Home Properties 8-K Results of Operations and Financial Condition

EXHIBIT 99

HOME PROPERTIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

FOURTH QUARTER 2012

TABLE OF CONTENTS

	4Q 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.	Discontinued Operations	19
10.	Summary of Recent Acquisitions	20
11.	Summary of Recent Sales	21
12.	Breakdown of Owned Units by Region	22
13.	Debt Summary Schedule	23-25
14.	Recurring Capital Expenditure and Adjusted NOI Summary	26-28
15.	Development Communities	29
16.	2013 Earnings Guidance	30-31

Home Properties Reports Fourth Quarter and Full Year 2012 Results

FFO Per Share Exceeds Wall Street's Mean Estimate by 4 Cents

ROCHESTER, N.Y., February 7, 2013 – Home Properties, Inc. (NYSE: HME) today released financial results for the fourth quarter ended December 31, 2012.  All results are reported on a diluted basis.

“Home Properties’ earnings growth in 2012 was the highest in the Company’s history, despite the weak macroeconomic environment,” said Edward J. Pettinella, Home Properties President and CEO. “Apartment sector fundamentals, results from property operations, and the acquisition environment were strong – all contributing factors to our outperformance in 2012.”

Earnings per share ("EPS") for the quarter ended December 31, 2012 was $1.34, compared to $0.29 for the quarter ended December 31, 2011.  The $1.05 increase in EPS is primarily attributable to a $60.9 million gain on disposition of property combined with an $8.6 million increase in income from continuing operations.  EPS for the year ended December 31, 2012 was $2.69, compared to $0.89 for the year ended December 31, 2011.  The $1.80 increase in EPS is primarily attributable to an $80.5 million gain on disposition of property combined with a $37.2 million increase in income from continuing operations.  Increased income from continuing operations is attributed to the results of both 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 December 31, 2012, Funds From Operations ("FFO") was $68.3 million, or $1.09 per share, compared to $55.6 million, or $0.93 per share, for the quarter ended December 31 2011, which equates to a 17.1% increase on a per-share basis.  Operating FFO per share for the 2012 fourth quarter, which excludes acquisition costs, also was $1.09.  Fourth quarter 2012 FFO per share was $0.05 above the midpoint of the guidance range provided by management and $0.04 above the analysts' mean estimate, as reported by Thomson.  FFO per share for the year ended December 31, 2012 was $4.13, compared to $3.54 in the year-ago period, a 16.6% increase.  Operating FFO per share for 2012 was $4.17, a 15.9% increase from Operating FFO per share of $3.60 in 2011 and a record high for annual growth since the Company went public in 1994.  A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

Fourth Quarter Operating Results

For the fourth quarter of 2012, same-property comparisons (for 107 Core properties containing 36,214 apartment units owned since January 1, 2011) reflected an increase in rental income of 4.0% and a 4.3% increase in total revenues compared to the same quarter a year ago.  Net operating income (“NOI”) increased by 6.4% from the fourth quarter of 2011.  Property level operating expenses increased by 0.7% compared to the prior year quarter, primarily due to

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 2 of 8

increases in water & sewer, personnel costs and property insurance, which were partially offset by decreases in repairs and maintenance and real estate taxes.

Average physical occupancy for the Core properties was 95.5% during the fourth quarter of 2012, up from 95.2% during the fourth quarter 2011. Average monthly rental rates of $1,257 in the 2012 fourth quarter represent a 3.6% increase compared to the year-ago period.

On a sequential basis, compared to the 2012 third quarter results for Core properties, rental income (excluding utility recovery) was up 0.7% in the fourth quarter of 2012, total revenues increased 1.3%, expenses were up 2.2% and NOI increased 0.9%.  Average physical occupancy remained unchanged at 95.5% quarter over quarter.

Physical occupancy for the 6,421 Non-Core apartment units averaged 91.2% during the fourth quarter of 2012, at average monthly rents of $1,384.

On October 29, 2012, Hurricane Sandy hit the Mid-Atlantic and Northeast regions of the United States causing wide-spread flooding and wind damage.  Numerous communities owned by the Company were directly affected by this storm.  The most severe damage occurred at properties in New Jersey and on Long Island.  Property losses, estimated to be $2.2 million, are covered under various property and flood insurance policies.  The Company’s estimated net expense included in the fourth quarter results, after insurance reimbursement, is less than $0.1 million.

Full Year Operating Results

For the year ended December 31, 2012, same-property comparisons for the Core properties reflected an increase in total revenues of 4.5% and a decrease in total expense of 1.1% resulting in an 8.1% increase in NOI compared to 2011.  Property level operating expenses in 2012 decreased, primarily due to lower electricity, natural gas heating costs, repairs & maintenance, personnel 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 95.6% during 2012, up from 95.5% a year ago, with average monthly rental rates of $1,239, an increase of 4.2% over the prior year period.

Acquisitions/Dispositions

There were no acquisitions of apartment communities in the fourth quarter of 2012.

During 2012, the Company acquired three communities with a total of 2,018 units for a combined purchase price of $298.2 million.

During the fourth quarter of 2012, the Company completed four separate sale transactions, totaling 1,172 units, for $118.5 million, producing approximately $82.7 million in net proceeds after closing costs. A gain on sale of approximately $60.9 million was recorded in the fourth quarter related to these sales. The four apartment communities sold were located in the Philadelphia and Baltimore regions.  During 2012, the Company closed on six separate sale transactions, with a total of 1,596 units, for a total of $159.6 million.

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 3 of 8

Capital Markets Activities

As of December 31, 2012, the Company’s ratio of debt-to-total market capitalization was 42.2% (based on a December 31, 2012 stock price of $61.31 used to determine equity value), with $162.5 million outstanding on its $275 million revolving credit facility and $21.1 million of unrestricted cash on hand.  Total debt of $2.8 billion was outstanding, at interest rates averaging 4.5% and with staggered maturities averaging five years.  Approximately 87% of total indebtedness was at fixed rates.  Interest coverage for the quarter was 3.1 times and the fixed charge ratio was 3.0 times.  For the full year, interest coverage was 3.0 times and the fixed charge ratio was 2.9 times.

During the fourth quarter, the Company did not issue any new shares through its At-The-Market (ATM) equity offering program. Year to date, the Company issued 2,366,717 shares at an average price of $62.47 generating gross proceeds of $147.8 million and net proceeds of $144.8 million. There are approximately 2.4 million common shares remaining under this program.

During the fourth quarter, the Company repaid a $100 million unsecured bank demand loan from property disposition proceeds.

Outlook

For 2013, the Company expects FFO between $4.28 and $4.44 per share, which will produce FFO per share growth of 3.8% to 7.6% when compared to 2012 results.  “FFO growth in 2013 is muted by the timing effect of property dispositions, which are expected to occur earlier in the year than acquisitions,” said David P. Gardner, Executive Vice President and Chief Financial Officer.  “Sale proceeds will be used to reduce short-term, low-interest rate debt without the offsetting benefit of reinvestment in properties until later in the year.”

The guidance range on FFO per share results for the first quarter of 2013 is $1.01 to $1.05.  This guidance range reflects management’s current assessment of economic and market conditions. The assumptions for the 2013 projections are included with the published supplemental information.

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.

Fourth Quarter 2012 Earnings Conference Call and Webcast

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).

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 4 of 8

First Quarter 2013 Earnings Release and Conference Call

The Company’s first quarter 2013 financial results are scheduled to be released after the stock market closes on Thursday, May 2, 2013.  A conference call, which will be simultaneously webcast, is scheduled for Friday, May 3, 2013 at 11:00 AM ET and will be accessible following the instructions above for the current quarter's conference call.

First Quarter 2013 Conference/Event Schedule

Home Properties’ President and CEO, Edward J. Pettinella, is scheduled to participate in the Wells Fargo Securities’ 16th Annual Real Estate Securities Conference in New York City on February 26 and 27, 2013, and in Barclays Select Series: 2013 Housing Symposium in New York City on February 27, 2013.  In addition, he will participate in a roundtable presentation and question and answer session during Citi’s 18th Annual Global Property CEO Conference in Hollywood, Florida to be held from March 3-6, 2013.  Any 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 121 communities containing 42,635 apartment units.  For more information, visit Home Properties’ website at www.homeproperties.com.

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 5 of 8

HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
Fourth Quarter Results:	Occupancy(a)							4Q 2012	4Q 2012 vs. 4Q 2011 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
		4Q 2012			4Q 2011		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.5	%		95.2	%	$	1,257		3.6	%		4.3	%		0.7	%		6.4	%
Non-Core Properties(c)		91.2	%	NA			$	1,384	NA			NA			NA			NA
TOTAL PORTFOLIO		94.7	%	NA			$	1,276	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)		95.6	%		95.5	%	$	1,239		4.2	%		4.5	%		(1.1	%)		8.1	%
Non-Core Properties(c)		90.6	%	NA			$	1,395	NA			NA			NA			NA
TOTAL PORTFOLIO		94.9	%	NA			$	1,259	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 107 properties with 36,214 apartment units owned throughout 2011 and 2012.

(c) Non-Core Properties consist of 14 properties with 6,421 apartment units acquired, developed, or redeveloped subsequent to January 1, 2011, such that full year comparable operating results are not available.

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 6 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2012			2011			2012			2011
Rental income	$	153,166		$	136,982		$	591,933		$	515,780
Property other income		13,245			11,552			52,105			45,621
Other income		248			60			310			155
Total revenues		166,659			148,594			644,348			561,556
Operating and maintenance		59,967			55,369			235,040			217,069
General and administrative		6,807			6,280			34,174			29,145
Interest		32,055			31,255			125,809			127,618
Depreciation and amortization		43,234			38,239			165,642			140,713
Other expenses		15			1,486			2,741			3,225
Total expenses		142,078			132,629			563,406			517,770
Income from continuing operations		24,581			15,965			80,942			43,786
Discontinued operations
Income (loss) from discontinued operations		(1,403	)		1,072			2,148			3,878
Gain on disposition of property		60,865			-			80,532			-
Discontinued operations		59,462			1,072			82,680			3,878
Net income		84,043			17,037			163,622			47,664
Net income attributable to noncontrolling interest		(14,269	)		(3,108	)		(28,320	)		(9,808	)
Net income attributable to common stockholders	$	69,774		$	13,929		$	135,302		$	37,856
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income available to common stockholders	$	69,774		$	13,929		$	135,302		$	37,856
Real property depreciation and amortization		42,970			38,566			166,411			142,059
Noncontrolling interest		14,269			3,108			28,320			9,808
Gain on disposition of property		(60,865	)		-			(80,532	)		-
FFO - basic and diluted, as defined by NAREIT		66,148			55,603			249,501			189,723
Loss from early extinguishment of debt in connection with sale of real estate		2,157			-			2,157			-
FFO - basic and diluted (1)	$	68,305		$	55,603		$	251,658		$	189,723

(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 added back debt extinguishment costs which were incurred as a result of repaying property specific debt triggered upon sale as a gain or loss on sale of the property.  Because of the limitations of the FFO definition as published by NAREIT as set forth above, the Company has made certain interpretations in applying the definition.  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.

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 7 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2012			2011			2012			2011
FFO – basic and diluted	$	68,305		$	55,603		$	251,658		$	189,723
FFO – basic and diluted	$	68,305		$	55,603		$	251,658		$	189,723
Acquisition costs of closed deals included in other expenses		15			1,486			2,741			3,225
Operating FFO (2)	$	68,320		$	57,089		$	254,399		$	192,948
FFO – basic and diluted	$	68,305		$	55,603		$	251,658		$	189,723
Recurring non-revenue generating capital expenses		(9,163	)		(8,265	)		(36,457	)		(31,822	)
Addback of non-cash interest expense		-			142			-			1,781
AFFO (3)	$	59,142		$	47,480		$	215,201		$	159,682
Operating FFO	$	68,320		$	57,089		$	254,399		$	192,948
Recurring non-revenue generating capital expenses		(9,163	)		(8,265	)		(36,457	)		(31,822	)
Addback of non-cash interest expense		-			142			-			1,781
Operating AFFO (2) (3)	$	59,157		$	48,966		$	217,942		$	162,907
Weighted average shares/units outstanding:
Shares – basic		51,314.0			48,135.8			49,744.6			41,860.1
Shares – diluted		51,920.1			48,745.7			50,382.6			42,545.1
Shares/units – basic (4)		61,829.4			58,904.2			60,364.7			52,927.0
Shares/units – diluted (4)		62,435.6			59,514.1			61,002.7			53,611.9
Per share/unit:
Net income – basic	$	1.36		$	0.29		$	2.72		$	0.90
Net income – diluted	$	1.34		$	0.29		$	2.69		$	0.89
FFO – basic	$	1.10		$	0.94		$	4.17		$	3.58
FFO – diluted	$	1.09		$	0.93		$	4.13		$	3.54
Operating FFO (2)	$	1.09		$	0.96		$	4.17		$	3.60
AFFO (3)	$	0.95		$	0.80		$	3.53		$	2.98
Operating AFFO (2) (3)	$	0.95		$	0.82		$	3.57		$	3.04
Common Dividend paid	$	0.66		$	0.62		$	2.64		$	2.48

(2) Operating FFO is defined as FFO adjusted for the addback of acquisition costs on closed deals.

(3) Adjusted Funds From Operations ("AFFO") is defined as 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.

Home Properties Reports Fourth Quarter and Full Year 2012 Results

For Immediate Release:  February 7, 2013

Page 8 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	December 31, 2012			December 31, 2011
Land	$	791,604		$	721,542
Construction in progress		83,241			64,201
Buildings, improvements and equipment		4,580,381			4,256,581
		5,455,226			5,042,324
Accumulated depreciation		(1,108,840	)		(983,759	)
Real estate, net		4,346,386			4,058,565
Cash and cash equivalents		21,092			8,297
Cash in escrows		26,971			32,604
Accounts receivable		13,406			12,142
Prepaid expenses		19,504			15,994
Deferred charges		13,429			16,322
Other assets		10,704			9,282
Total assets	$	4,451,492		$	4,153,206
Mortgage notes payable	$	2,165,027		$	2,260,836
Unsecured notes payable		450,000			400,000
Unsecured line of credit		162,500			2,500
Accounts payable		22,691			20,953
Accrued interest payable		9,974			10,286
Accrued expenses and other liabilities		33,887			29,474
Security deposits		19,146			19,513
Total liabilities		2,863,225			2,743,562
Common stockholders’ equity		1,320,968			1,153,668
Noncontrolling interest		267,299			255,976
Total equity		1,588,267			1,409,644
Total liabilities and equity	$	4,451,492		$	4,153,206
Total shares/units outstanding:
Common stock		51,508.1			48,321.3
Operating partnership units		10,455.6			10,739.8
		61,963.7			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

###

Owned Community Results
Fourth Quarter 2012												4Q '12 versus 4Q '11
												% Growth
	# of		Date	4Q '12		4Q '12			4Q '11			Rental			Total			Total			Total			4Q '12
Region	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI (2)
Baltimore
Annapolis Roads		282	6/17/2010	$	1,302		89.8	%		87.4	%		2.7	%		14.6	%		2.6	%		23.0	%
Bonnie Ridge		960	7/1/1999	$	1,157		94.7	%		96.6	%		3.4	%		3.6	%		6.9	%		2.2	%
Canterbury		618	7/15/1999	$	1,022		93.3	%		95.2	%		3.1	%		0.2	%		(9.4	%)		5.9	%
Charleston Place		858	9/30/2010	$	1,202		96.0	%		96.0	%		4.3	%		6.0	%		4.1	%		6.8	%
Country Village		344	4/30/1998	$	1,065		92.9	%		96.2	%		4.0	%		1.0	%		11.4	%		(4.3	%)
Dunfield		312	11/1/2007	$	1,218		95.8	%		97.1	%		3.9	%		2.2	%		3.2	%		1.8	%
Fox Hall		720	3/28/2007	$	903		91.6	%		92.5	%		2.2	%		1.8	%		3.3	%		0.8	%
Gateway Village		132	7/15/1999	$	1,375		96.2	%		95.5	%		0.5	%		3.5	%		2.2	%		4.1	%
Heritage Woods		164	10/4/2006	$	1,186		94.8	%		96.2	%		(0.2	%)		(0.4	%)		1.7	%		(1.3	%)
Howard Crossing		1,350	6/28/2012	$	1,129		89.9	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke		208	4/1/2010	$	996		95.9	%		94.0	%		2.0	%		6.6	%		3.4	%		8.4	%
Mill Towne Village		384	5/31/2001	$	935		96.2	%		93.9	%		2.2	%		6.0	%		9.0	%		4.3	%
Morningside Heights		1,050	4/30/1998	$	944		92.5	%		91.2	%		3.0	%		3.9	%		3.1	%		4.3	%
Owings Run		504	7/15/1999	$	1,286		94.6	%		94.2	%		2.1	%		4.4	%		0.3	%		6.3	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,231		94.8	%		94.3	%		1.0	%		1.1	%		8.2	%		(2.6	%)
Saddle Brooke		468	10/29/2008	$	1,127		93.0	%		91.9	%		5.7	%		7.9	%		5.0	%		9.4	%
Selford		102	7/15/1999	$	1,429		96.8	%		93.5	%		3.2	%		8.2	%		(2.2	%)		13.3	%
The Apts at Cambridge Court		544	8/23/2011	$	1,381		92.5	%		92.0	%		5.0	%		5.5	%		9.4	%		3.5	%
The Coves at Chesapeake		469	11/20/2006	$	1,311		94.6	%		93.2	%		4.7	%		5.9	%		4.5	%		6.6	%
The Greens at Columbia		168	7/29/2010	$	1,451		95.5	%		96.0	%		4.7	%		3.6	%		12.4	%		0.2	%
Top Field		156	10/4/2006	$	1,319		95.9	%		95.4	%		1.1	%		1.6	%		3.2	%		0.9	%
Village Square		370	7/15/1999	$	1,203		94.4	%		94.3	%		1.2	%		3.5	%		12.0	%		(0.3	%)
Westbrooke		110	4/1/2010	$	881		95.1	%		95.9	%		3.8	%		3.3	%		1.1	%		5.1	%
Total Baltimore		10,477		$	1,124		94.2	%		94.2	%		3.1	%		4.2	%		3.8	%		4.4	%		22.4	%
Boston
Gardencrest		695	6/28/2002	$	1,664		96.1	%		96.3	%		4.8	%		5.3	%		(7.0	%)		11.7	%
Highland House		172	5/31/2006	$	1,266		95.2	%		96.0	%		6.0	%		7.1	%		4.2	%		9.2	%
Liberty Commons		120	8/30/2006	$	1,333		94.2	%		97.1	%		2.8	%		(0.4	%)		27.4	%		(10.8	%)
Liberty Place		107	6/6/2006	$	1,532		94.6	%		96.5	%		4.5	%		1.3	%		3.4	%		0.1	%
Redbank Village		500	7/8/1998	$	952		96.6	%		96.0	%		2.2	%		4.0	%		4.0	%		4.0	%
Stone Ends		280	2/12/2003	$	1,324		96.4	%		95.0	%		3.5	%		6.7	%		12.6	%		3.9	%
The Commons at Haynes Farm		302	7/15/2011	$	1,322		96.6	%		93.5	%		4.8	%		9.7	%		(6.5	%)		19.1	%
The Heights at Marlborough		348	9/7/2006	$	1,280		94.1	%		93.4	%		7.1	%		6.6	%		9.6	%		4.6	%
The Meadows at Marlborough		264	9/7/2006	$	1,231		96.3	%		93.3	%		4.1	%		7.3	%		9.9	%		5.4	%
The Townhomes of Beverly		204	2/15/2007	$	1,577		95.6	%		95.1	%		3.9	%		7.0	%		0.4	%		10.7	%
The Village at Marshfield		276	3/17/2004	$	1,227		95.6	%		94.1	%		3.9	%		6.0	%		(2.6	%)		11.3	%
Westwoods		35	4/30/2007	$	1,337		96.0	%		98.0	%		6.3	%		5.7	%		6.2	%		5.3	%
Total Boston		3,303		$	1,340		95.7	%		95.3	%		4.4	%		5.5	%		2.8	%		7.0	%		8.0	%
Chicago
Blackhawk		371	10/20/2000	$	905		94.0	%		94.1	%		1.9	%		(0.3	%)		(6.8	%)		6.7	%
Courtyards Village		224	8/29/2001	$	902		97.1	%		99.1	%		4.1	%		3.0	%		1.0	%		4.7	%
Cypress Place		192	12/27/2000	$	1,026		96.9	%		96.9	%		5.5	%		6.9	%		2.0	%		10.5	%
Lakeview Townhomes		120	10/18/2010	$	1,253		89.4	%		95.7	%		6.5	%		0.6	%		(1.3	%)		2.0	%
The Colony		783	9/1/1999	$	909		95.7	%		97.2	%		3.3	%		3.6	%		(20.6	%)		23.6	%
The Gates of Deer Grove		204	12/15/2011	$	1,034		96.7	%		n/a			n/a			n/a			n/a			n/a
The New Colonies		672	6/23/1998	$	774		95.4	%		96.0	%		0.7	%		1.3	%		5.8	%		(2.0	%)
Total Chicago		2,566		$	896		95.1	%		96.4	%		2.9	%		2.4	%		(6.5	%)		9.8	%		4.0	%
Florida
The Hamptons		668	7/7/2004	$	1,024		94.0	%		94.6	%		3.7	%		5.1	%		(4.1	%)		14.5	%
Vinings at Hampton Village		168	7/7/2004	$	1,140		96.6	%		94.8	%		2.6	%		3.3	%		(1.1	%)		7.5	%
Total Florida		836		$	1,047		94.6	%		94.7	%		3.4	%		4.7	%		(3.5	%)		12.9	%		1.3	%
Long Island, NY
Bayview / Colonial		160	11/1/2000	$	1,331		98.7	%		96.7	%		3.1	%		8.1	%		(0.0	%)		14.5	%
Cambridge Village		82	3/1/2002	$	1,901		99.3	%		97.4	%		2.5	%		4.7	%		(3.3	%)		10.2	%
Crescent Club		257	9/30/2010	$	1,366		97.5	%		95.0	%		4.9	%		13.0	%		(0.2	%)		22.5	%
Devonshire Hills		656	7/16/2001	$	1,658		96.2	%		96.5	%		2.9	%		3.6	%		5.6	%		2.5	%
Hawthorne Court		434	4/4/2002	$	1,488		95.4	%		95.9	%		1.7	%		3.3	%		2.0	%		4.5	%
Heritage Square		80	4/4/2002	$	1,864		98.6	%		98.3	%		4.5	%		5.7	%		(4.6	%)		13.6	%
Holiday Square		144	5/31/2002	$	1,281		98.4	%		94.5	%		2.9	%		7.9	%		6.9	%		8.6	%
Lake Grove		368	2/3/1997	$	1,529		96.4	%		96.9	%		4.0	%		5.2	%		2.3	%		6.9	%
Mid-Island Estates		232	7/1/1997	$	1,473		98.9	%		98.7	%		2.6	%		2.5	%		(0.7	%)		4.6	%
Sayville Commons		342	7/15/2005	$	1,646		97.6	%		97.3	%		2.5	%		4.1	%		4.5	%		3.7	%
South Bay Manor		61	9/11/2000	$	1,709		97.4	%		97.3	%		2.3	%		1.3	%		6.1	%		(2.5	%)
Southern Meadows		452	6/29/2001	$	1,487		96.8	%		94.5	%		3.9	%		7.9	%		(80.6	%)		72.4	%
Westwood Village		242	3/1/2002	$	2,526		98.0	%		95.3	%		3.9	%		9.0	%		(1.2	%)		16.8	%
Woodmont Village		97	3/1/2002	$	1,381		96.5	%		98.5	%		3.2	%		5.8	%		13.7	%		1.9	%
Yorkshire Village		40	3/1/2002	$	1,938		99.9	%		96.8	%		3.1	%		6.5	%		(2.4	%)		15.0	%
Total Long Island		3,647		$	1,605		97.1	%		96.3	%		3.2	%		5.7	%		(7.3	%)		14.7	%		11.0	%

Page 9

Owned Community Results
Fourth Quarter 2012												4Q '12 versus 4Q '11
												% Growth
	# of		Date	4Q '12		4Q '12			4Q '11			Rental			Total			Total			Total			4Q '12
Region	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI (2)
New Jersey
Barrington Gardens		148	3/1/2005	$	1,313		97.9	%		97.5	%		6.7	%		6.7	%		(4.1	%)		13.3	%
Chatham Hill		308	1/30/2004	$	1,928		94.5	%		93.9	%		6.1	%		7.0	%		(19.1	%)		18.4	%
East Hill Gardens		33	7/8/1998	$	1,601		99.5	%		96.8	%		1.2	%		5.7	%		1.0	%		8.3	%
Hackensack Gardens		198	3/1/2005	$	1,192		98.2	%		97.2	%		4.6	%		7.2	%		1.7	%		11.9	%
Jacob Ford Village		270	2/15/2007	$	1,359		98.1	%		97.9	%		6.1	%		5.5	%		(3.8	%)		10.6	%
Lakeview		106	7/8/1998	$	1,451		96.9	%		96.2	%		3.1	%		4.2	%		0.1	%		7.0	%
Northwood		134	1/30/2004	$	1,405		98.3	%		97.5	%		3.0	%		3.1	%		14.9	%		(4.3	%)
Oak Manor		77	7/8/1998	$	1,938		97.1	%		95.1	%		4.8	%		4.9	%		11.0	%		1.9	%
Pleasant View		1,142	7/8/1998	$	1,197		97.0	%		94.6	%		2.5	%		4.8	%		(2.3	%)		9.7	%
Pleasure Bay		270	7/8/1998	$	1,094		98.2	%		93.9	%		3.6	%		7.6	%		8.0	%		7.2	%
Royal Gardens		550	5/28/1997	$	1,307		96.1	%		96.3	%		3.4	%		1.0	%		0.3	%		1.5	%
Wayne Village		275	7/8/1998	$	1,456		97.4	%		98.6	%		2.7	%		0.9	%		4.4	%		(0.9	%)
Windsor Realty		67	7/8/1998	$	1,346		96.5	%		97.2	%		3.3	%		0.9	%		(1.7	%)		2.8	%
Total New Jersey		3,578		$	1,343		96.9	%		95.8	%		3.8	%		4.4	%		(0.9	%)		7.8	%		8.8	%
Philadelphia
Castle Club		158	3/15/2000	$	1,018		89.4	%		94.4	%		2.1	%		(2.1	%)		3.8	%		(6.8	%)
Glen Manor		174	9/23/1997	$	824		94.9	%		97.3	%		0.6	%		(0.9	%)		(8.3	%)		7.2	%
Golf Club		399	3/15/2000	$	1,154		95.1	%		94.5	%		3.9	%		3.1	%		2.1	%		3.5	%
Hill Brook Place		274	7/28/1999	$	959		93.8	%		93.5	%		3.4	%		3.1	%		(0.8	%)		7.3	%
Home Properties of Bryn Mawr		316	3/15/2000	$	1,475		97.4	%		96.9	%		7.3	%		6.3	%		1.6	%		8.8	%
Home Properties of Devon		631	3/15/2000	$	1,261		95.4	%		94.3	%		6.0	%		4.9	%		1.1	%		7.2	%
New Orleans Park		442	7/28/1999	$	910		94.4	%		94.5	%		3.8	%		3.2	%		5.5	%		1.0	%
Racquet Club East		466	7/7/1998	$	1,125		93.9	%		95.1	%		3.6	%		2.2	%		1.6	%		2.7	%
Racquet Club South		103	5/27/1999	$	954		93.7	%		92.0	%		2.0	%		3.9	%		(3.1	%)		12.4	%
Ridley Brook		244	7/28/1999	$	981		95.1	%		94.9	%		2.9	%		3.2	%		2.3	%		4.0	%
Sherry Lake		298	7/23/1998	$	1,307		94.9	%		95.6	%		5.3	%		3.9	%		4.7	%		3.5	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,211		96.6	%		95.3	%		4.1	%		5.8	%		5.7	%		5.9	%
The Landings		384	11/22/1996	$	1,094		96.1	%		94.5	%		4.9	%		6.5	%		1.0	%		10.1	%
Trexler Park		250	3/15/2000	$	1,137		95.1	%		94.8	%		4.6	%		7.9	%		4.8	%		10.1	%
Trexler Park West		216	8/15/2008	$	1,394		96.4	%		95.2	%		4.9	%		5.3	%		(0.5	%)		8.5	%
Waterview		203	7/14/2011	$	1,073		92.7	%		91.3	%		1.9	%		6.1	%		(15.4	%)		28.3	%
William Henry		363	3/15/2000	$	1,210		95.1	%		95.0	%		3.2	%		0.1	%		(15.4	%)		11.4	%
Total Philadelphia		5,067		$	1,144		95.1	%		94.9	%		4.4	%		3.8	%		0.3	%		6.2	%		10.6	%
Washington, D.C.
1200 East West		247	5/11/2010	$	1,888		96.3	%		96.5	%		4.3	%		3.9	%		85.5	%		(24.5	%)
Arbor Park of Alexandria		851	Redevelopment	$	1,513		77.4	%		80.7	%		8.9	%		4.3	%		2.6	%		5.4	%
Braddock Lee		255	3/13/1998	$	1,436		95.8	%		97.8	%		5.9	%		4.9	%		8.6	%		2.9	%
Cider Mill		864	9/27/2002	$	1,210		96.8	%		96.9	%		3.4	%		2.9	%		(2.5	%)		6.8	%
Cinnamon Run		511	12/28/2005	$	1,280		95.3	%		93.7	%		1.3	%		2.5	%		1.5	%		2.9	%
Courts at Huntington Station		421	Lease Up	$	1,986		92.9	%		65.0	%		(3.2	%)		35.7	%		25.5	%		41.4	%
East Meadow		150	8/1/2000	$	1,450		95.1	%		96.2	%		4.9	%		0.1	%		11.1	%		(5.0	%)
Elmwood Terrace		504	6/30/2000	$	987		95.0	%		95.5	%		4.7	%		4.1	%		2.0	%		5.6	%
Falkland Chase		450	9/10/2003	$	1,444		95.7	%		96.9	%		1.6	%		0.7	%		(1.6	%)		1.7	%
Hunters Glen		108	4/19/2011	$	993		95.7	%		96.8	%		5.3	%		4.3	%		(0.4	%)		7.0	%
Mount Vernon Square		1,387	12/27/2006	$	1,312		94.3	%		92.6	%		3.2	%		5.0	%		12.8	%		1.3	%
Newport Village		937	10/17/2011	$	1,559		94.0	%		n/a			n/a			n/a			n/a			n/a
Park Shirlington		294	3/13/1998	$	1,406		97.3	%		95.9	%		4.1	%		4.5	%		(2.5	%)		9.1	%
Peppertree Farm		879	12/28/2005	$	1,251		93.2	%		93.7	%		2.0	%		2.6	%		3.3	%		2.3	%
Seminary Hill		296	7/1/1999	$	1,383		96.3	%		97.0	%		4.4	%		4.1	%		6.2	%		2.8	%
Seminary Towers		544	7/1/1999	$	1,464		95.5	%		96.5	%		4.3	%		4.6	%		2.8	%		5.6	%
Somerset Park		108	10/11/2011	$	1,493		96.1	%		n/a			n/a			n/a			n/a			n/a
Tamarron		132	7/15/1999	$	1,636		95.0	%		91.7	%		3.9	%		7.1	%		(9.4	%)		14.2	%
The Apts at Cobblestone Square		314	Lease Up	$	1,280		97.0	%		n/a			n/a			n/a			n/a			n/a
The Apts at Wellington Trace		240	3/2/2004	$	1,413		97.1	%		97.1	%		3.9	%		4.4	%		2.4	%		5.2	%
The Courts at Dulles		411	11/30/2011	$	1,549		94.6	%		n/a			n/a			n/a			n/a			n/a
The Courts at Fair Oaks		364	9/30/2010	$	1,528		96.5	%		96.3	%		4.3	%		4.2	%		5.7	%		3.7	%
The Manor - MD		435	8/31/2001	$	1,334		96.4	%		95.8	%		2.6	%		3.1	%		(2.5	%)		6.3	%
The Manor - VA		198	2/19/1999	$	1,128		95.6	%		96.3	%		5.2	%		4.4	%		1.4	%		6.4	%
The Manor East		164	5/11/2012	$	1,094		91.9	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185	12/16/2002	$	1,473		96.6	%		96.5	%		5.1	%		5.1	%		19.9	%		(1.7	%)
Village at Potomac Falls		247	8/5/2010	$	1,431		94.7	%		95.5	%		8.3	%		9.9	%		10.8	%		9.4	%
Virginia Village		344	5/31/2001	$	1,430		97.1	%		97.2	%		3.6	%		1.1	%		(14.4	%)		9.9	%
West Springfield		244	11/18/2002	$	1,577		95.6	%		95.2	%		3.3	%		3.1	%		13.2	%		(0.6	%)
Westchester West		345	12/30/2008	$	1,359		93.6	%		92.7	%		3.0	%		5.3	%		(5.7	%)		12.0	%
Woodleaf		228	3/19/2004	$	1,283		94.8	%		95.4	%		1.2	%		1.7	%		(2.2	%)		3.5	%
Woodway at Trinity Centre		504	5/17/2012	$	1,409		96.1	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		13,161		$	1,350		95.4	%		95.3	%		3.5	%		3.8	%		5.1	%		3.0	%		33.9	%
TOTAL OWNED PORTFOLIO		42,635		$	1,276		94.7	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		36,214		$	1,257		95.5	%		95.2	%		3.6	%		4.3	%		0.7	%		6.4	%

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

(2) Represents the percentage of the total NOI for the Company attributed to each region, including Core and Non-Core Properties.

Page 10

Owned Community Results
December YTD													YTD '12 versus YTD '11
													% Growth
		# of		Date	YTD '12		YTD '12			YTD '11			Rental			Total			Total			Total			YTD '12
Region		Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI (2)
Baltimore
Annapolis Roads			282	6/17/2010	$	1,280		92.2	%		90.0	%		1.7	%		9.3	%		(3.1	%)		17.6	%
Bonnie Ridge			960	7/1/1999	$	1,142		95.5	%		95.2	%		3.3	%		3.8	%		(3.4	%)		7.4	%
Canterbury			618	7/15/1999	$	1,007		94.8	%		94.9	%		3.4	%		2.8	%		(4.1	%)		6.8	%
Charleston Place			858	9/30/2010	$	1,178		96.4	%		96.5	%		4.3	%		6.2	%		(3.6	%)		11.0	%
Country Village			344	4/30/1998	$	1,049		94.8	%		96.8	%		5.6	%		2.6	%		(0.0	%)		4.1	%
Dunfield			312	11/1/2007	$	1,200		95.4	%		95.9	%		4.1	%		3.1	%		1.9	%		3.7	%
Fox Hall			720	3/28/2007	$	895		92.3	%		92.1	%		2.9	%		2.6	%		(1.2	%)		5.5	%
Gateway Village			132	7/15/1999	$	1,368		96.4	%		95.8	%		2.4	%		3.7	%		(1.3	%)		6.4	%
Heritage Woods			164	10/4/2006	$	1,194		95.7	%		97.0	%		5.1	%		4.1	%		(1.2	%)		7.0	%
Howard Crossing			1,350	6/28/2012	$	1,098		90.5	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke			208	4/1/2010	$	989		94.8	%		94.6	%		5.0	%		7.5	%		(1.4	%)		13.0	%
Mill Towne Village			384	5/31/2001	$	924		95.6	%		93.7	%		2.2	%		3.8	%		1.5	%		5.2	%
Morningside Heights			1,050	4/30/1998	$	929		92.3	%		92.6	%		3.7	%		2.5	%		1.1	%		3.3	%
Owings Run			504	7/15/1999	$	1,269		95.1	%		95.7	%		2.2	%		1.6	%		(5.3	%)		4.7	%
Ridgeview at Wakefield Valley			204	1/13/2005	$	1,221		96.2	%		95.2	%		1.1	%		1.9	%		0.2	%		2.9	%
Saddle Brooke			468	10/29/2008	$	1,099		94.3	%		93.2	%		6.1	%		8.3	%		(4.7	%)		16.4	%
Selford			102	7/15/1999	$	1,409		96.6	%		94.3	%		3.3	%		8.4	%		(0.1	%)		12.4	%
The Apts at Cambridge Court			544	8/23/2011	$	1,349		92.6	%		n/a			n/a			n/a			n/a			n/a
The Coves at Chesapeake			469	11/20/2006	$	1,286		94.2	%		92.2	%		4.2	%		7.3	%		(5.6	%)		14.3	%
The Greens at Columbia			168	7/29/2010	$	1,427		94.1	%		95.9	%		4.8	%		3.2	%		1.1	%		4.0	%
Top Field			156	10/4/2006	$	1,315		95.3	%		96.9	%		3.6	%		1.9	%		(4.5	%)		4.8	%
Village Square			370	7/15/1999	$	1,193		95.6	%		96.0	%		2.4	%		4.0	%		5.9	%		3.2	%
Westbrooke			110	4/1/2010	$	862		95.2	%		94.6	%		4.7	%		6.4	%		(5.8	%)		18.0	%
Total Baltimore			10,477		$	1,108		94.7	%		94.5	%		3.6	%		4.3	%		(1.9	%)		7.6	%		21.8	%
Boston
Gardencrest			695	6/28/2002	$	1,637		96.7	%		96.3	%		5.6	%		6.2	%		(5.2	%)		12.2	%
Highland House			172	5/31/2006	$	1,244		96.5	%		96.3	%		6.4	%		7.4	%		(0.0	%)		13.3	%
Liberty Commons			120	8/30/2006	$	1,310		96.3	%		96.9	%		3.4	%		2.9	%		5.0	%		2.0	%
Liberty Place			107	6/6/2006	$	1,508		95.9	%		96.0	%		4.2	%		4.0	%		0.9	%		5.9	%
Redbank Village			500	7/8/1998	$	941		96.6	%		96.4	%		3.9	%		5.6	%		0.5	%		9.2	%
Stone Ends			280	2/12/2003	$	1,310		95.7	%		95.1	%		4.8	%		6.3	%		6.4	%		6.3	%
The Commons at Haynes Farm			302	7/15/2011	$	1,288		96.3	%		n/a			n/a			n/a			n/a			n/a
The Heights at Marlborough			348	9/7/2006	$	1,250		94.5	%		94.4	%		5.3	%		6.7	%		0.5	%		11.2	%
The Meadows at Marlborough			264	9/7/2006	$	1,202		95.1	%		95.0	%		4.7	%		4.6	%		0.0	%		8.2	%
The Townhomes of Beverly			204	2/15/2007	$	1,544		96.4	%		96.3	%		4.0	%		5.8	%		(6.6	%)		13.5	%
The Village at Marshfield			276	3/17/2004	$	1,202		96.0	%		95.8	%		3.8	%		4.8	%		3.1	%		5.8	%
Westwoods			35	4/30/2007	$	1,310		97.0	%		96.6	%		6.4	%		11.5	%		(12.4	%)		39.2	%
Total Boston			3,303		$	1,317		96.1	%		95.9	%		4.9	%		5.8	%		(0.9	%)		10.0	%		8.2	%
Chicago
Blackhawk			371	10/20/2000	$	896		95.5	%		95.2	%		2.8	%		2.7	%		(9.5	%)		14.8	%
Courtyards Village	��		224	8/29/2001	$	892		97.1	%		98.0	%		5.8	%		6.0	%		4.4	%		7.5	%
Cypress Place			192	12/27/2000	$	1,008		97.3	%		97.3	%		6.8	%		7.2	%		(14.8	%)		28.1	%
Lakeview Townhomes			120	10/18/2010	$	1,228		93.9	%		94.3	%		6.5	%		9.6	%		1.2	%		16.8	%
The Colony			783	9/1/1999	$	897		96.5	%		97.0	%		3.5	%		3.6	%		(14.5	%)		18.3	%
The Gates of Deer Grove			204	12/15/2011	$	1,042		94.5	%		n/a			n/a			n/a			n/a			n/a
The New Colonies			672	6/23/1998	$	773		95.2	%		95.6	%		2.2	%		2.6	%		1.5	%		3.5	%
Total Chicago			2,566		$	887		95.9	%		96.3	%		3.8	%		4.2	%		(6.8	%)		13.8	%		4.1	%
Florida
The Hamptons			668	7/7/2004	$	1,007		94.9	%		94.9	%		2.8	%		3.7	%		(1.1	%)		8.6	%
Vinings at Hampton Village			168	7/7/2004	$	1,124		96.0	%		96.3	%		1.8	%		1.5	%		(2.7	%)		5.8	%
Total Florida			836		$	1,031		95.1	%		95.2	%		2.6	%		3.2	%		(1.4	%)		8.0	%		1.3	%
Long Island, NY
Bayview / Colonial			160	11/1/2000	$	1,312		98.6	%		98.1	%		4.1	%		5.6	%		(8.6	%)		17.9	%
Cambridge Village			82	3/1/2002	$	1,873		97.9	%		98.0	%		4.7	%		3.5	%		(0.5	%)		6.2	%
Crescent Club			257	9/30/2010	$	1,345		96.2	%		96.7	%		5.5	%		6.8	%		(5.3	%)		16.1	%
Devonshire Hills			656	7/16/2001	$	1,641		96.5	%		96.7	%		3.6	%		4.0	%		0.1	%		6.3	%
Hawthorne Court			434	4/4/2002	$	1,478		96.7	%		96.9	%		2.7	%		3.1	%		2.8	%		3.3	%
Heritage Square			80	4/4/2002	$	1,837		98.1	%		97.7	%		5.3	%		5.9	%		0.0	%		10.7	%
Holiday Square			144	5/31/2002	$	1,269		98.7	%		96.0	%		3.7	%		7.6	%		19.5	%		1.0	%
Lake Grove			368	2/3/1997	$	1,503		96.4	%		95.8	%		4.3	%		5.1	%		(0.5	%)		8.6	%
Mid-Island Estates			232	7/1/1997	$	1,461		98.6	%		97.8	%		4.2	%		5.4	%		(3.4	%)		11.2	%
Sayville Commons			342	7/15/2005	$	1,629		96.7	%		97.0	%		2.5	%		2.2	%		6.5	%		(1.1	%)
South Bay Manor			61	9/11/2000	$	1,684		97.3	%		95.9	%		2.6	%		3.8	%		35.0	%		(11.4	%)
Southern Meadows			452	6/29/2001	$	1,464		96.4	%		95.8	%		3.8	%		3.9	%		(21.0	%)		22.3	%
Westwood Village			242	3/1/2002	$	2,484		97.2	%		96.1	%		4.2	%		7.0	%		2.9	%		9.9	%
Woodmont Village			97	3/1/2002	$	1,370		96.4	%		97.2	%		3.4	%		4.5	%		3.5	%		5.1	%
Yorkshire Village			40	3/1/2002	$	1,905		97.7	%		97.5	%		3.6	%		3.7	%		(2.9	%)		10.7	%
Total Long Island			3,647		$	1,585		96.9	%		96.7	%		3.7	%		4.6	%		(1.0	%)		8.5	%		10.7	%

Page 11

Owned Community Results
December YTD												YTD '12 versus YTD '11
												% Growth
	# of		Date	YTD '12		YTD '12			YTD '11			Rental			Total			Total			Total			YTD '12
Region	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI (2)
New Jersey
Barrington Gardens		148	3/1/2005	$	1,286		97.1	%		96.8	%		7.4	%		8.2	%		5.5	%		9.9	%
Chatham Hill		308	1/30/2004	$	1,881		95.1	%		94.5	%		6.6	%		6.9	%		(5.5	%)		12.5	%
East Hill Gardens		33	7/8/1998	$	1,607		97.7	%		94.5	%		3.4	%		9.3	%		1.5	%		13.9	%
Hackensack Gardens		198	3/1/2005	$	1,176		97.6	%		97.9	%		5.1	%		5.8	%		1.2	%		9.4	%
Jacob Ford Village		270	2/15/2007	$	1,327		98.5	%		96.8	%		6.4	%		8.3	%		(9.2	%)		18.3	%
Lakeview		106	7/8/1998	$	1,431		97.3	%		96.1	%		3.7	%		4.3	%		(2.1	%)		9.1	%
Northwood		134	1/30/2004	$	1,387		97.2	%		96.9	%		3.6	%		5.2	%		9.9	%		2.0	%
Oak Manor		77	7/8/1998	$	1,890		97.9	%		95.4	%		5.2	%		6.5	%		3.4	%		8.1	%
Pleasant View		1,142	7/8/1998	$	1,190		95.8	%		95.6	%		3.4	%		3.6	%		(2.7	%)		7.9	%
Pleasure Bay		270	7/8/1998	$	1,081		96.6	%		94.8	%		3.8	%		5.5	%		(2.3	%)		12.9	%
Royal Gardens		550	5/28/1997	$	1,294		96.5	%		96.4	%		3.8	%		3.4	%		(5.1	%)		9.3	%
Wayne Village		275	7/8/1998	$	1,443		97.1	%		96.9	%		2.9	%		2.9	%		(2.4	%)		5.9	%
Windsor Realty		67	7/8/1998	$	1,324		95.0	%		96.8	%		2.9	%		1.6	%		(1.8	%)		4.2	%
Total New Jersey		3,578		$	1,326		96.5	%		96.0	%		4.3	%		4.9	%		(2.4	%)		9.6	%		9.1	%
Philadelphia
Castle Club		158	3/15/2000	$	1,013		93.7	%		94.0	%		3.6	%		1.8	%		1.1	%		2.3	%
Glen Manor		174	9/23/1997	$	821		94.6	%		95.9	%		1.0	%		(2.0	%)		(5.6	%)		2.0	%
Golf Club		399	3/15/2000	$	1,137		94.6	%		94.3	%		3.9	%		2.3	%		(4.6	%)		6.5	%
Hill Brook Place		274	7/28/1999	$	942		95.5	%		94.7	%		4.1	%		3.3	%		(2.5	%)		9.3	%
Home Properties of Bryn Mawr		316	3/15/2000	$	1,435		94.6	%		94.1	%		10.8	%		9.0	%		(7.0	%)		18.9	%
Home Properties of Devon		631	3/15/2000	$	1,233		94.1	%		93.8	%		7.4	%		5.7	%		(3.0	%)		11.1	%
New Orleans Park		442	7/28/1999	$	898		94.8	%		94.7	%		3.6	%		2.4	%		(0.7	%)		5.7	%
Racquet Club East		466	7/7/1998	$	1,113		95.0	%		95.1	%		4.9	%		3.6	%		(1.6	%)		7.4	%
Racquet Club South		103	5/27/1999	$	945		94.8	%		95.2	%		3.9	%		2.1	%		(2.4	%)		6.8	%
Ridley Brook		244	7/28/1999	$	967		95.5	%		93.9	%		3.0	%		3.6	%		(1.9	%)		9.0	%
Sherry Lake		298	7/23/1998	$	1,271		96.3	%		96.1	%		5.4	%		4.1	%		(0.8	%)		6.8	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,186		97.1	%		96.3	%		4.3	%		5.1	%		(0.4	%)		8.8	%
The Landings		384	11/22/1996	$	1,068		96.2	%		95.9	%		5.5	%		5.4	%		0.3	%		8.9	%
Trexler Park		250	3/15/2000	$	1,118		94.6	%		94.9	%		5.0	%		4.8	%		(2.7	%)		10.3	%
Trexler Park West		216	8/15/2008	$	1,372		95.5	%		96.2	%		5.6	%		5.4	%		0.0	%		8.4	%
Waterview		203	7/14/2011	$	1,060		93.1	%		n/a			n/a			n/a			n/a			n/a
William Henry		363	3/15/2000	$	1,194		94.7	%		94.3	%		5.6	%		6.1	%		(10.5	%)		19.2	%
Total Philadelphia		5,067		$	1,124		95.0	%		94.8	%		5.4	%		4.4	%		(3.0	%)		9.8	%		10.8	%
Washington, D.C.
1200 East West		247	5/11/2010	$	1,885		96.3	%		96.0	%		7.9	%		9.2	%		20.6	%		3.6	%
Arbor Park of Alexandria		851	Redevelopment	$	1,462		79.9	%		86.6	%		8.7	%		0.5	%		(2.5	%)		2.4	%
Braddock Lee		255	3/13/1998	$	1,396		97.5	%		97.7	%		4.6	%		3.6	%		3.4	%		3.6	%
Cider Mill		864	9/27/2002	$	1,192		96.2	%		95.4	%		3.6	%		4.2	%		1.4	%		6.4	%
Cinnamon Run		511	12/28/2005	$	1,276		93.9	%		94.8	%		2.6	%		2.2	%		4.8	%		1.0	%
Courts at Huntington Station		421	Lease Up	$	1,994		87.8	%		n/a			n/a			n/a			n/a			n/a
East Meadow		150	8/1/2000	$	1,415		96.8	%		97.8	%		4.5	%		1.6	%		0.7	%		2.0	%
Elmwood Terrace		504	6/30/2000	$	969		95.3	%		95.3	%		4.6	%		4.9	%		(1.0	%)		9.8	%
Falkland Chase		450	9/10/2003	$	1,440		95.5	%		95.5	%		2.7	%		2.8	%		1.7	%		3.3	%
Hunters Glen		108	4/19/2011	$	976		95.9	%		n/a			n/a			n/a			n/a			n/a
Mount Vernon Square		1,387	12/27/2006	$	1,289		94.5	%		94.4	%		3.5	%		4.1	%		5.2	%		3.5	%
Newport Village		937	10/17/2011	$	1,553		94.6	%		n/a			n/a			n/a			n/a			n/a
Park Shirlington		294	3/13/1998	$	1,380		97.2	%		97.1	%		4.5	%		3.7	%		0.8	%		5.7	%
Peppertree Farm		879	12/28/2005	$	1,245		94.0	%		93.2	%		2.8	%		3.9	%		2.5	%		4.8	%
Seminary Hill		296	7/1/1999	$	1,367		97.2	%		97.6	%		5.3	%		4.5	%		1.7	%		6.5	%
Seminary Towers		544	7/1/1999	$	1,440		95.6	%		96.0	%		5.8	%		5.3	%		1.7	%		7.7	%
Somerset Park		108	10/11/2011	$	1,451		97.1	%		n/a			n/a			n/a			n/a			n/a
Tamarron		132	7/15/1999	$	1,588		95.5	%		95.4	%		3.3	%		3.3	%		(8.6	%)		8.5	%
The Apts at Cobblestone Square		314	Lease Up	$	1,270		83.7	%		n/a			n/a			n/a			n/a			n/a
The Apts at Wellington Trace		240	3/2/2004	$	1,394		96.8	%		97.7	%		5.3	%		4.8	%		0.5	%		6.8	%
The Courts at Dulles		411	11/30/2011	$	1,544		94.5	%		n/a			n/a			n/a			n/a			n/a
The Courts at Fair Oaks		364	9/30/2010	$	1,500		96.2	%		96.0	%		4.3	%		5.2	%		5.1	%		5.3	%
The Manor - MD		435	8/31/2001	$	1,321		95.8	%		94.5	%		3.1	%		4.9	%		(5.6	%)		10.9	%
The Manor - VA		198	2/19/1999	$	1,106		96.9	%		97.5	%		6.6	%		4.8	%		(1.9	%)		9.4	%
The Manor East		164	5/11/2012	$	1,057		94.3	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185	12/16/2002	$	1,449		96.7	%		96.3	%		5.6	%		5.7	%		8.1	%		4.5	%
Village at Potomac Falls		247	8/5/2010	$	1,391		96.4	%		96.2	%		8.2	%		9.5	%		2.4	%		14.0	%
Virginia Village		344	5/31/2001	$	1,411		97.0	%		98.0	%		5.8	%		2.4	%		(8.4	%)		8.7	%
West Springfield		244	11/18/2002	$	1,556		95.8	%		96.8	%		5.5	%		5.4	%		7.0	%		4.6	%
Westchester West		345	12/30/2008	$	1,337		93.9	%		93.1	%		2.8	%		5.1	%		0.3	%		7.9	%
Woodleaf		228	3/19/2004	$	1,284		95.5	%		94.2	%		2.9	%		4.5	%		(0.7	%)		7.0	%
Woodway at Trinity Centre		504	5/17/2012	$	1,374		95.9	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		13,161		$	1,332		95.6	%		95.5	%		4.2	%		4.5	%		2.1	%		5.8	%		34.0	%
TOTAL OWNED PORTFOLIO		42,635		$	1,259		94.9	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		36,214		$	1,239		95.6	%		95.5	%		4.2	%		4.5	%		(1.1	%)		8.1	%

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

(2) Represents the percentage of the total NOI for the Company attributed to each region, including Core and Non-Core Properties.

Page 12

Physical Occupancy Comparison By Region - Core Properties
Sequential Comparison
Fourth Quarter 2012 vs. Third Quarter 2012
Region	% Units			4Q '12			3Q '12			Variance
Washington, D.C.		25.8	%		95.4	%		95.6	%		(0.2	%)
Baltimore		23.7	%		94.2	%		94.3	%		(0.1	%)
New Jersey, Long Island		20.0	%		97.0	%		96.6	%		0.4	%
Philadelphia		13.4	%		95.1	%		94.3	%		0.8	%
Boston		8.3	%		95.7	%		96.6	%		(0.9	%)
Chicago		6.5	%		95.1	%		96.1	%		(1.0	%)
Florida		2.3	%		94.6	%		95.3	%		(0.7	%)
Total Core		100.0	%		95.5	%		95.5	%		0.0	%
Year over Year Comparison
Fourth Quarter 2012 vs. Fourth Quarter 2011
Region	% Units			4Q '12			4Q '11			Variance
Washington, D.C.		25.8	%		95.4	%		95.3	%		0.1	%
Baltimore		23.7	%		94.2	%		94.2	%		0.0	%
New Jersey, Long Island		20.0	%		97.0	%		96.1	%		0.9	%
Philadelphia		13.4	%		95.1	%		94.9	%		0.2	%
Boston		8.3	%		95.7	%		95.3	%		0.4	%
Chicago		6.5	%		95.1	%		96.4	%		(1.3	%)
Florida		2.3	%		94.6	%		94.7	%		(0.1	%)
Total Core		100.0	%		95.5	%		95.2	%		0.3	%
December vs. Quarter Comparison
Region	% Units			Dec '12			4Q '12			Variance
Washington, D.C.		25.8	%		95.2	%		95.4	%		(0.2	%)
Baltimore		23.7	%		94.3	%		94.2	%		0.1	%
New Jersey, Long Island		20.0	%		97.5	%		97.0	%		0.5	%
Philadelphia		13.4	%		95.5	%		95.1	%		0.4	%
Boston		8.3	%		95.4	%		95.7	%		(0.3	%)
Chicago		6.5	%		95.4	%		95.1	%		0.3	%
Florida		2.3	%		93.7	%		94.6	%		(0.9	%)
Total Core		100.0	%		95.6	%		95.5	%		0.1	%

Page 13

Net Operating Results - Core Properties
Sequential Results
Fourth Quarter 2012 vs. Third Quarter 2012
						��
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Washington, D.C.		25.8	%		0.4	%		0.7	%		(3.5	%)		3.1	%
Baltimore		23.7	%		0.8	%		1.7	%		1.9	%		1.7	%
New Jersey, Long Island		20.0	%		1.0	%		1.7	%		0.7	%		2.2	%
Philadelphia		13.4	%		1.9	%		3.5	%		7.4	%		1.1	%
Boston		8.3	%		(0.2	%)		(0.5	%)		7.6	%		(4.5	%)
Chicago		6.5	%		0.0	%		0.4	%		27.3	%		(12.6	%)
Florida		2.3	%		(0.3	%)		(0.7	%)		(4.3	%)		2.6	%
Total Core		100.0	%		0.7	%		1.3	%		2.2	%		0.9	%
Year Over Year Results
Fourth Quarter 2012 vs. Fourth Quarter 2011
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Washington, D.C.		25.8	%		3.7	%		3.8	%		5.1	%		3.0	%
Baltimore		23.7	%		3.2	%		4.2	%		3.8	%		4.4	%
New Jersey, Long Island		20.0	%		4.7	%		5.1	%		(4.5	%)		11.5	%
Philadelphia		13.4	%		4.6	%		3.8	%		0.3	%		6.2	%
Boston		8.3	%		5.0	%		5.5	%		2.8	%		7.0	%
Chicago		6.5	%		1.5	%		2.4	%		(6.5	%)		9.8	%
Florida		2.3	%		5.4	%		4.7	%		(3.5	%)		12.9	%
Total Core		100.0	%		4.0	%		4.3	%		0.7	%		6.4	%

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

Page 14

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						3QQ '12						4Q '12						YTD '12
Region	New			Renewal			New			Renewal			New			Renewal			New			Renewal			New			Renewal
Baltimore		0.1	%		3.6	%		1.9	%		3.4	%		2.3	%		4.0	%		(0.1	%)		4.3	%		1.2	%		3.9	%
Boston		3.8	%		4.1	%		6.6	%		3.6	%		5.4	%		4.5	%		1.7	%		4.3	%		4.8	%		4.1	%
Chicago		0.1	%		3.8	%		1.5	%		3.4	%		3.1	%		3.4	%		(1.7	%)		4.4	%		1.1	%		3.5	%
Florida		1.1	%		2.4	%		5.9	%		2.5	%		4.9	%		4.3	%		5.5	%		4.5	%		4.0	%		3.5	%
New Jersey, Long Island		1.9	%		4.0	%		4.0	%		3.3	%		3.1	%		3.4	%		1.2	%		3.1	%		2.8	%		3.3	%
Philadelphia		6.0	%		3.0	%		6.7	%		3.4	%		4.6	%		4.5	%		(0.4	%)		3.5	%		4.4	%		3.9	%
Washington, D.C.		1.3	%		4.1	%		3.4	%		3.9	%		3.5	%		4.3	%		1.3	%		4.5	%		2.5	%		4.1	%
Total Core		1.8	%		3.8	%		3.8	%		3.5	%		3.4	%		4.0	%		0.7	%		3.9	%		2.6	%		3.8	%
Spread (1)		2.0%						(0.3%)						0.6%						3.2%						1.2%

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

Page 15

Resident Statistics
Top Six Reasons for Moveouts - Owned Communities
	4Q			3Q			2Q			1Q			4Q			3Q			2Q			1Q			Year			Year			Year			Year
	'12			'12			'12			'12			'11			'11			'11			'11			'12			'11			'10			'09
Eviction/skip		14.3	%		12.7	%		12.8	%		16.9	%		16.2	%		14.4	%		14.8	%		20.4	%		14.2	%		16.4	%		15.6	%		14.0	%
Employment related		14.1	%		12.5	%		13.4	%		12.6	%		12.3	%		12.9	%		13.6	%		15.0	%		13.2	%		13.4	%		13.9	%		15.7	%
Transfer w/in HME		13.3	%		12.5	%		11.5	%		15.0	%		13.7	%		11.0	%		10.6	%		11.2	%		13.1	%		11.6	%		12.3	%		12.9	%
Home purchase		13.0	%		11.2	%		11.2	%		9.6	%		11.4	%		10.8	%		9.9	%		9.5	%		11.3	%		10.4	%		11.0	%		12.3	%
Location convenience/
apartment size		12.1	%		13.0	%		13.5	%		11.7	%		12.8	%		14.1	%		13.0	%		12.6	%		12.6	%		13.1	%		12.1	%		10.1	%
Rent level		10.5	%		11.0	%		10.8	%		11.0	%		10.1	%		11.9	%		10.9	%		9.1	%		10.8	%		10.5	%		10.0	%		10.0	%
Traffic - Core													Turnover - Core
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	4Q '12			YTD '12			4Q '12			YTD '12
	vs.			vs.			vs.			vs.			4Q			4Q			YTD			YTD
	4Q '11			YTD '11			4Q '11			YTD '11			'12			'11			'12			'11
Region
Baltimore		(3.9	%)		0.2	%		(2.7	%)		1.5	%		9.0	%		9.1	%		40.7	%		39.5	%
Boston		14.1	%		0.7	%		27.4	%		(0.1	%)		9.9	%		9.6	%		39.5	%		40.1	%
Chicago		2.7	%		(5.3	%)		(8.7	%)		(8.5	%)		10.0	%		10.3	%		48.9	%		47.8	%
Florida		(21.7	%)		(5.5	%)		(8.9	%)		(2.5	%)		11.6	%		13.0	%		44.6	%		48.6	%
Long Island		(6.2	%)		(7.4	%)		17.3	%		(4.5	%)		7.0	%		7.6	%		32.9	%		31.9	%
New Jersey		(25.1	%)		(7.5	%)		(15.2	%)		(3.4	%)		8.1	%		7.5	%		35.2	%		35.1	%
Philadelphia		3.3	%		(4.8	%)		6.3	%		1.0	%		9.0	%		9.4	%		43.1	%		42.8	%
Washington, D.C.		(7.6	%)		(9.8	%)		(8.3	%)		0.8	%		7.8	%		8.4	%		35.4	%		34.9	%
Total Core		(4.8	%)		(5.0	%)		(1.0	%)		(0.7	%)		8.6	%		8.8	%		38.9	%		38.4	%
Bad Debt as % of Rent and Utility Recovery - Core
	4Q			4Q			YTD			YTD
	'12			'11			'12			'11
		1.06	%		1.17	%		1.01	%		1.17	%

Page 16

Net Operating Income Detail
($ in thousands, except per unit data)
Core Properties
							Qtr			%									YTD			%
	4Q '12			4Q '11			Variance			Variance			YTD '12			YTD '11			Variance			Variance
Rent	$	128,965		$	124,015		$	4,950			4.0	%	$	509,476		$	487,214		$	22,262			4.6	%
Utility recovery		5,570			5,080			490			9.6	%		20,471			20,753			(282	)		(1.4	%)
Rent including recoveries		134,535			129,095			5,440			4.2	%		529,947			507,967			21,980			4.3	%
Other income		5,651			5,348		��	303			5.7	%		24,482			22,355			2,127			9.5	%
Total income		140,186			134,443			5,743			4.3	%		554,429			530,322			24,107			4.5	%
Operating & maintenance		(50,528	)		(50,167	)		(361	)		(0.7	%)		(202,819	)		(205,128	)		2,309			1.1	%
Core Properties NOI	$	89,658		$	84,276		$	5,382			6.4	%	$	351,610		$	325,194		$	26,416			8.1	%
Physical Occupancy %		95.5	%		95.2	%		0.3	%					95.6	%		95.5	%		0.1	%
Weighted Avg Rent per Unit	$	1,257		$	1,213		$	44			3.6	%	$	1,239		$	1,189		$	50			4.2	%

Acquired Properties (1)							Redevelopment Property (2)
	4Q '12			YTD '12				4Q '12			YTD '12
Rent	$	17,773		$	58,850		Rent	$	2,970		$	11,851
Utility recovery		860			2,844		Utility recovery		127			483
Rent including recoveries		18,633			61,694		Rent including recoveries		3,097			12,334
Other income		634			2,179		Other income		120			569
Total income		19,267			63,873		Total income		3,217			12,903
Operating & maintenance		(6,935	)		(22,664	)	Operating & maintenance		(1,177	)		(4,762	)
Acquired Properties NOI	$	12,332		$	41,209		Redevelopment Property NOI	$	2,040		$	8,141
Physical Occupancy %		93.4	%		94.0	%	Physical Occupancy %		77.4	%		79.9	%
Weighted Avg Rent per Unit	$	1,315		$	1,324		Weighted Avg Rent per Unit	$	1,513		$	1,462

Development Properties (3)
	4Q '12			YTD '12
Rent	$	3,458		$	11,756
Utility recovery		62			185
Rent including recoveries		3,520			11,941
Other income		221			892
Total income		3,741			12,833
Operating & maintenance		(1,327	)		(4,795	)
Development Properties NOI	$	2,414		$	8,038
Physical Occupancy %		94.2	%		86.7	%
Weighted Avg Rent per Unit	$	1,684		$	1,736

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

(2) The Redevelopment Property is Arbor Park of Alexandria, where 851 units in fifty-two buildings began being extensively renovated in 2011 on a building by building basis.

(3) Development Properties consists of two properties, Courts at Huntington Station and The Apts at Cobblestone Square.

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 25.4%.  This will adjust for the typical seasonal variability in NOI for each quarter.

Page 17

Operating Expense Detail - Core Properties
($ in thousands)
					Qtr			%							YTD			%
	4Q '12		4Q '11		Variance			Variance			YTD '12		YTD '11		Variance			Variance
Electricity	$	1,616	$	1,679	$	(63	)		(3.8	%)	$	7,142	$	7,720	$	(578	)		(7.5	%)
Gas		4,301		4,323		(22	)		(0.5	%)		13,465		15,780		(2,315	)		(14.7	%)
Water & sewer		4,422		4,208		214			5.1	%		17,000		16,473		527			3.2	%
Repairs & maintenance		7,429		7,794		(365	)		(4.7	%)		30,450		31,009		(559	)		(1.8	%)
Personnel expense		11,576		11,251		325			2.9	%		46,295		47,177		(882	)		(1.9	%)
Advertising		1,066		1,066		-			0.0	%		4,373		4,276		97			2.3	%
Legal & professional		649		434		215			49.5	%		2,002		1,866		136			7.3	%
Office & telephone		1,454		1,359		95			7.0	%		6,042		5,720		322			5.6	%
Property insurance		1,358		830		528			63.6	%		6,340		5,024		1,316			26.2	%
Real estate taxes		12,291		12,730		(439	)		(3.4	%)		51,377		49,677		1,700			3.4	%
Snow		127		80		47			58.8	%		378		1,537		(1,159	)		(75.4	%)
Trash		747		786		(39	)		(5.0	%)		3,023		3,078		(55	)		(1.8	%)
Property management G & A		3,492		3,627		(135	)		(3.7	%)		14,932		15,791		(859	)		(5.4	%)
Total Core	$	50,528	$	50,167	$	361			0.7	%	$	202,819	$	205,128	$	(2,309	)		(1.1	%)

Page 18

Discontinued Operations (1)
($ in thousands)
The operating results of discontinued operations are summarized as follows for the three and twelve months ended December 31, 2012 and 2011:
	4Q '12			4Q '11		YTD '12		YTD '11
Revenues:
Rental income	$	1,620		$	4,236	$	14,360	$	16,590
Property other income		405			437		1,834		1,826
Total revenues		2,025			4,673		16,194		18,416
Expenses:
Operating and maintenance		828			1,815		6,201		7,468
Interest expense(2)		2,319			739		4,490		2,965
Depreciation and amortization		281			1,047		3,355		4,105
Total expenses		3,428			3,601		14,046		14,538
Income (loss) from discontinued operations	$	(1,403	)	$	1,072	$	2,148	$	3,878

(1) Discontinued operations consists of two properties (424 units) disposed in 3Q '12, and four properties (1,172 units) disposed in 4Q '12.

(2) Includes loan prepayment penalty of $2,115 for the three and twelve months ended December 31, 2012.

Page 19

Summary of Recent Acquisitions
($ in millions, except unit and per unit data)
											Wtd. Avg.
			Purchase	# of		CAP (1)			Purchase		Price Per
Community	Region	State	Date	Units		Rate			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	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.

Page 20

Summary of Recent Sales
($ in millions, except unit and per unit data)
											Wtd. Avg.
			Sale	# of		CAP (1)			Sales		Price Per
Community	Region	State	Date	Units		Rate			Price		Unit
2012 Sales
Chesterfield Apartments	Philadelphia	PA	9/13/2012		247		6.1	%	$	25.2	$	101,842
Woodholme Manor	Baltimore	MD	9/20/2012		177		7.0	%		16.0		90,395
Curren Terrace	Philadelphia	PA	10/11/2012		318		6.0	%		29.8		93,689
Falcon Crest	Baltimore	MD	11/8/2012		396		6.8	%		46.0		116,162
Timbercroft	Baltimore	MD	12/13/2012		284		6.3	%		29.2		102,641
Glen Brook	Philadelphia	PA	12/21/2012		174		6.1	%		13.5		77,586
			Total 2012		1,596		6.4	%	$	159.6	$	99,999
2011 Sales
			Total 2011		-				$	-
			Total 2012 and 2011 Sales		1,596		6.4	%	$	159.6	$	99,999

(1) CAP rate based on historical NOI after an allowance for a 2.7% management fee but before capital expenditures.

Page 21

Breakdown of Owned Units By Region
				Net							Net
				Acquired/							Acquired/
		As of		Developed		As of		12/31/2011			Developed			As of		Current
Region	State	12/31/2010		in 2011		12/31/2011		% of Units			in 2012			12/31/2012		% of Units
Suburban Washington, D.C.	MD/VA		10,393		1,837		12,230		29.2	%		931			13,161		30.9	%
Baltimore	MD		9,440		544		9,984		23.8	%		493			10,477		24.6	%
Suburban New York City	NY/NJ		7,225		-		7,225		17.2	%		-			7,225		16.9	%
Philadelphia	PA		5,603		203		5,806		13.8	%		(739	)		5,067		11.9	%
Boston	MA		3,002		302		3,304		7.9	%		(1	)		3,303		7.7	%
Chicago	IL		2,362		204		2,566		6.1	%		-			2,566		6.0	%
Florida	FL		836		-		836		2.0	%		-			836		2.0	%
Total			38,861		3,090		41,951		100.0	%		684			42,635		100.0	%

Page 22

Debt Summary Schedule
		INTEREST		12/31/12		MATURITY	YEARS TO
PROPERTY	LENDER	RATE		BALANCE		DATE	MATURITY
FIXED RATE SECURED
Hackensack Gardens - 1st	JPMorgan Chase - Fannie Mae		5.260		4,174,685	03/01/13		0.16
Hackensack Gardens - 2nd	JPMorgan Chase - Fannie Mae		5.440		4,099,822	03/01/13		0.16
Barrington Gardens	Wachovia - Freddie Mac		4.960		10,597,167	04/01/13		0.25
Canterbury Apartments - 1st	M&T Realty-Fannie Mae		5.020		25,368,905	05/01/13		0.33
Canterbury Apartments - 2nd	M&T Realty-Fannie Mae		6.460		16,169,554	05/01/13		0.33
Multi-Property Facility	Prudential - Fannie Mae		6.475		100,000,000	08/31/13		0.67
Saddle Brook Apts. - 1st	Wells Fargo - Fannie Mae		5.840		26,350,401	11/01/13		0.84
Saddle Brook Apts. - 2nd	Wells Fargo - Fannie Mae		6.290		3,090,316	11/01/13		0.84
Falkland Chase	Centerline (CIII) - Fannie Mae		5.480		9,906,270	04/01/14		1.25
The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.520		22,937,105	04/01/14		1.25
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.270		32,971,022	07/01/14		1.50
The Greens at Columbia	M&T Realty-Fannie Mae		3.930		9,270,420	08/01/14		1.58
Westchester West - 1st	Deutsche Bank Berkshire - Freddie		6.150		26,210,248	03/01/15		2.16
Westchester West - 2nd	Deutsche Bank Berkshire - Freddie		6.640		7,297,663	03/01/15		2.16
Stratford Greens	Capital One Bank		5.750		29,806,312	07/01/15		2.50
Sayville Commons	M&T Realty - Freddie Mac		5.000		38,045,014	08/01/15		2.58
Charleston Place	Wells Fargo - Freddie Mac		3.770		32,189,627	09/01/15		2.67
Charleston Place	Wells Fargo - Freddie Mac		3.770		22,155,776	09/02/15		2.67
Charleston Place	Wells Fargo - Freddie Mac		3.770		19,287,144	09/03/15		2.67
Cypress Place Apartments	Prudential - Fannie Mae		6.555		9,926,507	11/01/15		2.84
Golf Club Apartments	Prudential - Fannie Mae		6.380		31,983,508	11/01/15		2.84
Northwood Apartments	M&T Realty - Freddie Mac		5.500		10,218,802	12/01/15		2.92
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.250		48,271,795	01/01/16		3.00
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.550		5,012,614	01/01/16		3.00
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.250		74,299,800	01/01/16		3.00
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.550		1,822,765	01/01/16		3.00
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.565		48,909,882	02/01/16		3.09
Devonshire - 1st	Wachovia - Fannie Mae		5.600		35,816,956	04/01/16		3.25
Devonshire - 2nd	Wachovia - Fannie Mae		6.235		8,125,771	04/01/16		3.25
Mid-Island	Prudential - Fannie Mae		5.480		18,849,515	04/01/16		3.25
Owings Run 1 & 2	Prudential - Fannie Mae		5.590		40,822,794	04/01/16		3.25
The Manor East	KeyBank - Freddie Mac		3.250		7,136,154	04/01/16		3.25
Country Village	Centerline (CIII) - Fannie Mae		5.520		17,974,555	06/01/16		3.42
Fox Hall Apartments	Columbia Nat'l - Freddie Mac		5.610		47,000,000	06/01/17		4.42
Mill Towne Village	Prudential - Fannie Mae		5.990		24,239,000	09/01/17		4.67
Royal Gardens Apts.	M&T Realty - Freddie Mac		5.830		47,000,000	11/01/17		4.84
Village Square 1, 2 & 3	Prudential - Fannie Mae		5.810		39,285,000	12/01/17		4.92
Chatham Hill	M&T Realty - Freddie Mac		5.590		43,163,693	01/01/18		5.01
William Henry Apartments	PNC - Fannie Mae		4.850		27,838,327	01/01/18		5.01
Seminary Towers Apartments	Prudential - Fannie Mae		5.485		53,515,000	07/01/18		5.50
The Manor (MD)	Prudential - Fannie Mae		4.230		45,078,091	11/01/18		5.84
Bonnie Ridge - 1st	Prudential Life		6.600		8,915,537	12/15/18		5.96
Bonnie Ridge - 2nd	Prudential Life		6.160		16,983,863	12/15/18		5.96
Bonnie Ridge - 3rd	Prudential Life		6.070		24,075,645	12/15/18		5.96
Annapolis Roads	Amerisphere - Fannie Mae		5.120		23,345,286	01/01/19		6.01
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.750		17,749,185	01/01/19		6.01
The Sycamores	M&T Realty - Freddie Mac		5.710		20,689,739	01/01/19		6.01
Top Field Apartments	M&T Realty - Fannie Mae		4.840		16,153,090	01/01/19		6.01
Westwood Village	M&T Realty - Freddie Mac		5.680		45,329,124	01/01/19		6.01
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.470		11,976,302	07/01/19		6.50
Glen Manor	Prudential - Fannie Mae		5.830		7,715,526	08/01/19		6.59
Ridley Brook	Prudential - Fannie Mae		5.830		12,808,444	08/01/19		6.59
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.500		48,163,797	08/01/19		6.59
Southern Meadows	Red Mortgage - Fannie Mae		5.360		39,660,825	10/01/19		6.75
Elmwood Terrace	M & T Realty - Fannie Mae		5.560		26,052,424	11/01/19		6.84
Lakeview	Greystone - Fannie Mae		5.310		8,840,585	12/01/19		6.92
The Landings	Prudential - Fannie Mae		5.600		25,468,465	01/01/20		7.01
East Meadow Apartments	M&T Realty - Freddie Mac		5.400		14,335,986	05/01/20		7.34
Selford Townhomes	M&T Realty - Freddie Mac		5.400		8,666,882	05/01/20		7.34
South Bay Manor	M&T Realty - Freddie Mac		5.400		6,572,385	05/01/20		7.34
Stone Ends Apts.	M&T Realty - Freddie Mac		5.400		24,411,717	05/01/20		7.34
Tamarron Apartments	M&T Realty - Freddie Mac		5.400		14,343,690	05/01/20		7.34
The Manor (VA)	M&T Realty - Freddie Mac		5.400		13,462,557	05/01/20		7.34
Woodmont Village	M&T Realty - Freddie Mac		5.400		9,713,649	05/01/20		7.34
Trexler Park	Greystone - Fannie Mae		4.340		37,416,785	09/01/20		7.67

Page 23

Debt Summary Schedule (Continued)
			INTEREST	12/31/12	MATURITY	YEARS TO
PROPERTY		LENDER	RATE	BALANCE	DATE	MATURITY
Arbor Park of Alexandria		Prudential - Fannie Mae	4.350	94,345,099	11/01/20	7.84
New Orleans Park		M & T Realty - Fannie Mae	4.580	22,943,268	11/01/20	7.84
Racquet Club East		PNC - Fannie Mae	4.740	36,732,076	12/01/20	7.92
Heritage Woods Apts		Greystone - Fannie Mae	5.390	14,130,707	01/01/21	8.01
The Meadows at Marlborough		Prudential - Fannie Mae	5.500	20,642,657	01/01/21	8.01
Home Properties of Devon		M & T Realty - Fannie Mae	4.850	59,235,978	08/01/21	8.59
Pleasant View Gardens		Prudential - Fannie Mae	4.510	93,375,826	11/01/21	8.84
Dunfield Townhomes		Midland Mortgage - HUD	5.250	11,002,583	09/01/28	15.68
Highland House		Arbor Comml - Fannie Mae	6.320	5,548,095	01/01/29	16.01
WTD AVG - FIXED SECURED			5.295	1,967,025,757		4.94
VARIABLE RATE SECURED
Virginia Village		Wachovia - Freddie Mac	2.090	28,278,996	07/01/15	2.50
Hill Brook Apts		M&T Realty - Freddie Mac	3.132	12,287,660	09/01/16	3.67
Wayne Village		M&T Realty - Freddie Mac	3.282	25,037,792	09/01/16	3.67
Cider Mill Apts		M&T Realty - Freddie Mac	3.117	60,134,005	01/01/17	4.01
The Heights at Marlborough		PNC Real Estate	3.288	22,635,854	01/01/17	4.01
Sherry Lake		M&T Realty - Freddie Mac	3.111	24,932,189	04/01/17	4.25
Falkland Chase		Montgomery Cty HOC-Fannie	1.218	24,695,000	10/01/30	17.76
WTD AVG - VARIABLE SECURED			2.774	198,001,496		5.48
WTD AVG - TOTAL SECURED DEBT			5.065	2,165,027,253		4.99
FIXED RATE UNSECURED
Private Placement Senior Notes - Series A		Various Investors	4.460	90,000,000	12/19/18	5.97
Private Placement Senior Notes - Series B		Various Investors	5.000	60,000,000	12/19/21	8.97
Senior Notes		Prudential Life Insurance	4.160	50,000,000	06/27/19	6.49
Bank Term Loan w/ Interest Rate Swap		M and T Bank et. al.	1.985	250,000,000	12/08/16	3.94
VARIABLE RATE UNSECURED
Revolving Line of Credit		M and T Bank et. al.	1.550	162,500,000	12/08/15	2.94
WTD AVG - TOTAL UNSECURED DEBT			2.706	612,500,000		4.67
TOTAL COMBINED DEBT			4.545	2,777,527,253		4.92
% OF PORTFOLIO - FIXED	87.0%
% OF PORTFOLIO - VARIABLE	13.0%
WTG AVG - TOTAL FIXED RATE DEBT			4.891			5.01
WTD AVG - TOTAL VARIABLE RATE DEBT			2.222			4.33
WTG AVG - COMBINED DEBT			4.545			4.92

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
2013		6.05		189,850,850		-		-		189,850,850		7.26	%
2014		5.21		75,084,818		-		-		75,084,818		2.87	%
2015		5.17		227,120,601		2.09		28,278,996		255,399,597		9.77	%
2016		3.87		557,042,601		3.23		37,325,452		594,368,053		22.73	%
2017		5.78		157,524,000		3.15		107,702,048		265,226,048		10.14	%
2018		5.08		309,570,157		-		-		309,570,157		11.84	%
2019		5.14		328,484,327		-		-		328,484,327		12.56	%
2020		4.83		308,412,559		-		-		308,412,559		11.79	%
2021		4.84		247,385,168						247,385,168		9.46	%
2022 - 2030		5.61		16,550,677		1.22		24,695,000		41,245,677		1.58	%
TOTAL		4.891	$	2,417,025,757		2.774	$	198,001,496	$	2,615,027,253		100.00	%

Page 24

Unencumbered Properties
12/31/2012
Property		# Units		Region	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
Howard Crossing			1,350	Baltimore	MD
Gardencrest			696	Boston	MA
Liberty Place	*		107	Boston	MA
The Commons at Haynes Farm			302	Boston	MA
The Townhomes of Beverly			204	Boston	MA
The Village at Marshfield			276	Boston	MA
Westwoods	*		35	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
Racquet Club South			103	Philadelphia	PA
Waterview			203	Philadelphia	PA
1200 East West Highway			248	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 Courts at Dulles			411	Suburban Washington, DC	VA
The Apts at Cobblestone Square			314	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:			15,676
Total Number of Properties:			47

* Property added to unencumbered pool during quarter ending 12/31/2012.

Page 25

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, community centers, new windows, and kitchen and bath apartment upgrades.  Revenue generating capital improvements are expected to 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 26

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 December 31, 2012 approximately $212 per unit was spent on recurring capital expenditures.  For the twelve months ended December 31, 2012 approximately $848 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 twelve months ended December 31, 2012 as follows:

For the three months ended December 31, 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	$	-	$	-	$	211	$	5	$	211	$	5
Major building improvements		1,334		32		7,671		187		9,005		219
Roof replacements		380		9		163		4		543		13
Site improvements		616		15		3,834		93		4,450		108
Apartment upgrades		1,414		34		12,480		304		13,894		338
Appliances		1,716		42		-		-		1,716		42
Carpeting/flooring		2,237		55		1,342		33		3,579		88
HVAC/mechanicals		800		20		3,442		84		4,242		104
Miscellaneous		205		5		636		15		841		20
Totals	$	8,702	$	212	$	29,779	$	725	$	38,481	$	937

(a) Calculated using the weighted average number of units owned, including 36,214 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 2,018 for the three months ended December 31, 2012.

For the twelve months ended December 31, 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	$	-	$	-	$	1,352	$	34	$	1,352	$	34
Major building improvements		5,221		130		22,085		550		27,306		680
Roof replacements		1,486		37		2,739		68		4,225		105
Site improvements		2,410		60		15,860		395		18,270		455
Apartment upgrades		5,020		125		49,209		1,225		54,229		1,350
Appliances		7,229		180		726		18		7,955		198
Carpeting/flooring		8,755		218		6,494		162		15,249		380
HVAC/mechanicals		3,132		78		11,766		293		14,898		371
Miscellaneous		803		20		3,841		96		4,644		116
Totals	$	34,056	$	848	$	114,072	$	2,841	$	148,128	$	3,689

(a) Calculated using the weighted average number of units owned, including 36,214 core units, 2011 acquisition units of 2,817, and 2012 acquisition units of 1,129 for the twelve months ended December 31, 2012.

Page 27

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 December 31, 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	$	7,677	$	212	$	24,481	$	676	$	32,158	$	888
2012 Acquisition Communities		428		212		2,381		1,180		2,809		1,392
2011 Acquisition Communities		597		212		2,917		1,035		3,514		1,247
Sub-total		8,702		212		29,779		725		38,481		937
2012 Disposed Communities		125		212		2		3		127		215
Corporate office expenditures (b)		-		-		-		-		738		-
	$	8,827	$	212	$	29,781	$	715	$	39,346	$	927

(a) Calculated using the weighted average number of units owned, including 36,214 core units, 2011 acquisition units of 2,817, 2012 acquisition units of 2,018, and 2012 disposed units of 589 for the three months ended December 31, 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 twelve months ended December 31, 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	$	30,710	$	848	$	98,335	$	2,715	$	129,045	$	3,563
2012 Acquisition Communities		957		848		3,482		3,084		4,439		3,932
2011 Acquisition Communities		2,389		848		12,255		4,350		14,644		5,198
Sub-total		34,056		848		114,072		2,841		148,128		3,689
2012 Disposed Communities		1,125		848		717		540		1,842		1,388
Corporate office expenditures (b)		-		-		-		-		2,803		-
	$	35,181	$	848	$	114,789	$	2,767	$	152,773	$	3,615

(a) Calculated using the weighted average number of units owned, including 36,214 core units, 2011 acquisition units of 2,817, 2012 acquisition units of 1,129, and 2012 disposed units of 1,327 for the twelve months ended December 31, 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
	12/31/2012			12/31/2011		Change
Net Operating Income	$	89,658		$	84,276		6.4	%
Less: Non Recurring Cap Ex @ 6%		(1,469	)		-		-
Adjusted Net Operating Income	$	88,189		$	84,276		4.6	%

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.

Page 28

Development Pipeline as of December 31, 2012

($ in thousands)

%

# of

Estimated

Costs

Con-

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)

(4)

Under construction:

Eleven55 Ripley

High Rise

379

111,200

293.4

62,502

4Q 11

3Q 13

1Q 14

0.0

%

n/a

n/a

Silver Spring, MD

Courts at Spring Mill Station

Donut/ Podium

385

89,000

231.2

20,739

2Q 12

1Q 14

2H 14

0.0

%

n/a

n/a

Conshohocken, PA

Pre-construction:

Falkland North  (5)

High Rise

tbd

tbd

tbd

4,762

tbd

tbd

tbd

n/a

n/a

n/a

Silver Spring, MD

Under contract:

Westpark Tysons      (part of Arbor Row final      development plan)  (5)

Mid Rise/ High Rise

600

+

205,000

tbd

890

1H 14

tbd

tbd

n/a

n/a

n/a

Tysons Corner, VA

Total

$

88,893

(1) Costs classified as Construction in Progress at December 31, 2012 are comprised of:

Courts at Spring Mill Station	$	20,739
Eleven55 Ripley		62,502
	$	83,241

(2) Represents the percentage of units that have been completed and are available to rent as of January 31, 2013.

(3) Represents the percentage of units that have been leased as of January 31, 2013.

(4) Represents the percentage of units occupied as of January 31, 2013.

(5) Costs incurred are classified as Other Assets at December 31, 2012 for these projects.

Page 29

2013 Earnings Guidance	First			Second		Third		Fourth
	Quarter			Quarter		Quarter		Quarter		Year
2013 compared to 2012
FFO per share - 2013 guidance	$	1.01 - $1.05		Information for subsequent quarters will						$	4.28 - $4.44
Midpoint of guidance	$	1.03		be provided in future earnings press releases						$	4.36
FFO per share - 2012 actual	$	0.979		$	0.955	$	1.093	$	1.094	$	4.125
Improvement projected		5.2	%								5.7	%
2013 compared to 2012 based on "Operating FFO"
FFO per share - 2013 Operating FFO	$	1.01 - $1.05		Information for subsequent quarters will						$	4.31 - $4.47
Midpoint of guidance	$	1.03		be provided in future earnings press releases						$	4.39
Operating FFO per share - 2012 actual	$	0.979		$	1.000	$	1.094	$	1.094	$	4.170
Improvement projected		5.2	%								5.3	%
Difference between FFO and OFFO is expensed acquisition costs
Same store assumptions:
Same store total revenue growth		4.0	%	Information for subsequent quarters will						3.5% to 4.5%
Same store expense growth		3.6	%	be provided in future earnings press releases						3.0% to 4.0%
Same store NOI growth		4.3	%							3.5% to 4.5%

In 2012, weighted average rent was up 4.2% and economic occupancy was up 0.3%, producing 4.6% base rental growth. Other income slightly decreased, resulting in 4.5% growth in total revenue.

In 2013, we expect weighted average rent will be up 3.8%, with economic occupancy up 0.4%, producing 4.3% base rental growth, only 30 basis points less than 2012.  Other income is expected to decrease, resulting in 4.0% growth in total revenue at the midpoint of guidance.

After four consecutive years of negative expense growth, we expect pressure on certain line items will result in Operating and Maintenance expenses going up 3.0 to 4.0%.  Some of the line items where we expect above average increases include: natural gas heating costs up 4.3%; personnel costs (specifically from health care) up 4.8%; real estate taxes up 4.7%; property insurance up over 18%; and snow removal up more than double.  We experienced extreme mild winters in 2012 which are not expected to repeat in 2013.  This affects heating costs, snow removal, personnel costs and insurance to some extent.

Occupancy assumptions:							Information for subsequent quarters will
Same store 2013 physical occupancy					95.4	%	be provided in future earnings press releases									95.7	%
Same store 2012 physical occupancy					94.9	%		96.0	%		95.5	%		95.4	%	95.4	%
Change in occupancy					0.5	%										0.3	%
Annual growth by region:	2012				2012		2013 Same Store Growth Projection
	%			Total			Total
	of NOI			Revenue			Revenue			Expenses			NOI
Washington, DC		34.0	%		4.5	%		4.5	%		2.6	%		5.5	%
Philadelphia		10.8	%		4.4	%		3.9	%		1.9	%		5.3	%
Boston		8.2	%		5.8	%		4.2	%		3.7	%		4.5	%
Florida		1.3	%		3.2	%		3.6	%		3.7	%		3.5	%
Baltimore		21.8	%		4.3	%		3.7	%		5.0	%		3.1	%
New Jersey/Long Island		19.8	%		4.7	%		3.1	%		5.8	%		1.4	%
Chicago		4.1	%		4.2	%		3.7	%		8.5	%		0.3	%
Total		100.0	%		4.5	%		4.0	%		3.5	%		4.0	%

Page 30

2013 Earnings Guidance

Expense growth rates assumed for the midpoint of guidance for every expense category are as follows:

	% of Total			% Increase
	Expenses			Over 2012
Electricity		3.7	%		3.0	%
Natural gas heating costs		6.3	%		4.3	%
Water and sewer		8.4	%		3.3	%
Repairs and maintenance		14.3	%		1.3	%
Total personnel costs		22.9	%		4.8	%
Real estate taxes		26.2	%		4.7	%
Property insurance		3.7	%		18.2	%
Advertising		2.2	%		1.3	%
Legal & Professional		0.6	%		-34.5	%
Office & telephone		2.6	%		2.4	%
Snow removal		0.4	%		123.7	%
Trash		1.6	%		3.1	%
Property management G & A		7.1	%		-0.3	%
		100.0	%		3.5	%

General & Administrative costs are expected to decrease 14.7% at the midpoint and range between $28.8 million and $29.6 million.  The first two quarters are when we anticipate normal equity grants, pushing the dollar amount up higher in comparison to the year as a whole.  We expect the first quarter to range from $9.4 million to $9.6 million, and the second quarter to range from $7.4 million to $7.6 million.  The last two quarters settle back down to a range of $6.0 million to $6.2 million.

Interest Expense is projected to be $120.3 million to $121.1 million for the year, without significant differences between the quarters.  The secured loans that mature in 2013 have a weighted average interest rate of 6.05%.  Our plan is to pay these off using  the line of credit and unsecured financing.

		First			Second			Third			Fourth
		Quarter			Quarter			Quarter			Quarter			Year
Development NOI 2013 projected run rate - Ripley		$	0		$	0		$	50	K	$	300	K	$	350	K
Acquisition range of $200 million to $300 million.		$	0		$	85	M	$	85	M	$	80	M	$	250	M
Disposition range of $200 million to $300 million		$	130	M	$	40	M	$	40	M	$	40	M	$	250	M
Anticipated expense from acquisition costs for 2013 of $1.9 million versus actual of $2.7 million in 2012.
Development spend of $120 million.
Capital expenditures:
Recurring	$36 million
Upgrading and repositioning	$100 million

Page 31