.

(c)

Non-Core Properties consist of 13 properties with 6,107 apartment units acquired, developed, or redeveloped subsequent to January 1, 2011, such that full year comparable operating results are not available. Non-Core Properties excludes properties still under development where construction is not 100% complete.

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2012			2011			2012			2011
Rental income	$	150,026		$	129,764		$	295,220		$	257,185
Property other income		12,313			10,906			27,427			24,830
Other income		21			17			31			70
Total revenues		162,360			140,687			322,678			282,085
Operating and maintenance		58,727			53,721			119,999			112,000
General and administrative		11,037			8,826			19,350			15,062
Interest		31,528			32,800			63,054			65,831
Depreciation and amortization		41,671			34,735			82,075			69,214
Other expenses		2,693			99			2,710			109
Total expenses		145,656			130,181			287,188			262,216
Net income		16,704			10,506			35,490			19,869
Net income attributable to noncontrolling interest		(2,977	)		(2,311	)		(6,375	)		(4,450	)
Net income attributable to common stockholders	$	13,727		$	8,195		$	29,115		$	15,419
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income available to common stockholders	$	13,727		$	8,195		$	29,115		$	15,419
Real property depreciation and amortization		40,920			34,053			80,579			67,867
Noncontrolling interest		2,977			2,311			6,375			4,450
FFO - basic and diluted (1)	$	57,624		$	44,559		$	116,069		$	87,736

(1)

Pursuant to the updated guidance for Funds From Operations provided by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"), FFO is defined as net income (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")) excluding gains or losses from disposition of property, impairment write-downs of depreciable real estate, noncontrolling interest and extraordinary items plus depreciation from real property. The Company believes all adjustments not specifically provided for are consistent with the definition. Other similarly titled measures may not be calculated in the same manner.

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Home Properties Reports Second Quarter 2012 Results

For Immediate Release: August 2, 2012

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2012			2011			2012			2011
FFO – basic and diluted	$	57,624		$	44,559		$	116,069		$	87,736
FFO – basic and diluted	$	57,624		$	44,559		$	116,069		$	87,736
Acquisition costs of closed deals included in other expenses		2,693			99			2,710			109
Operating FFO (2)	$	60,317		$	44,658		$	118,779		$	87,845
FFO – basic and diluted	$	57,624		$	44,559		$	116,069		$	87,736
Recurring non-revenue generating capital expenses		(9,013	)		(7,803	)		(17,912	)		(15,576	)
Addback of non-cash interest expense		-			548			-			1,086
AFFO (3)	$	48,611		$	37,304		$	98,157		$	73,246
Operating FFO	$	60,317		$	44,658		$	118,779		$	87,845
Recurring non-revenue generating capital expenses		(9,013	)		(7,803	)		(17,912	)		(15,576	)
Addback of non-cash interest expense		-			548			-			1,086
Operating AFFO (2) (3)	$	51,304		$	37,403		$	100,867		$	73,355
Weighted average shares/units outstanding:
Shares – basic		49,026.4			39,479.2			48,694.4			38,742.9
Shares – diluted		49,678.7			40,230.4			49,327.9			39,407.5
Shares/units – basic (4)		59,676.5			50,635.5			59,371.0			49,964.9
Shares/units – diluted (4)		60,328.8			51,386.7			60,004.4			50,629.5
Per share/unit:
Net income – basic	$	0.28		$	0.21		$	0.60		$	0.40
Net income – diluted	$	0.28		$	0.20		$	0.59		$	0.39
FFO – basic	$	0.97		$	0.88		$	1.95		$	1.76
FFO – diluted	$	0.96		$	0.87		$	1.93		$	1.73
Operating FFO (2)	$	1.00		$	0.87		$	1.98		$	1.74
AFFO (3)	$	0.81		$	0.73		$	1.64		$	1.45
Operating AFFO (2) (3)	$	0.85		$	0.73		$	1.68		$	1.45
Common Dividend paid	$	0.66		$	0.62		$	1.32		$	1.24

(2)	Operating FFO is defined as FFO as computed in accordance with NAREIT definition, adjusted for the add back of acquisition costs on closed deals.

(3)

Adjusted Funds From Operations ("AFFO") is defined as gross FFO less an annual reserve for anticipated recurring, non-revenue generating capitalized costs of $848 and $800 per apartment unit in 2012 and 2011, respectively. Non-cash interest expense of the exchangeable senior notes in accordance with ASC 470-20 (formerly APB14-1) has been added back for 2011. The resulting sum is divided by the weighted average shares/units on a diluted basis to arrive at AFFO per share/unit.

(4)	Basic includes common stock outstanding plus operating partnership units in Home Properties, L.P., which can be converted into shares of common stock. Diluted includes additional common stock equivalents.

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For Immediate Release: August 2, 2012

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	June 30, 2012			December 31, 2011
Land	$	790,008		$	721,542
Construction in progress		77,864			64,201
Buildings, improvements and equipment		4,575,953			4,256,581
		5,443,825			5,042,324
Accumulated depreciation		(1,064,446	)		(983,759	)
Real estate, net		4,379,379			4,058,565

Cash and cash equivalents		10,499			8,297
Cash in escrows		36,014			32,604
Accounts receivable		11,871			12,142
Prepaid expenses		13,138			15,994
Deferred charges		14,964			16,322
Other assets		11,182			9,282
Total assets	$	4,477,047		$	4,153,206
Mortgage notes payable	$	2,217,361		$	2,260,836
Unsecured notes payable		550,000			400,000
Unsecured line of credit		175,000			2,500
Accounts payable		24,615			20,953
Accrued interest payable		9,951			10,286
Accrued expenses and other liabilities		31,720			29,474
Security deposits		20,176			19,513
Total liabilities		3,028,823			2,743,562

Common stockholders’ equity		1,194,093			1,153,668
Noncontrolling interest		254,131			255,976
Total equity		1,448,224			1,409,644
Total liabilities and equity	$	4,477,047		$	4,153,206

Total shares/units outstanding:
Common stock		49,819.5			48,321.3
Operating partnership units		10,638.4			10,739.8
		60,457.9			59,061.1

For further information:

David P. Gardner, Executive Vice President and Chief Financial Officer, (585) 246-4113

Charis W. Warshof, Vice President, Investor Relations, (585) 295-4237

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OWNED COMMUNITY RESULTS
Second Quarter 2012												2Q '12 versus 2Q '11
												% Growth
	# of		Date	2Q '12		2Q '12			2Q '11			Rental			Total			Total			Total			2Q '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

Baltimore Region
Annapolis Roads		282	6/17/2010	$	1,267		92.9	%		94.5	%		0.8	%		2.7	%		3.7	%		2.1	%
Bonnie Ridge		960	7/1/1999	$	1,131		96.6	%		95.1	%		3.0	%		4.7	%		(7.9	%)		10.9	%
Canterbury Apartments		618	7/15/1999	$	1,001		96.8	%		94.4	%		3.5	%		5.2	%		(2.9	%)		9.9	%
Charleston Place		858	9/30/2010	$	1,170		97.0	%		96.1	%		4.6	%		8.4	%		(5.5	%)		15.9	%
Country Village		344	4/30/1998	$	1,043		95.8	%		97.3	%		6.4	%		4.0	%		(2.1	%)		7.7	%
Dunfield Townhomes		312	11/1/2007	$	1,193		95.7	%		95.8	%		4.2	%		4.5	%		4.9	%		4.3	%
Falcon Crest		396	7/15/1999	$	1,025		96.0	%		96.8	%		3.4	%		2.6	%		(6.1	%)		6.7	%
Fox Hall Apartments		720	3/28/2007	$	895		93.4	%		92.6	%		3.6	%		0.6	%		(0.8	%)		1.5	%
Gateway Village		132	7/15/1999	$	1,360		97.7	%		94.9	%		2.9	%		6.9	%		(2.5	%)		12.1	%
Heritage Woods		164	10/4/2006	$	1,188		96.7	%		97.9	%		6.9	%		6.1	%		(2.0	%)		10.4	%
Howard Crossing		1,350	6/28/2012	$	1,053		91.8	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke Apartments		208	4/1/2010	$	989		93.7	%		94.2	%		6.9	%		7.7	%		5.4	%		9.1	%
Mill Towne Village Apts		384	5/31/2001	$	918		96.9	%		93.1	%		1.8	%		2.7	%		3.1	%		2.5	%
Morningside Heights		1,050	4/30/1998	$	919		93.1	%		93.6	%		3.6	%		(0.2	%)		6.0	%		(3.2	%)
Owings Run		504	7/15/1999	$	1,257		95.8	%		96.4	%		2.1	%		2.2	%		(5.2	%)		5.5	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,216		96.7	%		96.3	%		1.0	%		1.7	%		(5.7	%)		6.4	%
Saddle Brooke Apartments		468	10/29/2008	$	1,087		95.5	%		93.9	%		6.6	%		10.3	%		(1.8	%)		18.0	%
Selford Townhomes		102	7/15/1999	$	1,401		98.5	%		95.9	%		3.5	%		9.4	%		(1.1	%)		14.2	%
The Apts at Cambridge Court		544	8/23/2011	$	1,330		93.7	%		n/a			n/a			n/a			n/a			n/a
The Coves at Chesapeake		469	11/20/2006	$	1,277		94.1	%		92.6	%		4.2	%		4.1	%		(8.5	%)		11.5	%
The Greens at Columbia		168	7/29/2010	$	1,414		93.4	%		96.7	%		4.7	%		1.8	%		4.2	%		0.8	%
Timbercroft Townhomes		284	7/15/1999	$	957		100.2	%		98.7	%		3.8	%		4.7	%		(3.4	%)		9.3	%
Top Field		156	10/4/2006	$	1,315		96.9	%		97.0	%		4.9	%		4.8	%		(17.9	%)		16.2	%
Village Square Townhomes		370	7/15/1999	$	1,188		96.5	%		97.8	%		2.8	%		4.5	%		2.5	%		5.3	%
Westbrooke Apartments		110	4/1/2010	$	851		95.1	%		92.4	%		4.8	%		5.7	%		(10.7	%)		23.2	%
Woodholme Manor		177	3/30/2001	$	918		93.9	%		93.0	%		3.0	%		5.9	%		5.4	%		6.2	%
Total Baltimore Region		11,334		$	1,090		95.6	%		95.1	%		3.7	%		4.2	%		(2.2	%)		7.7	%		21.9	%

Boston Region
Gardencrest		696	6/28/2002	$	1,627		96.4	%		96.6	%		6.3	%		4.9	%		(0.9	%)		7.6	%
Highland House		172	5/31/2006	$	1,238		97.0	%		97.0	%		6.2	%		5.8	%		(3.9	%)		12.3	%
Liberty Commons		120	8/30/2006	$	1,296		96.4	%		96.9	%		3.4	%		1.3	%		8.2	%		(1.6	%)
Liberty Place		107	6/6/2006	$	1,495		96.6	%		96.6	%		3.7	%		5.0	%		5.4	%		4.8	%
Redbank Village		500	7/8/1998	$	935		97.4	%		96.3	%		4.6	%		6.5	%		3.2	%		8.7	%
Stone Ends		280	2/12/2003	$	1,311		95.6	%		96.8	%		6.1	%		5.8	%		3.3	%		7.1	%
The Commons at Haynes Farm		302	7/15/2011	$	1,271		97.2	%		n/a			n/a			n/a			n/a			n/a
The Heights at Marlborough		348	9/7/2006	$	1,239		95.2	%		95.5	%		5.8	%		4.9	%		(8.2	%)		14.0	%
The Meadows at Marlborough		264	9/7/2006	$	1,187		95.1	%		96.8	%		5.1	%		1.1	%		(2.4	%)		3.7	%
The Townhomes of Beverly		204	2/15/2007	$	1,528		96.2	%		96.2	%		3.6	%		4.1	%		(7.0	%)		10.8	%
The Village at Marshfield		276	3/17/2004	$	1,193		96.5	%		96.9	%		3.7	%		2.1	%		3.8	%		1.3	%
Westwoods		35	4/30/2007	$	1,300		100.0	%		94.9	%		5.5	%		18.8	%		13.5	%		22.5	%
Total Boston Region		3,304		$	1,308		96.3	%		96.5	%		5.3	%		4.6	%		(0.6	%)		7.5	%		8.2	%

Chicago Region
Blackhawk		371	10/20/2000	$	890		96.1	%		95.9	%		2.7	%		2.8	%		3.7	%		1.8	%
Courtyards Village		224	8/29/2001	$	887		97.7	%		97.1	%		6.4	%		10.4	%		11.7	%		9.1	%
Cypress Place		192	12/27/2000	$	1,002		97.9	%		97.4	%		7.7	%		7.9	%		(0.3	%)		15.7	%
Lakeview Townhomes		120	10/18/2010	$	1,220		96.7	%		95.1	%		6.6	%		13.4	%		14.7	%		12.4	%
The Colony		783	9/1/1999	$	891		97.0	%		96.4	%		3.3	%		4.7	%		0.2	%		9.1	%
The Gates of Deer Grove		204	12/15/2011	$	1,052		93.5	%		n/a			n/a			n/a			n/a			n/a
The New Colonies		672	6/23/1998	$	775		95.3	%		95.7	%		3.3	%		2.9	%		9.2	%		(2.4	%)
Total Chicago Region		2,566		$	883		96.5	%		96.2	%		4.1	%		5.4	%		4.9	%		5.8	%		3.6	%

Florida Region
The Hamptons		668	7/7/2004	$	998		96.4	%		96.0	%		2.5	%		2.4	%		(4.6	%)		9.5	%
Vinings at Hampton Village		168	7/7/2004	$	1,115		97.0	%		97.0	%		1.6	%		0.8	%		(7.9	%)		10.5	%
Total Florida Region		836		$	1,022		96.6	%		96.2	%		2.3	%		2.1	%		(5.3	%)		9.7	%		1.4	%

Long Island, NY Region
Bayview / Colonial		160	11/1/2000	$	1,302		98.9	%		98.6	%		4.5	%		3.8	%		(8.1	%)		13.8	%
Cambridge Village		82	3/1/2002	$	1,863		97.1	%		98.6	%		6.3	%		3.4	%		(0.0	%)		5.8	%
Crescent Club Apartments		257	9/30/2010	$	1,337		96.8	%		97.2	%		5.6	%		5.2	%		(11.3	%)		18.3	%
Devonshire Hills		656	7/16/2001	$	1,630		97.1	%		96.7	%		3.6	%		5.3	%		(1.1	%)		9.1	%
Hawthorne Court		434	4/4/2002	$	1,473		97.7	%		98.1	%		3.2	%		3.8	%		3.1	%		4.3	%
Heritage Square		80	4/4/2002	$	1,818		98.4	%		97.3	%		5.4	%		7.7	%		2.4	%		12.0	%
Holiday Square		144	5/31/2002	$	1,266		99.3	%		97.3	%		4.7	%		7.4	%		2.0	%		11.3	%
Lake Grove Apartments		368	2/3/1997	$	1,485		97.0	%		95.3	%		4.1	%		4.5	%		(3.1	%)		9.2	%
Mid-Island Estates		232	7/1/1997	$	1,456		98.7	%		98.4	%		5.2	%		6.5	%		(8.4	%)		16.2	%
Sayville Commons		342	7/15/2005	$	1,624		96.9	%		97.3	%		2.6	%		1.7	%		7.8	%		(2.8	%)
South Bay Manor		61	9/11/2000	$	1,669		97.8	%		96.4	%		2.3	%		3.7	%		(3.9	%)		9.9	%
Southern Meadows		452	6/29/2001	$	1,455		97.3	%		97.3	%		4.0	%		2.7	%		(0.3	%)		4.8	%
Westwood Village Apts		242	3/1/2002	$	2,456		98.4	%		96.1	%		4.1	%		7.9	%		0.7	%		13.0	%
Woodmont Village Apts		97	3/1/2002	$	1,368		96.3	%		97.2	%		3.6	%		2.6	%		(2.6	%)		5.3	%
Yorkshire Village Apts		40	3/1/2002	$	1,883		97.2	%		96.7	%		3.4	%		6.7	%		(5.3	%)		20.7	%
Total Long Island Region		3,647		$	1,575		97.5	%		97.1	%		4.0	%		4.7	%		(0.8	%)		8.5	%		10.4	%

Page 9

Table of Contents

OWNED COMMUNITY RESULTS
Second Quarter 2012												2Q '12 versus 2Q '11
												% Growth
	# of		Date	2Q '12		2Q '12			2Q '11			Rental			Total			Total			Total			2Q '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

New Jersey Region
Barrington Gardens		148	3/1/2005	$	1,279		97.4	%		97.6	%		7.8	%		5.9	%		0.7	%		9.6	%
Chatham Hill Apartments		308	1/30/2004	$	1,854		95.7	%		95.5	%		6.2	%		5.4	%		0.7	%		7.6	%
East Hill Gardens		33	7/8/1998	$	1,608		96.7	%		92.4	%		3.6	%		9.2	%		16.9	%		5.3	%
Hackensack Gardens		198	3/1/2005	$	1,171		98.0	%		98.8	%		5.3	%		6.5	%		5.8	%		6.9	%
Jacob Ford Village		270	2/15/2007	$	1,316		98.1	%		96.9	%		6.9	%		8.7	%		(11.8	%)		19.0	%
Lakeview		106	7/8/1998	$	1,421		98.0	%		95.2	%		3.3	%		5.4	%		1.3	%		7.9	%
Northwood Apartments		134	1/30/2004	$	1,385		97.4	%		96.0	%		4.6	%		7.3	%		(1.0	%)		12.4	%
Oak Manor		77	7/8/1998	$	1,867		97.8	%		98.2	%		5.6	%		2.0	%		(2.0	%)		3.8	%
Pleasant View		1,142	7/8/1998	$	1,186		95.9	%		95.8	%		3.8	%		2.7	%		1.2	%		3.5	%
Pleasure Bay		270	7/8/1998	$	1,076		96.5	%		96.0	%		5.2	%		5.4	%		2.3	%		8.1	%
Royal Gardens Apartments		550	5/28/1997	$	1,288		97.4	%		96.2	%		4.1	%		5.3	%		(6.4	%)		12.6	%
Wayne Village		275	7/8/1998	$	1,438		97.3	%		96.1	%		3.2	%		3.9	%		(3.3	%)		7.6	%
Windsor Realty		67	7/8/1998	$	1,316		94.3	%		98.3	%		3.1	%		1.2	%		6.1	%		(1.9	%)
Total New Jersey Region		3,578		$	1,318		96.8	%		96.2	%		4.7	%		4.7	%		(0.9	%)		8.0	%		9.1	%

Philadelphia Region
Castle Club		158	3/15/2000	$	1,014		95.7	%		94.3	%		4.5	%		7.3	%		4.1	%		9.8	%
Chesterfield		247	9/23/1997	$	940		95.9	%		94.7	%		2.7	%		4.7	%		(1.8	%)		10.4	%
Curren Terrace		318	9/23/1997	$	902		95.5	%		96.1	%		5.1	%		5.0	%		1.2	%		8.7	%
Glen Brook		174	7/28/1999	$	862		94.3	%		92.3	%		4.6	%		7.7	%		(1.9	%)		22.1	%
Glen Manor		174	9/23/1997	$	820		92.4	%		97.3	%		1.3	%		(6.9	%)		8.8	%		(20.8	%)
Golf Club		399	3/15/2000	$	1,126		95.4	%		95.0	%		3.9	%		1.9	%		0.4	%		2.8	%
Hill Brook Place		274	7/28/1999	$	934		97.5	%		95.4	%		4.4	%		8.3	%		(4.8	%)		21.3	%
Home Properties of Bryn Mawr		316	3/15/2000	$	1,417		92.4	%		88.7	%		13.6	%		15.6	%		(11.2	%)		35.9	%
Home Properties of Devon		631	3/15/2000	$	1,217		93.8	%		93.8	%		7.8	%		7.4	%		(4.3	%)		14.6	%
New Orleans Park		442	7/28/1999	$	895		95.4	%		95.2	%		3.6	%		2.2	%		2.2	%		2.2	%
Racquet Club		466	7/7/1998	$	1,107		95.9	%		95.3	%		5.6	%		5.5	%		2.3	%		7.6	%
Racquet Club South		103	5/27/1999	$	940		95.1	%		96.3	%		4.7	%		2.1	%		4.1	%		0.3	%
Ridley Brook		244	7/28/1999	$	961		96.0	%		94.0	%		2.7	%		3.4	%		1.5	%		5.1	%
Sherry Lake		298	7/23/1998	$	1,254		96.9	%		97.7	%		5.4	%		4.7	%		8.5	%		2.9	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,175		98.2	%		98.3	%		5.0	%		4.2	%		5.5	%		3.3	%
The Landings		384	11/22/1996	$	1,053		97.2	%		97.0	%		5.9	%		7.4	%		11.5	%		4.8	%
Trexler Park		250	3/15/2000	$	1,109		95.9	%		96.3	%		5.3	%		4.4	%		1.8	%		6.1	%
Trexler Park West		216	8/15/2008	$	1,358		96.6	%		97.2	%		6.1	%		6.5	%		7.2	%		6.2	%
Waterview Apts		203	7/14/2011	$	1,050		93.6	%		n/a			n/a			n/a			n/a			n/a
William Henry		363	3/15/2000	$	1,191		93.9	%		94.7	%		7.9	%		8.1	%		3.0	%		11.1	%
Total Philadelphia Region		5,806		$	1,087		95.3	%		95.0	%		5.9	%		5.8	%		1.1	%		9.2	%		11.8	%

Washington, D.C. Region
1200 East West		247	5/11/2010	$	1,887		96.5	%		96.2	%		9.4	%		11.7	%		(10.0	%)		22.9	%
Arbor Park of Alexandria		851	Redevelopment	$	1,441		81.5	%		88.1	%		8.8	%		1.7	%		(7.8	%)		8.0	%
Braddock Lee		255	3/13/1998	$	1,376		99.0	%		98.6	%		4.3	%		4.9	%		7.0	%		3.6	%
Cider Mill		864	9/27/2002	$	1,184		95.6	%		93.9	%		3.1	%		6.1	%		3.2	%		8.1	%
Cinnamon Run		511	12/28/2005	$	1,277		92.3	%		95.5	%		3.6	%		0.5	%		2.7	%		(0.5	%)
Cobblestone Square		314	Under Construction (2)	$	1,268		n/a			n/a			n/a			n/a			n/a			n/a
Courts at Huntington Station		421	Lease Up	$	1,991		90.3	%		n/a			n/a			n/a			n/a			n/a
East Meadow		150	8/1/2000	$	1,396		97.9	%		97.5	%		4.1	%		3.1	%		(5.4	%)		8.3	%
Elmwood Terrace		504	6/30/2000	$	961		96.0	%		95.1	%		4.5	%		6.2	%		(4.0	%)		15.2	%
Falkland Chase		450	9/10/2003	$	1,441		95.4	%		95.2	%		3.2	%		4.2	%		5.6	%		3.5	%
Hunters Glen		108	4/19/2011	$	971		95.7	%		n/a			n/a			n/a			n/a			n/a
Mount Vernon Square		1,387	12/27/2006	$	1,275		95.7	%		95.2	%		3.5	%		4.6	%		(2.0	%)		7.9	%
Newport Village		937	10/17/2011	$	1,548		95.5	%		n/a			n/a			n/a			n/a			n/a
Park Shirlington		294	3/13/1998	$	1,367		97.7	%		98.5	%		4.6	%		2.7	%		5.4	%		1.0	%
Peppertree Farm		879	12/28/2005	$	1,242		94.2	%		93.7	%		3.1	%		4.2	%		1.7	%		5.7	%
Seminary Hill		296	7/1/1999	$	1,354		98.7	%		99.0	%		5.7	%		4.9	%		2.4	%		6.6	%
Seminary Towers		544	7/1/1999	$	1,426		96.2	%		95.6	%		6.3	%		6.0	%		4.8	%		6.8	%
Somerset Park		108	10/11/2011	$	1,428		98.3	%		n/a			n/a			n/a			n/a			n/a
Tamarron Apartments		132	7/15/1999	$	1,567		97.0	%		96.1	%		3.0	%		3.4	%		(3.7	%)		6.3	%
The Apts at Wellington Trace		240	3/2/2004	$	1,383		97.1	%		97.9	%		5.8	%		6.5	%		0.2	%		9.5	%
The Courts at Dulles		411	11/30/2011	$	1,531		96.5	%		n/a			n/a			n/a			n/a			n/a
The Courts at Fair Oaks		364	9/30/2010	$	1,486		95.9	%		96.1	%		4.2	%		5.8	%		5.5	%		6.0	%
The Manor - MD		435	8/31/2001	$	1,317		95.5	%		96.6	%		3.4	%		4.2	%		(10.9	%)		12.4	%
The Manor - VA		198	2/19/1999	$	1,098		98.5	%		99.0	%		7.6	%		8.7	%		2.4	%		13.0	%
The Manor East		164	5/11/2012	$	1,035		96.5	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185	12/16/2002	$	1,442		97.0	%		96.8	%		6.2	%		7.4	%		4.3	%		9.0	%
Village at Potomac Falls		247	8/5/2010	$	1,374		97.6	%		97.6	%		8.6	%		7.4	%		(0.6	%)		12.6	%
Virginia Village		344	5/31/2001	$	1,401		98.7	%		99.5	%		6.7	%		4.3	%		(14.6	%)		14.9	%
West Springfield		244	11/18/2002	$	1,549		96.7	%		97.9	%		6.8	%		7.0	%		5.2	%		7.9	%
Westchester West		345	12/30/2008	$	1,328		93.7	%		92.0	%		2.6	%		5.5	%		3.2	%		6.8	%
Woodleaf Apartments		228	3/19/2004	$	1,286		94.9	%		93.8	%		3.7	%		3.1	%		4.4	%		2.5	%
Woodway at Trinity Centre		504	5/17/2012	$	1,369		94.9	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C. Region		13,161		$	1,323		96.0	%		95.8	%		4.5	%		5.1	%		0.3	%		7.8	%		33.6	%

TOTAL OWNED PORTFOLIO		44,232		$	1,241		95.7	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		37,811		$	1,218		96.2	%		95.8	%		4.5	%		4.8	%		(0.3	%)		8.0	%

(1)	Reflects net change in base rental rates before utility reimbursements and economic occupancy changes.

(2)	For properties classified as Under Construction, see Development Pipeline schedule for occupancy information.

Page 10

Table of Contents

OWNED COMMUNITY RESULTS
June YTD												YTD '12 versus YTD '11
												% Growth
	# of		Date	YTD '12		YTD '12			YTD '11			Rental			Total			Total			Total			YTD '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

Baltimore Region
Annapolis Roads		282	6/17/2010	$	1,260		94.0	%		91.7	%		1.3	%		8.2	%		(6.2	%)		17.9	%
Bonnie Ridge		960	7/1/1999	$	1,128		96.1	%		94.6	%		3.5	%		3.0	%		(8.0	%)		8.7	%
Canterbury Apartments		618	7/15/1999	$	996		95.4	%		94.3	%		3.8	%		4.5	%		(3.0	%)		9.0	%
Charleston Place		858	9/30/2010	$	1,164		96.5	%		96.9	%		4.5	%		6.5	%		(4.8	%)		12.2	%
Country Village		344	4/30/1998	$	1,036		95.8	%		97.1	%		7.0	%		3.4	%		(3.1	%)		7.3	%
Dunfield Townhomes		312	11/1/2007	$	1,189		95.7	%		95.9	%		4.5	%		3.9	%		0.3	%		5.7	%
Falcon Crest		396	7/15/1999	$	1,022		96.6	%		96.0	%		3.5	%		4.4	%		(6.2	%)		9.8	%
Fox Hall Apartments		720	3/28/2007	$	890		93.9	%		92.5	%		3.7	%		4.7	%		0.2	%		8.2	%
Gateway Village		132	7/15/1999	$	1,365		95.8	%		95.8	%		3.6	%		3.9	%		(2.9	%)		7.6	%
Heritage Woods		164	10/4/2006	$	1,188		95.9	%		98.0	%		7.9	%		6.5	%		(3.4	%)		11.9	%
Howard Crossing		1,350	6/28/2012	$	1,053		91.8	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke Apartments		208	4/1/2010	$	983		94.2	%		95.2	%		6.9	%		8.1	%		(0.1	%)		13.5	%
Mill Towne Village Apts		384	5/31/2001	$	915		95.9	%		93.8	%		2.2	%		3.0	%		(1.3	%)		5.7	%
Morningside Heights		1,050	4/30/1998	$	919		92.3	%		93.4	%		4.1	%		1.2	%		3.3	%		0.1	%
Owings Run		504	7/15/1999	$	1,255		95.4	%		96.2	%		2.6	%		1.5	%		(4.6	%)		4.2	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,211		96.9	%		95.0	%		1.3	%		3.4	%		(1.9	%)		6.7	%
Saddle Brooke Apartments		468	10/29/2008	$	1,079		95.1	%		94.3	%		6.3	%		8.5	%		(7.6	%)		19.5	%
Selford Townhomes		102	7/15/1999	$	1,397		97.3	%		94.1	%		3.9	%		11.3	%		0.6	%		16.4	%
The Apts at Cambridge Court		544	8/23/2011	$	1,327		92.7	%		n/a			n/a			n/a			n/a			n/a
The Coves at Chesapeake		469	11/20/2006	$	1,271		93.6	%		91.2	%		4.1	%		7.4	%		(7.2	%)		15.9	%
The Greens at Columbia		168	7/29/2010	$	1,406		94.5	%		96.3	%		4.8	%		3.7	%		(1.1	%)		5.6	%
Timbercroft Townhomes		284	7/15/1999	$	957		100.1	%		99.0	%		3.8	%		5.4	%		(1.4	%)		9.2	%
Top Field		156	10/4/2006	$	1,307		95.6	%		97.8	%		5.2	%		3.2	%		(9.1	%)		8.9	%
Village Square Townhomes		370	7/15/1999	$	1,186		96.1	%		96.8	%		3.2	%		4.8	%		(1.7	%)		7.9	%
Westbrooke Apartments		110	4/1/2010	$	849		95.3	%		93.0	%		5.2	%		7.9	%		(7.0	%)		24.0	%
Woodholme Manor		177	3/30/2001	$	915		95.1	%		93.7	%		3.1	%		5.6	%		5.5	%		5.6	%
Total Baltimore Region		11,334		$	1,086		95.3	%		94.9	%		4.0	%		4.6	%		(3.2	%)		9.0	%		22.3	%

Boston Region
Gardencrest		696	6/28/2002	$	1,612		96.3	%		95.8	%		6.0	%		6.3	%		(7.1	%)		13.9	%
Highland House		172	5/31/2006	$	1,227		97.2	%		96.1	%		6.6	%		8.4	%		(0.0	%)		15.5	%
Liberty Commons		120	8/30/2006	$	1,289		96.4	%		97.4	%		4.1	%		2.6	%		2.5	%		2.6	%
Liberty Place		107	6/6/2006	$	1,488		96.4	%		95.6	%		3.9	%		5.4	%		2.8	%		7.2	%
Redbank Village		500	7/8/1998	$	931		97.5	%		96.9	%		5.4	%		6.9	%		2.9	%		9.7	%
Stone Ends		280	2/12/2003	$	1,300		95.1	%		95.5	%		5.7	%		5.6	%		8.1	%		4.0	%
The Commons at Haynes Farm		302	7/15/2011	$	1,266		96.5	%		n/a			n/a			n/a			n/a			n/a
The Heights at Marlborough		348	9/7/2006	$	1,227		94.3	%		94.6	%		5.3	%		5.4	%		1.2	%		8.6	%
The Meadows at Marlborough		264	9/7/2006	$	1,183		94.5	%		96.4	%		5.4	%		2.5	%		(6.3	%)		10.7	%
The Townhomes of Beverly		204	2/15/2007	$	1,519		96.5	%		95.9	%		3.6	%		4.7	%		(11.2	%)		15.8	%
The Village at Marshfield		276	3/17/2004	$	1,184		96.1	%		96.6	%		3.6	%		4.1	%		9.6	%		0.5	%
Westwoods		35	4/30/2007	$	1,294		97.3	%		96.5	%		6.3	%		12.7	%		10.2	%		15.0	%
Total Boston Region		3,304		$	1,298		96.0	%		96.0	%		5.2	%		5.6	%		(1.0	%)		9.9	%		8.0	%

Chicago Region
Blackhawk		371	10/20/2000	$	889		95.7	%		95.7	%		3.5	%		3.1	%		(3.5	%)		11.0	%
Courtyards Village		224	8/29/2001	$	881		97.3	%		97.4	%		6.6	%		8.1	%		9.2	%		7.1	%
Cypress Place		192	12/27/2000	$	994		97.3	%		97.7	%		7.5	%		6.7	%		(7.1	%)		21.0	%
Lakeview Townhomes		120	10/18/2010	$	1,208		95.4	%		93.9	%		6.4	%		14.3	%		(5.4	%)		34.8	%
The Colony		783	9/1/1999	$	888		96.8	%		96.7	%		3.6	%		4.0	%		0.1	%		7.6	%
The Gates of Deer Grove		204	12/15/2011	$	1,046		92.9	%		n/a			n/a			n/a			n/a			n/a
The New Colonies		672	6/23/1998	$	773		95.5	%		95.9	%		3.9	%		3.6	%		3.2	%		4.1	%
Total Chicago Region		2,566		$	880		96.3	%		96.3	%		4.5	%		5.0	%		(0.1	%)		10.0	%		3.8	%

Florida Region
The Hamptons		668	7/7/2004	$	997		95.0	%		95.1	%		2.5	%		2.9	%		2.8	%		3.1	%
Vinings at Hampton Village		168	7/7/2004	$	1,114		96.3	%		96.8	%		1.6	%		1.0	%		1.5	%		0.4	%
Total Florida Region		836		$	1,021		95.3	%		95.5	%		2.3	%		2.5	%		2.5	%		2.5	%		1.3	%

Long Island, NY Region
Bayview / Colonial		160	11/1/2000	$	1,297		99.0	%		98.3	%		4.6	%		5.6	%		(13.0	%)		23.4	%
Cambridge Village		82	3/1/2002	$	1,857		97.6	%		98.2	%		6.5	%		3.5	%		0.0	%		6.1	%
Crescent Club Apartments		257	9/30/2010	$	1,329		94.9	%		97.3	%		5.7	%		4.3	%		(9.6	%)		16.3	%
Devonshire Hills		656	7/16/2001	$	1,625		96.8	%		96.3	%		3.9	%		4.5	%		(3.1	%)		9.3	%
Hawthorne Court		434	4/4/2002	$	1,470		97.3	%		97.5	%		3.4	%		2.9	%		2.7	%		3.1	%
Heritage Square		80	4/4/2002	$	1,807		98.6	%		97.4	%		5.1	%		6.1	%		1.5	%		10.0	%
Holiday Square		144	5/31/2002	$	1,258		98.6	%		96.3	%		4.2	%		7.5	%		1.7	%		11.9	%
Lake Grove Apartments		368	2/3/1997	$	1,480		97.0	%		95.4	%		4.2	%		5.3	%		(1.8	%)		10.1	%
Mid-Island Estates		232	7/1/1997	$	1,449		98.6	%		97.1	%		5.1	%		7.5	%		(2.4	%)		14.2	%
Sayville Commons		342	7/15/2005	$	1,617		96.6	%		96.4	%		2.5	%		2.3	%		5.4	%		(0.2	%)
South Bay Manor		61	9/11/2000	$	1,668		97.2	%		95.1	%		2.7	%		6.8	%		(6.2	%)		19.1	%
Southern Meadows		452	6/29/2001	$	1,449		96.4	%		95.8	%		3.8	%		2.7	%		(2.7	%)		6.8	%
Westwood Village Apts		242	3/1/2002	$	2,448		96.8	%		95.8	%		4.1	%		6.8	%		2.6	%		9.8	%
Woodmont Village Apts		97	3/1/2002	$	1,361		97.0	%		96.7	%		3.3	%		3.8	%		(4.5	%)		8.5	%
Yorkshire Village Apts		40	3/1/2002	$	1,878		97.4	%		97.8	%		3.4	%		2.8	%		(2.6	%)		9.2	%
Total Long Island Region		3,647		$	1,569		97.0	%		96.5	%		4.0	%		4.5	%		(1.3	%)		8.9	%		10.4	%

Page 11

Table of Contents

OWNED COMMUNITY RESULTS
June YTD												YTD '12 versus YTD '11
												% Growth
	# of		Date	YTD '12		YTD '12			YTD '11			Rental			Total			Total			Total			YTD '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

New Jersey Region
Barrington Gardens		148	3/1/2005	$	1,265		96.7	%		96.7	%		7.6	%		8.6	%		(3.6	%)		19.2	%
Chatham Hill Apartments		308	1/30/2004	$	1,846		94.3	%		94.8	%		7.0	%		6.0	%		(3.1	%)		10.4	%
East Hill Gardens		33	7/8/1998	$	1,602		97.5	%		92.9	%		3.7	%		10.6	%		8.4	%		11.8	%
Hackensack Gardens		198	3/1/2005	$	1,162		97.2	%		98.4	%		5.3	%		4.2	%		4.3	%		4.1	%
Jacob Ford Village		270	2/15/2007	$	1,305		98.7	%		96.1	%		6.8	%		10.1	%		(10.6	%)		23.4	%
Lakeview		106	7/8/1998	$	1,417		97.3	%		96.6	%		3.8	%		3.0	%		(6.7	%)		11.1	%
Northwood Apartments		134	1/30/2004	$	1,379		96.7	%		96.7	%		4.4	%		5.7	%		18.3	%		(1.8	%)
Oak Manor		77	7/8/1998	$	1,858		97.7	%		95.9	%		6.0	%		6.3	%		(0.5	%)		9.9	%
Pleasant View		1,142	7/8/1998	$	1,183		95.3	%		95.6	%		3.8	%		3.3	%		(0.2	%)		5.8	%
Pleasure Bay		270	7/8/1998	$	1,068		95.9	%		94.9	%		3.8	%		4.7	%		(7.1	%)		17.2	%
Royal Gardens Apartments		550	5/28/1997	$	1,282		96.8	%		95.8	%		3.8	%		4.5	%		(8.2	%)		14.4	%
Wayne Village		275	7/8/1998	$	1,433		97.3	%		95.9	%		3.1	%		4.9	%		(2.3	%)		9.1	%
Windsor Realty		67	7/8/1998	$	1,311		94.9	%		96.8	%		2.9	%		3.3	%		(3.8	%)		9.3	%
Total New Jersey Region		3,578		$	1,312		96.2	%		95.8	%		4.6	%		5.0	%		(2.7	%)		10.4	%		8.9	%

Philadelphia Region
Castle Club		158	3/15/2000	$	1,009		96.2	%		94.5	%		4.7	%		5.5	%		2.0	%		8.4	%
Chesterfield		247	9/23/1997	$	935		95.9	%		95.5	%		3.3	%		1.1	%		(5.0	%)		6.5	%
Curren Terrace		318	9/23/1997	$	899		95.6	%		94.7	%		5.1	%		6.1	%		(2.9	%)		15.4	%
Glen Brook		174	7/28/1999	$	856		93.8	%		92.4	%		3.8	%		4.7	%		(7.4	%)		24.5	%
Glen Manor		174	9/23/1997	$	821		94.0	%		95.6	%		1.8	%		(3.2	%)		(1.0	%)		(5.6	%)
Golf Club		399	3/15/2000	$	1,122		95.1	%		94.9	%		4.2	%		2.1	%		(5.7	%)		7.0	%
Hill Brook Place		274	7/28/1999	$	930		96.1	%		95.6	%		4.9	%		2.2	%		(4.9	%)		9.3	%
Home Properties of Bryn Mawr		316	3/15/2000	$	1,401		95.4	%		92.7	%		13.8	%		12.9	%		(15.2	%)		32.9	%
Home Properties of Devon		631	3/15/2000	$	1,210		93.6	%		94.1	%		8.3	%		5.5	%		(2.3	%)		10.5	%
New Orleans Park		442	7/28/1999	$	890		94.8	%		95.0	%		3.9	%		0.5	%		(2.2	%)		3.5	%
Racquet Club		466	7/7/1998	$	1,104		95.5	%		95.7	%		5.9	%		3.4	%		(3.5	%)		8.4	%
Racquet Club South		103	5/27/1999	$	938		95.1	%		96.6	%		5.4	%		0.5	%		(3.1	%)		4.1	%
Ridley Brook		244	7/28/1999	$	959		96.0	%		94.0	%		3.4	%		3.8	%		(2.4	%)		9.8	%
Sherry Lake		298	7/23/1998	$	1,246		97.3	%		96.2	%		5.3	%		3.6	%		(1.3	%)		6.4	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,165		97.9	%		98.0	%		4.4	%		3.7	%		0.9	%		5.5	%
The Landings		384	11/22/1996	$	1,048		96.5	%		96.8	%		6.1	%		4.8	%		5.0	%		4.6	%
Trexler Park		250	3/15/2000	$	1,104		94.6	%		96.5	%		5.7	%		2.8	%		(6.5	%)		9.6	%
Trexler Park West		216	8/15/2008	$	1,345		96.0	%		97.2	%		6.0	%		7.2	%		4.0	%		8.9	%
Waterview Apts		203	7/14/2011	$	1,051		92.8	%		n/a			n/a			n/a			n/a			n/a
William Henry		363	3/15/2000	$	1,184		94.4	%		94.1	%		7.7	%		8.4	%		(6.5	%)		21.0	%
Total Philadelphia Region		5,806		$	1,081		95.3	%		95.1	%		6.1	%		4.5	%		(3.5	%)		10.7	%		12.0	%

Washington, D.C. Region
1200 East West		247	5/11/2010	$	1,880		96.7	%		95.6	%		9.7	%		13.4	%		(7.3	%)		24.2	%
Arbor Park of Alexandria		851	Redevelopment	$	1,431		80.4	%		92.1	%		9.0	%		(3.8	%)		(4.6	%)		(3.2	%)
Braddock Lee		255	3/13/1998	$	1,370		98.2	%		98.2	%		4.3	%		2.5	%		1.0	%		3.4	%
Cider Mill		864	9/27/2002	$	1,180		95.7	%		94.5	%		3.7	%		4.9	%		3.7	%		5.8	%
Cinnamon Run		511	12/28/2005	$	1,269		93.0	%		94.8	%		3.0	%		2.4	%		2.6	%		2.3	%
Cobblestone Square		314	Under Construction (2)	$	1,265		n/a			n/a			n/a			n/a			n/a			n/a
Courts at Huntington Station		421	Lease Up	$	2,008		82.2	%		n/a			n/a			n/a			n/a			n/a
East Meadow		150	8/1/2000	$	1,392		97.9	%		98.4	%		4.6	%		2.5	%		(5.8	%)		7.3	%
Elmwood Terrace		504	6/30/2000	$	954		95.9	%		95.1	%		4.2	%		5.5	%		(2.0	%)		11.9	%
Falkland Chase		450	9/10/2003	$	1,431		95.7	%		94.7	%		3.5	%		4.6	%		4.8	%		4.5	%
Hunters Glen		108	4/19/2011	$	963		96.2	%		n/a			n/a			n/a			n/a			n/a
Mount Vernon Square		1,387	12/27/2006	$	1,273		94.3	%		95.8	%		4.2	%		3.2	%		(1.8	%)		5.9	%
Newport Village		937	10/17/2011	$	1,548		94.3	%		n/a			n/a			n/a			n/a			n/a
Park Shirlington		294	3/13/1998	$	1,363		97.6	%		97.6	%		4.7	%		3.7	%		0.9	%		5.4	%
Peppertree Farm		879	12/28/2005	$	1,238		94.4	%		92.2	%		3.1	%		4.9	%		1.5	%		7.0	%
Seminary Hill		296	7/1/1999	$	1,351		97.8	%		97.8	%		5.5	%		4.6	%		0.5	%		7.5	%
Seminary Towers		544	7/1/1999	$	1,421		95.5	%		95.6	%		6.8	%		5.1	%		1.2	%		7.8	%
Somerset Park		108	10/11/2011	$	1,425		97.6	%		n/a			n/a			n/a			n/a			n/a
Tamarron Apartments		132	7/15/1999	$	1,561		96.2	%		97.1	%		3.1	%		1.3	%		(6.9	%)		4.9	%
The Apts at Wellington Trace		240	3/2/2004	$	1,376		97.1	%		98.2	%		6.4	%		5.3	%		0.7	%		7.4	%
The Courts at Dulles		411	11/30/2011	$	1,536		94.1	%		n/a			n/a			n/a			n/a			n/a
The Courts at Fair Oaks		364	9/30/2010	$	1,478		96.3	%		95.4	%		4.1	%		6.4	%		4.4	%		7.2	%
The Manor - MD		435	8/31/2001	$	1,311		95.1	%		94.3	%		3.5	%		5.2	%		(6.5	%)		12.1	%
The Manor - VA		198	2/19/1999	$	1,090		97.8	%		98.2	%		7.8	%		6.3	%		(0.6	%)		11.2	%
The Manor East		164	5/11/2012	$	1,035		96.5	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185	12/16/2002	$	1,428		97.1	%		96.6	%		5.8	%		6.5	%		(0.8	%)		10.3	%
Village at Potomac Falls		247	8/5/2010	$	1,364		96.9	%		97.1	%		7.6	%		7.6	%		1.2	%		11.6	%
Virginia Village		344	5/31/2001	$	1,397		96.9	%		98.8	%		7.4	%		2.8	%		(6.6	%)		8.1	%
West Springfield		244	11/18/2002	$	1,540		96.0	%		98.2	%		7.3	%		6.6	%		4.1	%		7.8	%
Westchester West		345	12/30/2008	$	1,316		93.8	%		92.1	%		2.1	%		4.9	%		4.5	%		5.1	%
Woodleaf Apartments		228	3/19/2004	$	1,284		95.6	%		93.2	%		4.2	%		6.8	%		3.3	%		8.6	%
Woodway at Trinity Centre		504	5/17/2012	$	1,369		94.9	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C. Region		13,161		$	1,317		95.7	%		95.5	%		4.7	%		4.9	%		0.1	%		7.6	%		33.3	%

TOTAL OWNED PORTFOLIO		44,232		$	1,236		95.2	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		37,811		$	1,213		95.8	%		95.6	%		4.6	%		4.7	%		(1.6	%)		8.9	%

(1)	Reflects net change in base rental rates before utility reimbursements and economic occupancy changes.

(2)	For properties classified as Under Construction, see Development Pipeline schedule for occupancy information.

Page 12

Table of Contents

Physical Occupancy Comparison By Region - Core Properties

Sequential Comparison
Second Quarter 2012 vs. First Quarter 2012

Region	% Units			2Q '12			1Q '12			Variance

Baltimore		25.0	%		95.6	%		95.0	%		0.6	%
Washington, D.C.		24.7	%		96.0	%		95.3	%		0.7	%
New Jersey, Long Island		19.1	%		97.2	%		96.1	%		1.1	%
Philadelphia		14.8	%		95.3	%		95.3	%		0.0	%
Boston		7.9	%		96.3	%		95.8	%		0.5	%
Chicago		6.2	%		96.5	%		96.0	%		0.5	%
Florida		2.3	%		96.6	%		94.1	%		2.5	%

Total Core		100.0	%		96.2	%		95.5	%		0.7	%



Year over Year Comparison
Second Quarter 2012 vs. Second Quarter 2011

Region	% Units			2Q '12			2Q '11			Variance

Baltimore		25.0	%		95.6	%		95.1	%		0.5	%
Washington, D.C.		24.7	%		96.0	%		95.8	%		0.2	%
New Jersey, Long Island		19.1	%		97.2	%		96.7	%		0.5	%
Philadelphia		14.8	%		95.3	%		95.0	%		0.3	%
Boston		7.9	%		96.3	%		96.5	%		(0.2	%)
Chicago		6.2	%		96.5	%		96.2	%		0.3	%
Florida		2.3	%		96.6	%		96.2	%		0.4	%

Total Core		100.0	%		96.2	%		95.8	%		0.4	%



June vs. Quarter Comparison

Region	% Units			Jun '12			2Q '12			Variance

Baltimore		25.0	%		95.7	%		95.6	%		0.1	%
Washington, D.C.		24.7	%		96.1	%		96.0	%		0.1	%
New Jersey, Long Island		19.1	%		97.1	%		97.2	%		(0.1	%)
Philadelphia		14.8	%		94.8	%		95.3	%		(0.5	%)
Boston		7.9	%		95.9	%		96.3	%		(0.4	%)
Chicago		6.2	%		96.1	%		96.5	%		(0.4	%)
Florida		2.3	%		95.7	%		96.6	%		(0.9	%)

Total Core		100.0	%		96.1	%		96.2	%		(0.1	%)

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Net Operating Results - Core Properties

Sequential Results
Second Quarter 2012 vs. First Quarter 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI

Baltimore		25.0	%		1.4	%		(0.9	%)		(2.7	%)		0.1	%
Washington, D.C.		24.7	%		1.8	%		0.0	%		(3.0	%)		1.6	%
New Jersey, Long Island		19.1	%		2.2	%		(0.2	%)		(10.6	%)		7.1	%
Philadelphia		14.8	%		1.3	%		(2.5	%)		(7.0	%)		0.7	%
Boston		7.9	%		1.8	%		1.5	%		(14.8	%)		12.7	%
Chicago		6.2	%		1.6	%		0.4	%		7.1	%		(5.1	%)
Florida		2.3	%		4.8	%		4.0	%		(11.1	%)		22.5	%

Total Core		100.0	%		1.8	%		(0.4	%)		(6.1	%)		3.1	%


Year Over Year Results
Second Quarter 2012 vs. Second Quarter 2011
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI

Baltimore		25.0	%		4.4	%		4.2	%		(2.2	%)		7.7	%
Washington, D.C.		24.7	%		5.2	%		5.1	%		0.3	%		7.8	%
New Jersey, Long Island		19.1	%		5.0	%		4.7	%		(0.9	%)		8.3	%
Philadelphia		14.8	%		6.4	%		5.8	%		1.1	%		9.2	%
Boston		7.9	%		5.0	%		4.6	%		(0.6	%)		7.5	%
Chicago		6.2	%		4.3	%		5.4	%		4.9	%		5.8	%
Florida		2.3	%		2.3	%		2.1	%		(5.3	%)		9.7	%

Total Core		100.0	%		5.0	%		4.8	%		(0.3	%)		8.0	%

(1)	Reflects net change in base rental revenues before utility reimbursements and economic occupancy changes.

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Percentage Change in New Lease and Renewal Lease Rents Compared to

Expiring Lease Rents - Core Properties

	1Q '11						2Q '11						3Q '11						4Q '11						YTD '11
Region	New			Renewal			New			Renewal			New			Renewal			New			Renewal			New				Renewal
Baltimore		1.9	%		3.5	%		5.2	%		4.3	%		3.5	%		4.1	%		0.0	%		3.8	%		3.0	%	��		4.0	%

Boston		2.0	%		3.5	%		6.8	%		4.3	%		5.0	%		4.2	%		2.6	%		4.3	%		4.6	%			4.2	%

Chicago		3.7	%		4.0	%		5.0	%		4.6	%		4.3	%		5.0	%		1.1	%		4.8	%		3.9	%			4.8	%

Florida		(1.8	%)		1.5	%		1.9	%		2.4	%		(0.8	%)		3.5	%		(0.1	%)		3.7	%		(0.3	%)			2.9	%

New Jersey, Long Island		0.3	%		3.2	%		4.6	%		3.4	%		5.7	%		3.8	%		3.3	%		3.9	%		4.2	%			3.7	%

Philadelphia		4.0	%		3.4	%		9.9	%		5.1	%		7.6	%		4.8	%		4.2	%		3.5	%		7.2	%			4.3	%

Washington, D.C.		2.7	%		4.4	%		4.8	%		4.7	%		5.2	%		4.4	%		3.6	%		4.3	%		4.4	%			4.5	%

Total Core		1.9	%		3.6	%		5.7	%		4.3	%		5.1	%		4.2	%		2.5	%		4.0	%		4.3	%			4.1	%

Spread (1)		1.7%						(1.4%)						(0.9%)						1.5%						(0.2%)

	1Q '12						2Q '12
Region	New			Renewal			New			Renewal
Baltimore		0.1	%		3.6	%		1.9	%		3.4	%

Boston		3.8	%		4.1	%		6.6	%		3.6	%

Chicago		0.1	%		3.8	%		1.5	%		3.4	%

Florida		1.1	%		2.4	%		5.9	%		2.5	%

New Jersey, Long Island		1.9	%		4.0	%		4.0	%		3.3	%

Philadelphia		6.0	%		3.0	%		6.7	%		3.4	%

Washington, D.C.		1.3	%		4.1	%		3.4	%		3.9	%

Total Core		1.8	%		3.8	%		3.8	%		3.5	%

Spread (1)		2.0%						(0.3%)

(1)	Spread is the difference between the percentage change in rents on renewed leases compared to new leases.

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Resident Statistics

Top Six Reasons for Moveouts - Owned Communities
	2Q '12			1Q '12			4Q '11			3Q '11			2Q '11			1Q '11			Year '11			Year '10			Year '09

Location convenience/
apartment size		13.5	%		11.7	%		12.8	%		14.1	%		13.0	%		12.6	%		13.1	%		12.1	%		10.1	%

Employment related		13.4	%		12.6	%		12.3	%		12.9	%		13.6	%		15.0	%		13.4	%		13.9	%		15.7	%

Eviction/skip		12.8	%		16.9	%		16.2	%		14.4	%		14.8	%		20.4	%		16.4	%		15.6	%		14.0	%

Domestic situation		12.7	%		8.3	%		7.7	%		10.5	%		13.1	%		6.9	%		9.6	%		9.8	%		8.7	%

Transfer w/in HME		11.5	%		15.0	%		13.7	%		11.0	%		10.6	%		11.2	%		11.6	%		12.3	%		12.9	%

Home purchase		11.2	%		9.6	%		11.4	%		10.8	%		9.9	%		9.5	%		10.4	%		11.0	%		12.3	%


Traffic - Core													Turnover - Core
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	2Q '12			YTD '12			2Q '12			YTD '12
	vs.			vs.			vs.			vs.
	2Q '11			YTD '11			2Q '11			YTD '11			2Q '12			2Q '11			YTD '12			YTD '11

Region
Baltimore		(4.6	%)		(0.1	%)		(10.3	%)		1.0	%		9.9	%		9.5	%		18.0	%		17.0	%
Boston		(10.0	%)		(1.3	%)		(9.9	%)		(10.2	%)		11.4	%		11.2	%		18.1	%		18.0	%
Chicago		(10.3	%)		(5.8	%)		(5.9	%)		(0.2	%)		14.3	%		13.0	%		24.5	%		21.2	%
Florida		(20.3	%)		(4.1	%)		(20.3	%)		1.6	%		10.0	%		8.7	%		22.2	%		22.6	%
Long Island		(4.6	%)		(9.7	%)		(13.2	%)		(13.4	%)		8.5	%		8.2	%		15.3	%		15.0	%
New Jersey		(11.2	%)		(0.5	%)		(2.7	%)		(1.6	%)		9.3	%		9.2	%		17.4	%		16.9	%
Philadelphia		(10.2	%)		(7.3	%)		4.6	%		4.7	%		12.4	%		12.5	%		20.0	%		19.2	%
Washington, D.C.		(12.8	%)		(9.2	%)		0.3	%		8.7	%		8.8	%		8.9	%		16.8	%		15.8	%

Total Core		(9.4	%)		(4.9	%)		(4.9	%)		0.9	%		10.2	%		10.0	%		18.2	%		17.3	%



Bad Debt as % of Rent and Utility Recovery - Core

	2Q '12			2Q '11			YTD '12			YTD '11
		0.86	%		1.06	%		0.94	%		1.08	%

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Net Operating Income Detail

($ in thousands, except per unit data)

Core Properties
							Qtr			%									YTD			%
	2Q '12			2Q '11			Variance			Variance			YTD '12			YTD '11			Variance			Variance

Rent	$	131,685		$	125,379		$	6,306			5.0	%	$	261,057		$	248,476		$	12,581			5.1	%
Utility recovery		4,416			4,596			(180	)		(3.9	%)		11,336			12,484			(1,148	)		(9.2	%)
Rent including recoveries		136,101			129,975			6,126			4.7	%		272,393			260,960			11,433			4.4	%
Other income		6,329			5,897			432			7.3	%		13,029			11,552			1,477			12.8	%

Total income		142,430			135,872			6,558			4.8	%		285,422			272,512			12,910			4.7	%
Operating & maintenance		(51,596	)		(51,769	)		173			0.3	%		(106,524	)		(108,298	)		1,774			1.6	%

Core Properties NOI	$	90,834		$	84,103		$	6,731			8.0	%	$	178,898		$	164,214		$	14,684			8.9	%

Physical Occupancy %		96.2	%		95.8	%		0.4	%					95.8	%		95.6	%		0.2	%

Weighted Avg Rent per Unit	$	1,218		$	1,166		$	52			4.5	%	$	1,213		$	1,159		$	54			4.6	%

Acquired Properties (1)							Redevelopment Properties (2)
	2Q '12			YTD '12				2Q '12			YTD '12

Rent	$	12,504		$	23,367		Rent	$	2,985		$	5,835
Utility recovery		538			1,136		Utility recovery		119			241
Rent including recoveries		13,042			24,503		Rent including recoveries		3,104			6,076
Other income		507			898		Other income		143			308

Total income		13,549			25,401		Total income		3,247			6,384
Operating & maintenance		(4,813	)		(8,989	)	Operating & maintenance		(1,170	)		(2,371	)

Acquired Properties NOI	$	8,736		$	16,412		Developed Properties NOI	$	2,077		$	4,013

Physical Occupancy %		95.3	%		94.3	%	Physical Occupancy %		81.5	%		80.4	%

Weighted Avg Rent per Unit	$	1,360		$	1,366		Weighted Avg Rent per Unit	$	1,441		$	1,431

Development Properties (3)
	2Q '12			YTD '12

Rent	$	2,852		$	4,961
Utility recovery		38			62
Rent including recoveries		2,890			5,023
Other income		223			417

Total income		3,113			5,440
Operating & maintenance		(1,148	)		(2,115	)

Development Properties NOI	$	1,965		$	3,325

Physical Occupancy %	(see development pipeline schedule)

Weighted Avg Rent per Unit	$	1,741		$	1,812

(1)	Acquired Properties consists of properties acquired subsequent to January 1, 2011, such that full year operating results are not available.

(2)	Redevelopment Properties consists of one property, Arbor Park of Alexandria, where 851 units in fifty-two buildings are to be extensively renovated on a building by building basis.

(3)	Development Properties consists of two properties, Courts at Huntington Station where construction was completed in 2011 and is currently in Lease up; and The Apts at Cobblestone Square for which all apartment units are available to rent and substantial completion is expected in 3Q'12.

Seasonality Factor for NAV Calculation

To annualize net operating income in order to calculate a net asset value, the seasonality factor to apply to the current quarter's effective NOI run rate is 25.1%. This will adjust for the typical seasonal variability in NOI for each quarter.

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Operating Expense Detail - Core Properties

($ in thousands)

					Qtr			%							YTD			%
	2Q '12		2Q '11		Variance			Variance			YTD '12		YTD '11		Variance			Variance

Electricity	$	1,573	$	1,851	$	(278	)		(15.0	%)	$	3,589	$	3,950	$	(361	)		(9.1	%)

Gas		2,205		2,776		(571	)		(20.6	%)		8,092		10,405		(2,313	)		(22.2	%)

Water & sewer		4,196		4,095		101			2.5	%		8,521		8,316		205			2.5	%

Repairs & maintenance		8,436		8,609		(173	)		(2.0	%)		14,724		14,597		127			0.9	%

Personnel expense		12,434		12,278		156			1.3	%		24,716		25,081		(365	)		(1.5	%)

Advertising		1,141		1,110		31			2.8	%		2,233		2,216		17			0.8	%

Legal & professional		356		428		(72	)		(16.8	%)		1,002		823		179			21.7	%

Office & telephone		1,457		1,488		(31	)		(2.1	%)		3,278		2,975		303			10.2	%

Property insurance		1,529		1,080		449			41.6	%		3,774		2,885		889			30.8	%

Real estate taxes		13,548		13,124		424			3.2	%		26,829		25,911		918			3.5	%

Snow		7		23		(16	)		(69.6	%)		257		1,498		(1,241	)		(82.8	%)

Trash		789		784		5			0.6	%		1,585		1,559		26			1.7	%

Property management G & A		3,925		4,123		(198	)		(4.8	%)		7,924		8,082		(158	)		(2.0	%)

Total Core	$	51,596	$	51,769	$	(173	)		(0.3	%)	$	106,524	$	108,298	$	(1,774	)		(1.6	%)

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Summary Of Recent Acquisitions

($ in millions, except unit and per unit data)

											Wtd. Avg.
			Purchase	# of		CAP			Purchase		Price Per
Community	Market	State	Date	Units		Rate (1)			Price		Unit
2012 Acquisitions

The Manor East	Suburban D.C.	VA	5/11/2012		164		7.0	%	$	16.2	$	98,780
Woodway at Trinity Centre	Suburban D.C.	VA	5/17/2012		504		5.7	%		96.0		190,476
Howard Crossing	Baltimore	MD	6/28/2012		1,350		5.9	%		186.0		137,778
			Total 2012		2,018		5.9	%	$	298.2	$	147,770

2011 Acquisitions

Hunters Glen	Suburban D.C.	MD	4/19/2011		108		7.2	%	$	7.0	$	64,815
Waterview Apartments	Philadelphia	PA	7/14/2011		203		5.7	%		24.6		121,182
The Commons at Haynes Farm	Boston	MA	7/15/2011		302		5.9	%		40.5		134,106
The Apartments at Cambridge Court	Baltimore	MD	8/23/2011		544		5.4	%		90.4		166,176
Somerset Park	Suburban D.C.	VA	10/11/2011		108		5.2	%		20.3		187,500
Newport Village	Suburban D.C.	VA	10/17/2011		937		5.4	%		205.0		218,783
The Courts at Dulles	Suburban D.C.	VA	11/30/2011		411		5.2	%		92.8		225,669
The Gates of Deer Grove	Chicago	IL	12/15/2011		204		6.2	%		20.2		99,020
			Total 2011		2,817		5.5	%	$	500.7	$	177,742

			Total 2012 and 2011 Acquisitions		4,835		5.6	%	$	798.9	$	165,233

(1)	CAP rate based on projected NOI at the time of acquisition after an allowance for a 2.7% management fee but before capital expenditures.

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Table of Contents

Summary Of Recent Sales

($ in millions, except unit and per unit data)

Wtd. Avg.

Sale

# of

CAP

Sales

Price Per

Community

Market

State

Date

Units

Rate (1)

Price

Unit

2012 Sales

Total 2012

2011 Sales

Total 2011

Total 2012 and 2011 Sales

(1)	CAP rate based on projected NOI at the time of sale after an allowance for a 2.7% management fee but before capital expenditures.

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Table of Contents

Breakdown Of Owned Units By Market

				Net							Net
				Acquired/							Acquired/
		As of		Developed		As of		12/31/2011			Developed		As of		Current
Market	State	12/31/2010		in 2011		12/31/2011		% of Units			in 2012		6/30/2012		% of Units
Suburban Washington, D.C.	MD/VA		10,393		1,837		12,230		29.2	%		931		13,161		29.8	%
Baltimore	MD		9,440		544		9,984		23.8	%		1,350		11,334		25.6	%
Suburban New York City	NY/NJ		7,225		-		7,225		17.2	%		-		7,225		16.3	%
Philadelphia	PA		5,603		203		5,806		13.8	%		-		5,806		13.1	%
Boston	MA		3,002		302		3,304		7.9	%		-		3,304		7.5	%
Chicago	IL		2,362		204		2,566		6.1	%		-		2,566		5.8	%
Florida	FL		836		-		836		2.0	%		-		836		1.9	%

Total			38,861		3,090		41,951		100.0	%		2,281		44,232		100.0	%

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Debt Summary Schedule		INTEREST		06/30/12		MATURITY	YEARS TO
PROPERTY	LENDER	RATE		BALANCE		DATE	MATURITY

FIXED RATE SECURED

Liberty Place	CW Capital - Fannie Mae		5.710		5,630,796	11/01/12		0.34
Hackensack Gardens - 1st	JPMorgan Chase - Fannie Mae		5.260		4,228,070	03/01/13		0.67
Hackensack Gardens - 2nd	JPMorgan Chase - Fannie Mae		5.440		4,143,442	03/01/13		0.67
Barrington Gardens	Wachovia - Freddie Mac		4.960		10,700,616	04/01/13		0.75
Canterbury Apartments - 1st	M&T Realty-Fannie Mae		5.020		25,721,275	05/01/13		0.84
Canterbury Apartments - 2nd	M&T Realty-Fannie Mae		6.460		16,290,047	05/01/13		0.84
Multi-Property	Prudential - Fannie Mae		6.475		100,000,000	08/31/13		1.17
Saddle Brook Apts. - 1st	Wells Fargo - Fannie Mae		5.840		26,502,289	11/01/13		1.34
Saddle Brook Apts. - 2nd	Wells Fargo - Fannie Mae		6.290		3,115,537	11/01/13		1.34
Falkland Chase	Centerline (CIII) - Fannie Mae		5.480		10,321,621	04/01/14		1.75
The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.520		23,194,421	04/01/14		1.75
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.270		33,376,318	07/01/14		2.00
The Greens at Columbia	M&T Realty-Fannie Mae		3.930		9,415,830	08/01/14		2.09
Curren Terrace - 1st	M&T Realty - Freddie Mac		5.360		12,983,637	10/01/14		2.25
Curren Terrace - 2nd	M&T Realty - Freddie Mac		5.090		9,531,864	10/01/14		2.25
Westchester West - 1st	Berkeley Point Cap - Freddie		6.150		26,341,849	03/01/15		2.67
Westchester West - 2nd	Berkeley Point Cap - Freddie		6.640		7,334,998	03/01/15		2.67
Stratford Greens	Capital One Bank		5.750		30,124,015	07/01/15		3.00
Sayville Commons	M&T Realty - Freddie Mac		5.000		38,491,678	08/01/15		3.09	��
Charleston Place	Wells Fargo - Freddie Mac		3.770		32,359,083	09/01/15		3.17
Charleston Place	Wells Fargo - Freddie Mac		3.770		22,302,311	09/02/15		3.18
Charleston Place	Wells Fargo - Freddie Mac		3.770		19,464,734	09/03/15		3.18
Cypress Place Apartments	Prudential - Fannie Mae		6.555		9,998,363	11/01/15		3.34
Golf Club Apartments	Prudential - Fannie Mae		6.380		32,221,842	11/01/15		3.34
Northwood Apartments	M&T Realty - Freddie Mac		5.500		10,300,144	12/01/15		3.42
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.250		48,730,428	01/01/16		3.51
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.550		5,058,080	01/01/16		3.51
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.250		75,005,726	01/01/16		3.51
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.550		1,839,298	01/01/16		3.51
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.565		49,421,150	02/01/16		3.59
Devonshire - 1st	Wachovia - Fannie Mae		5.600		36,184,765	04/01/16		3.76
Devonshire - 2nd	Wachovia - Fannie Mae		6.235		8,181,917	04/01/16		3.76
Mid-Island	Prudential - Fannie Mae		5.480		19,007,390	04/01/16		3.76
Owings Run 1 & 2	Prudential - Fannie Mae		5.590		41,158,585	04/01/16		3.76
The Manor East	KeyBank - Freddie Mac		3.250		7,262,493	04/01/16		3.76
Country Village	Centerline (CIII) - Fannie Mae		5.520		18,158,911	06/01/16		3.92
Fox Hall Apartments	Columbia Nat'l - Freddie Mac		5.610		47,000,000	06/01/17		4.92
Mill Towne Village	Prudential - Fannie Mae		5.990		24,239,000	09/01/17		5.18
Royal Gardens Apts.	M&T Realty - Freddie Mac		5.830		47,000,000	11/01/17		5.34
Village Square 1, 2 & 3	Prudential - Fannie Mae		5.810		39,285,000	12/01/17		5.42
Chatham Hill	M&T Realty - Freddie Mac		5.590		43,500,074	01/01/18		5.51
William Henry Apartments	PNC - Fannie Mae		4.850		28,055,948	01/01/18		5.51
Seminary Towers Apartments	Prudential - Fannie Mae		5.485		53,515,000	07/01/18		6.01
The Manor (MD)	Prudential - Fannie Mae		4.230		45,478,911	11/01/18		6.34
Bonnie Ridge - 1st	Prudential Life		6.600		9,511,565	12/15/18		6.46
Bonnie Ridge - 2nd	Prudential Life		6.160		17,188,912	12/15/18		6.46
Bonnie Ridge - 3rd	Prudential Life		6.070		24,283,583	12/15/18		6.46
Annapolis Roads	Amerisphere - Fannie Mae		5.120		23,518,332	01/01/19		6.51
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.750		17,894,027	01/01/19		6.51
The Sycamores	M&T Realty - Freddie Mac		5.710		20,859,685	01/01/19		6.51
Top Field Apartments	M&T Realty - Fannie Mae		4.840		16,279,611	01/01/19		6.51
Westwood Village	M&T Realty - Freddie Mac		5.680		45,703,285	01/01/19		6.51
Timbercroft III - 2nd	M & T Realty - HUD		8.375		1,913,910	06/01/19		6.92
Timbercroft Townhomes 1 - 2nd	M & T Realty - HUD		8.375		1,299,400	06/01/19		6.92
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.470		12,074,996	07/01/19		7.01
Glen Manor	Prudential - Fannie Mae		5.830		7,770,415	08/01/19		7.09
Ridley Brook	Prudential - Fannie Mae		5.830		12,899,565	08/01/19		7.09
The Courts at Fair Oaks	CW Capital - Freddie Mac CME		4.500		48,650,436	08/01/19		7.09
Southern Meadows	Red Mortgage - Fannie Mae		5.360		39,966,470	10/01/19		7.26
Elmwood Terrace	M & T Realty - Fannie Mae		5.560		26,244,490	11/01/19		7.34
Lakeview	Greystone - Fannie Mae		5.310		8,908,583	12/01/19		7.42
The Landings	Prudential - Fannie Mae		5.600		25,666,607	01/01/20		7.51
East Meadow Apartments	M&T Realty - Freddie Mac		5.400		14,448,703	05/01/20		7.84
Selford Townhomes	M&T Realty - Freddie Mac		5.400		8,735,025	05/01/20		7.84
South Bay Manor	M&T Realty - Freddie Mac		5.400		6,624,061	05/01/20		7.84
Stone Ends Apts.	M&T Realty - Freddie Mac		5.400		24,603,655	05/01/20		7.84
Tamarron Apartments	M&T Realty - Freddie Mac		5.400		14,456,467	05/01/20		7.84
The Manor (VA)	M&T Realty - Freddie Mac		5.400		13,568,406	05/01/20		7.84
Woodmont Village	M&T Realty - Freddie Mac		5.400		9,790,022	05/01/20		7.84
Trexler Park	Greystone - Fannie Mae		4.340		37,746,074	08/01/20		8.09
Arbor Park of Alexandria	Prudential - Fannie Mae		4.350		95,165,350	11/01/20		8.35
New Orleans Park	M & T Realty - Fannie Mae		4.580		23,134,243	11/01/20		8.35
Racquet Club East	PNC - Fannie Mae		4.740		37,026,921	12/01/20		8.43
Heritage Woods Apts	Greystone - Fannie Mae		5.390		14,229,929	01/01/21		8.51
The Meadows at Marlborough	Prudential - Fannie Mae		5.500		20,784,399	01/01/21		8.51

Page 22

Table of Contents

Debt Summary Schedule			INTEREST		06/30/12		MATURITY	YEARS TO
PROPERTY		LENDER	RATE		BALANCE		DATE	MATURITY

FIXED RATE SECURED

Home Properties of Devon		M & T Realty - Fannie Mae		4.850		59,681,471	08/01/21		9.09
Pleasant View Gardens		Prudential - Fannie Mae		4.510		94,163,486	11/01/21		9.35
Dunfield Townhomes		Midland Mortgage - HUD		5.250		11,235,155	09/01/28		16.18
Highland House		Arbor Comml - Fannie Mae		6.320		5,646,117	01/01/29		16.52
Westwoods		Midland Loan Services - HUD		5.940		3,435,244	06/01/34		21.93

WTD AVG - FIXED SECURED				5.301		2,017,286,054			5.43

VARIABLE RATE SECURED
Virginia Village		Wachovia - Freddie Mac		2.075		28,690,947	07/01/15		3.00
Hill Brook Apts		M&T Realty - Freddie Mac		3.529		12,431,296	09/01/16		4.18
Wayne Village		M&T Realty - Freddie Mac		3.626		25,323,306	09/01/16		4.18
Cider Mill Apts		M&T Realty - Freddie Mac		3.409		60,822,825	01/01/17		4.51
The Heights at Marlborough		PNC Real Estate		3.609		22,888,275	01/01/17		4.51
Sherry Lake		M&T Realty - Freddie Mac		3.135		25,222,976	04/01/17		4.76
Falkland Chase		Montgomery Cty HOC-Fannie		1.268		24,695,000	10/01/30		18.27

WTD AVG - VARIABLE SECURED				2.977		200,074,626			5.96

WTD AVG - TOTAL SECURED DEBT				5.092		2,217,360,680			5.47

FIXED RATE UNSECURED
Private Placement Senior Notes - Series A		Various Investors		4.460		90,000,000	12/19/18		6.47
Private Placement Senior Notes - Series B		Various Investors		5.000		60,000,000	12/19/21		9.48
Senior Notes		Prudential Life Insurance		4.160		50,000,000	06/27/19		6.99

VARIABLE RATE UNSECURED
Bank Term Loan		M and T Bank et. al.		1.550		250,000,000	12/08/16		4.44
Bank Demand Loan		M and T Bank		1.550		100,000,000	Demand
Revolving Line of Credit		M and T Bank et. al.		1.550		175,000,000	12/08/15		3.44

WTD AVG - TOTAL UNSECURED DEBT				2.377		725,000,000			5.14

TOTAL COMBINED DEBT				4.423		2,942,360,680			5.40

% OF PORTFOLIO - FIXED	75.4%
% OF PORTFOLIO - VARIABLE	24.6%
WTG AVG - TOTAL FIXED RATE DEBT				5.233					5.61
WTD AVG - TOTAL VARIABLE RATE DEBT				1.944					4.65
WTG AVG - COMBINED DEBT				4.423					5.40

TOTAL DEBT MATURITY SCHEDULE Exclusive of Revolving Line of Credit
YEAR OF MATURITY	FIXED RATE				VARIABLE RATE				TOTAL
	WTD AVG				WTD AVG						% OF
	RATE		DEBT		RATE		DEBT		DEBT		TOTAL
2012		5.71		5,630,796		-		-		5,630,796		0.20	%
2013		6.05		190,701,276		-		-		190,701,276		6.89	%
2014		5.22		98,823,690		-		-		98,823,690		3.57	%
2015		5.17		228,939,018		2.08		28,690,947		257,629,966		9.31	%
2016		5.40		310,008,742		1.82		287,754,603		597,763,345		21.60	%
2017		5.78		157,524,000		3.39		108,934,076		266,458,076		9.63	%
2018		5.08		311,533,992		-		-		311,533,992		11.26	%
2019		5.18		333,983,204		-		-		333,983,204		12.07	%
2020		4.83		310,965,534		-		-		310,965,534		11.24	%
2021 - 2034		4.90		269,175,801		1.27		24,695,000		293,870,801		10.62	%
On Demand		-		-		1.55		100,000,000		100,000,000		3.61	%
TOTAL		5.233	$	2,217,286,054		2.0689	$	550,074,626	$	2,767,360,680		100.00	%

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Table of Contents

Unencumbered Properties

6/30/2012
Property		# Units		Market	State

Gateway Village			132	Baltimore	MD
Middlebrooke Apartments			208	Baltimore	MD
Morningside Heights			1,050	Baltimore	MD
The Coves at Chesapeake			469	Baltimore	MD
Westbrooke Apartments			110	Baltimore	MD
Cambridge Court			544	Baltimore	MD
Woodholme Manor	*		177	Baltimore	MD
Howard Crossing	*		1,350	Baltimore	MD
Gardencrest			696	Boston	MA
The Commons at Haynes Farm			302	Boston	MA
The Townhomes of Beverly			204	Boston	MA
The Village at Marshfield			276	Boston	MA
Blackhawk Apartments			371	Chicago	IL
Courtyards Village			224	Chicago	IL
Lakeview Townhomes			120	Chicago	IL
The Colony			783	Chicago	IL
The Gates of Deer Grove			204	Chicago	IL
The New Colonies			672	Chicago	IL
Bayview & Colonial			160	Long Island	NY
Cambridge Village			82	Long Island	NY
Crescent Club			257	Long Island	NY
Heritage Square			80	Long Island	NY
Holiday Square			144	Long Island	NY
Lake Grove Apartments			368	Long Island	NY
Yorkshire Village			40	Long Island	NY
Liberty Commons			120	Portland	ME
East Hill Gardens			33	Northern NJ	NJ
Jacob Ford Village			270	Northern NJ	NJ
Pleasure Bay			270	Northern NJ	NJ
Windsor Realty			67	Northern NJ	NJ
Castle Club			158	Philadelphia	PA
Chesterfield Apartments			247	Philadelphia	PA
Glen Brook			174	Philadelphia	PA
Racquet Club South			103	Philadelphia	PA
Waterview			203	Philadelphia	PA
1200 East West Highway			247	Suburban Washington, DC	MD
Hunter's Glen			108	Suburban Washington, DC	MD
Seminary Hill			296	Suburban Washington, DC	MD
The Courts at Huntington Station			421	Suburban Washington, DC	MD
Woodleaf Apartments			228	Suburban Washington, DC	MD
Braddock Lee			255	Suburban Washington, DC	VA
Mt. Vernon Square			1,387	Suburban Washington, DC	VA
Newport Village			937	Suburban Washington, DC	VA
Somerset Park			108	Suburban Washington, DC	VA
The Apts at Cobblestone Square			314	Suburban Washington, DC	VA
The Courts at Dulles			411	Suburban Washington, DC	VA
Village at Potomac Falls			247	Suburban Washington, DC	VA
Woodway at Trinity Centre	*		504	Suburban Washington, DC	VA

Total Number of Units:			16,131
Total Number of Properties:			48

*	Property added to unencumbered pool during quarter ending 6/30/2012.

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Table of Contents

Recurring Capital Expenditure Summary

Effective January 1, 2012, the Company updated its estimate of the amount of recurring, non-revenue enhancing capital expenditures incurred on an annual basis for a standard garden style apartment. The Company now estimates that the annual amount is $848 per apartment unit compared to $800 in the prior year. This new amount better reflects current actual costs and the effects of inflation since the last update.

The Company's policy is to capitalize costs related to the acquisition, development, rehabilitation, construction and improvement of properties. Capital improvements are costs that increase the value and extend the useful life of an asset. Ordinary repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred. Costs incurred on a lease turnover due to normal wear and tear by the resident are expensed on the turn. Recurring capital improvements typically include appliances, carpeting and flooring, HVAC equipment, kitchen and bath cabinets, new roofs, site improvements and various exterior building improvements. Non-recurring, revenue generating upgrades include, among other items community centers, new windows, and kitchen and bath apartment upgrades. Revenue generating capital improvements will directly result in increased rental earnings or expense savings. The Company capitalizes interest and certain internal personnel costs related to the communities under rehabilitation and construction.

The table below is a list of the items that management considers recurring, non-revenue enhancing capital and maintenance expenditures for a standard garden style apartment. Included are the per unit replacement cost and the useful life that Management estimates the Company incurs on an annual basis.

							Maintenance
					Capitalized		Expense		Total
	Capitalized				Expenditure		Cost Per		Cost Per
	Cost Per		Useful		Per Unit		Unit		Unit
Category	Unit		Life(1)		Per Year(2)		Per Year(3)		Per Year
Appliances	$	1,624		9	$	180	$	13	$	193
Blinds, shades		135		3		45		5		50
Carpets, cleaning		760		4		190		142		332
Computers, equipment, misc.(4)		120		6		20		2		22
Contract repairs		-		-		-		250		250
Exterior painting (5)		84		3		28		-		28
Flooring		250		9		28		24		52
Furnace, air (HVAC)		854		24		36		24		60
Hot water heater		293		7		42		-		42
Interior painting		-		-		-		178		178
Kitchen, bath cabinets upgrades		1,200		15		80		-		80
Landscaping site		-		-		-		120		120
New roof		880		24		37		-		37
Parking lot site		750		15		50		-		50
Pool, exercise facility		147		15		10		38		48
Windows major		1,663		20		83		-		83
Miscellaneous (6)		326		17		19		-		19
Total	$	9,086			$	848	$	796	$	1,644

(1)	Estimated weighted average actual physical useful life of the expenditure capitalized.

(2)	This amount is not necessarily incurred each and every year. Some years will be higher, or lower depending on the timing of certain longer life expenditures.

(3)

These expenses are included in the Operating and Maintenance line item of the Consolidated Statement of Operations. Maintenance labor costs are not included in the $796 per unit estimate. All personnel costs for site supervision, leasing agents, and maintenance staff are combined and disclosed in the Company's Core Properties expense detail schedule.

(4)	Includes computers, office equipment, furniture, and maintenance vehicles.

(5)	The level of exterior painting may be lower than other similarly titled presentations as the Company's portfolio has a significant amount of brick exteriors. In addition, the other exposed surfaces are most often covered in aluminum or vinyl.

(6)	Includes items such as balconies, siding, and concrete sidewalks.

The breakdown of costs above reflects the Company's unique strategies to improve every property every year regardless of age, and to purchase older properties and rehabilitate and reposition them to enhance internal rates of return. These strategies result in higher costs of capital expenditures and maintenance costs which permit the Company to realize higher revenue growth, higher net operating income growth and a higher rate of property appreciation.

Page 25

Table of Contents

Capital Expenditure Summary

The Company estimates that on an annual basis $848 per unit is spent on recurring capital expenditures in 2012. During the three months ended June 30, 2012 approximately $212 per unit was spent on recurring capital expenditures. For the six months ended June 30, 2012 approximately $424 per unit was spent on recurring capital expenditures. The table below summarizes the actual total capital improvements incurred by major categories and an estimate of the breakdown of total capital improvements by major categories between recurring, and non-recurring revenue generating capital improvements for the three and six months ended June 30, 2012 as follows:

For the three months ended June 30, 2012
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
New buildings	$	-	$	-	$	530	$	13	$	530	$	13
Major building improvements		1,333		33		6,167		150		7,500		183
Roof replacements		379		9		1,266		31		1,645		40
Site improvements		615		15		5,285		129		5,900		144
Apartment upgrades		1,282		31		12,075		295		13,357		326
Appliances		1,846		45		150		4		1,996		49
Carpeting/flooring		2,235		54		1,428		35		3,663		89
HVAC/mechanicals		800		20		2,850		69		3,650		89
Miscellaneous		205		5		1,109		27		1,314		32
Totals	$	8,695	$	212	$	30,860	$	753	$	39,555	$	965

(a)	Calculated using the weighted average number of units owned, including 37,811 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 390 for the three months ended June 30, 2012.

For the six months ended June 30, 2012
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
New Buildings	$	-	$	-	$	701	$	17	$	701	$	17
Major building improvements		2,653		65		7,979		195		10,632		260
Roof replacements		755		18		1,329		33		2,084		51
Site improvements		1,225		30		7,163		175		8,388		205
Apartment upgrades		2,551		63		22,499		551		25,050		614
Appliances		3,674		90		218		5		3,892		95
Carpeting/flooring		4,450		109		2,545		62		6,995		171
HVAC/mechanicals		1,592		39		5,217		128		6,809		167
Miscellaneous		408		10		2,180		53		2,588		63
Totals	$	17,308	$	424	$	49,831	$	1,219	$	67,139	$	1,643

(a)	Calculated using the weighted average number of units owned, including 37,811 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 195 for the six months ended June 30, 2012.

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Table of Contents

Capital Expenditure Summary (continued)

The schedule below summarizes the breakdown of total capital improvements between core and non-core as follows:

For the three months ended June 30, 2012
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	8,015	$	212	$	27,317	$	722	$	35,332	$	934
2012 Acquisition Communities		38		212		-		-		38		212
2011 Acquisition Communities		642		212		3,543		1,258		4,185		1,470
Sub-total		8,695		212		30,860		753		39,555		965
Corporate office expenditures (b)		-		-		-		-		761		-
	$	8,695	$	212	$	30,860	$	753	$	40,316	$	965

(a)	Calculated using the weighted average number of units owned, including 37,811 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 390 for the three months ended June 30, 2012.

(b)	No distinction is made between recurring and non-recurring expenditures for corporate office. Corporate office expenditures includes principally computer hardware, software, office furniture, fixtures and leasehold improvements. Corporate office expenditures are excluded from per unit figures.

For the six months ended June 30, 2012
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	16,031	$	424	$	43,515	$	1,151	$	59,546	$	1,575
2012 Acquisition Communities		38		424		-		-		38		424
2011 Acquisition Communities		1,239		424		6,316		2,242		7,555		2,666
Sub-total		17,308		424		49,831		1,219		67,139		1,643
Corporate office expenditures (b)		-		-		-		-		1,559		-
	$	17,308	$	424	$	49,831	$	1,219	$	68,698	$	1,643

(a)	Calculated using the weighted average number of units owned, including 37,811 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 195 for the six months ended June 30, 2012.

(b)	No distinction is made between recurring and non-recurring expenditures for corporate office. Corporate office expenditures includes principally computer hardware, software, office furniture, fixtures and leasehold improvements. Corporate office expenditures are excluded from per unit figures.

Adjusted Net Operating Income - Core Properties
($ in thousands)
	Quarter			Quarter
	6/30/2012			6/30/2011		Change

Net Operating Income	$	90,834		$	84,103		8.0	%

Less: Non Recurring Cap Ex @ 6%		(1,639	)		-		-

Adjusted Net Operating Income	$	89,195		$	84,103		6.1	%

Some of our Core Property NOI reflects incremental investments in the communities above and beyond normal capital replacements. After charging ourselves a 6% cost of debt capital on these additional expenditures, what we refer to as the adjusted NOI for the quarter is recalculated and presented above.

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Table of Contents

Development Pipeline as of June 30, 2012

($ in thousands)

# of

Estimated

Costs

Con-

Physical

Property

Units at

Estimated

Costs

Incurred

struction

Initial

struction

Complete

Leased

Occupancy

Type

Completion

Costs

Per Unit

(1)

Start

Occupancy

Completion

(2)

(3)

Under construction:

The Apartments at

Cobblestone Square (5)

Garden

314

49,100

156.4

46,781

1Q 11

4Q 11

2Q 12

100.0

88.2

83.1

Fredericksburg, VA

Eleven55 Ripley

High Rise

379

111,200

293.4

39,142

4Q 11

3Q 13

1Q 14

0.0

n/a

Silver Spring, MD

Courts at Spring Mill

Station

Donut/

Podium

385

89,000

231.2

14,368

2Q 12

4Q 13

2H 14

0.0

n/a

Conshohocken, PA

Pre-construction:

Falkland North (6)

High Rise

tbd

4,735

tbd

n/a

Silver Spring, MD

Under contract:

Westpark Tysons

(part of Arbor Row final

development plan) (6)

Mid Rise/

High Rise

600

205,000

tbd

691

1H 14

tbd

n/a

Tysons Corner, VA

Total

105,717

(1)	Costs classified as Construction in Progress at June 30, 2012 are comprised of:

Courts at Spring Mill Station	$	14,368
Eleven55 Ripley		39,142
The Apartments at Cobblestone Square		24,354
	$	77,864

(2)	Represents the percentage of units that have been completed and are available to rent as of August 1, 2012.

(3)	Represents the percentage of units that have been leased as of August 1, 2012.

(4)	Represents the percentage of units occupied as of August 1, 2012.

(5)	Final Certificates of Occupancy were received in 2Q'12 with all units available for rent; however, costs are still coming in after 6/30/12. All assets have not yet been transferred out of CIP due to ongoing construction costs through substantial completion which is expected in 3Q'12.

(6)	Costs incurred are classified as Other Assets at June 30, 2012 for these projects.

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2012 Earnings Guidance	Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year

2012 compared to 2011
FFO per share - 2012 guidance	$	0.979		$	0.955		$	1.03 - $1.07		$	1.00 - $1.04		$	3.96 - $4.04

Actual/Midpoint of guidance	$	0.979		$	0.955		$	1.05		$	1.02		$	4.00

FFO per share - 2011 actual	$	0.865		$	0.867		$	0.866		$	0.934		$	3.539

Improvement projected		13.2	%		10.1	%		21.3	%		9.2	%		13.0	%


2012 compared to 2011 based on "Operating FFO"
FFO per share - 2012 Operating FFO	$	0.979		$	1.000		$	1.03 - $1.07		$	1.00 - $1.04		$	4.01 - $4.09

Midpoint of guidance	$	0.979		$	1.000		$	1.05		$	1.02		$	4.05

Operating FFO per share - 2011 actual	$	0.865		$	0.869		$	0.896		$	0.959		$	3.599

Improvement projected		13.2	%		15.1	%		17.2	%		6.3	%		12.5	%

Difference between FFO and OFFO is expensed acquisition costs


Same store assumptions:
Same store total revenue growth		4.6	%		4.8	%		4.0% - 4.75	%		4.0% - 4.75	%		4.25% - 5.0	%

Same store expense growth		-2.8	%		-0.3	%		1.5% - 2.0	%		4.0% - 4.5	%		0.5% - 1.0	%

Same store NOI growth		9.9	%		8.0	%		5.75% - 6.25	%		4.0% - 4.6	%		6.5% - 7.5	%

The midpoint of revenue growth is now 4.6% versus 4.5% previously provided.

The midpoint of expense growth is now 0.75% versus 2.5% previously provided.

The midpoint of NOI growth is now 7.0% versus 6.0% previously provided.

Occupancy assumptions:
Same store 2012 physical occupancy	95.5	%	96.2	%	95.9	%	95.6	%	95.8	%

Same store 2011 physical occupancy	95.3	%	95.8	%	95.5	%	95.3	%	95.5	%

Change in occupancy	0.2	%	0.4	%	0.4	%	0.3	%	0.3	%

The occupancy projected for 2012 is now 95.8% versus 95.5% previously provided.

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2012 Earnings Guidance

General & Administrative costs are expected to range between $31.9 million and $32.5 million. The first two quarters included normal equity grants, pushing the dollar amount up higher in comparison to the year as a whole. The first quarter expense was $8.3 million, the second quarter expense was $11.0 million, and the last two quarters settle back down to a range of $6.2 million to $6.6 million, only slightly higher than last guidance given for second half of year.

Interest Expense is projected to be $127.9 million to $128.5 million for the year.

Actual

First

Second

Third

Fourth

Year

Quarter

Development NOI 2012 projected run rate

1,360

1,965

2,250

2,600

8,175

(This represents two properties still under construction or lease-up in 2012, Courts at Huntington Station and Cobblestone Square)

Acquisition range of $300 million to $400 million. Midpoint of range now $350 million versus $250 million previously provided.

Expense from acquisition costs for 2012 of $3.1 million versus $1.6 million previously provided.

Disposition range of $250 million to $300 million. Midpoint of range now $275 million versus $100 million previously provided.

Development spend of $90 million.

Unchanged from original guidance

Capital expenditures:

Recurring

$34 million

Unchanged from original guidance

Upgrading and repositioning

$100 million

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