Home Properties 8K Earnings Release and Supplemental Information | SEC 3 May 13

EXHIBIT 99

Home Properties, Inc.

Earnings Release and Supplemental Information

First Quarter 2013

Table of Contents

	Page
Earnings Release	1-8
Property Results	9-12
Physical Occupancy Comparison by Region	13
Net Operating Results	14
New Lease and Renewal Lease Rents vs. Expiring Lease Rents	15
Resident Statistics	16
Net Operating Income Detail and Seasonality Factor for NAV Calculation	17
Operating Expense Detail	18
Discontinued Operations	19
Summary of Recent Acquisitions	20
Summary of Recent Sales	20
Breakdown of Units	21
Debt Summary Schedule	22-27
Recurring Capital Expenditure and Adjusted NOI Summary	28-29
Development Communities	30
2013 Earnings Guidance	31-32

-i-

FOR IMMEDIATE RELEASE

Home Properties Reports First Quarter 2013 Results

ROCHESTER, N.Y., May 2, 2013 – Home Properties, Inc. (NYSE: HME) today released financial results for the first quarter ended March 31, 2013. All results are reported on a diluted basis.

“Positive rent growth and high occupancy contributed to a solid increase in net operating income in the first quarter, supporting our view that 2013 will be another good year for Home Properties,” said Edward J. Pettinella, Home Properties President and CEO. “The business environment for Home and the multifamily sector in 2013 remains favorable, although we do not expect the record level of earnings growth we experienced in 2012, which was a truly great year.”

Earnings per share ("EPS") for the quarter ended March 31, 2013 was $0.99, compared to $0.31 for the quarter ended March 31, 2012. The $0.68 increase in EPS is primarily attributable to a $40.4 million gain on disposition of property combined with a $5.6 million increase in income from continuing operations from both the properties owned throughout 2012 and 2013 (the “Core” properties) and those acquired, developed, or redeveloped subsequent to January 1, 2012 (the “Non-Core” properties).

For the quarter ended March 31, 2013, Funds From Operations ("FFO") were $66.0 million, or $1.05 per share, compared to $58.4 million, or $0.98 per share, for the quarter ended March 31, 2012, which equates to a 7.5% increase on a per-share basis. A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

First Quarter Operating Results

For the first quarter of 2013, same-property comparisons (for 114 Core properties containing 38,941 apartment units owned since January 1, 2012) reflected an increase in rental income of 4.2% and a 3.7% increase in total revenues compared to the same quarter a year ago. Net operating income (“NOI”) increased by 5.4% from the first quarter of 2012. Property level operating expenses increased by 0.9% compared to the prior year quarter, primarily due to increases in natural gas heating costs, personnel expense, real estate taxes, and snow removal costs, which were partially offset by a decrease in legal and professional costs, office and telephone, and property insurance.

Average physical occupancy for the Core properties was 95.7% during the first quarter of 2013, up from 94.9% during the first quarter of 2012. Average monthly rental rates of $1,277 represent a 3.3% increase compared to the year-ago period.

On a sequential basis, compared to the 2012 fourth quarter results for Core properties, rental income (excluding utility recovery) was up 0.8% in the first quarter of 2013, total revenues increased 1.8%, expenses were up 5.1% and NOI was essentially flat. Average physical occupancy increased 0.2% to 95.7%.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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Physical occupancy for the 3,183 apartment units acquired/developed/redeveloped between January 1, 2012 and March 31, 2013 averaged 88.1% during the first quarter of 2013, at average monthly rents of $1,296.

Acquisitions/Dispositions

There were no acquisitions of apartment communities during the first quarter of 2013.

As previously reported, during the first quarter of 2013, the Company completed two separate sale transactions, totaling 511 units, for $109.1 million, producing approximately $64 million in net proceeds. A gain on sale of approximately $40.4 million was recorded in the first quarter related to these sales. A gain of approximately $1.3 million was deferred pending certain approvals that management anticipates receiving in the second quarter of 2013. The two apartment communities sold were located in the Long Island and Washington, D.C. regions.

Subsequent to the end of the quarter, the Company sold one apartment community in the Philadelphia region with a total of 158 units, for $15 million. A gain on sale of approximately $3.3 million will be recorded in the second quarter of 2013 related to this sale.

Development

On January 8, 2013, the Company purchased land for development located in Tysons Corner, Virginia for $26.9 million. The Company intends to develop a residential community, in multiple phases, which will contain 694 units for an estimated total cost of $232 million. This development has been previously disclosed as Westpark Tysons in the quarterly supplemental information.

Capital Markets Activities

As of March 31, 2013, the Company’s ratio of debt-to-total market capitalization was 40.3% (based on a March 28, 2013 stock price of $63.42 used to determine equity value), with $169 million outstanding on its $275 million revolving credit facility and $8 million of unrestricted cash on hand. Total debt of $2.7 billion was outstanding, at interest rates averaging 4.6% 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.

The Company repaid maturing debt of approximately $60 million during the first quarter on three properties which had a weighted average interest rate of 5.44%. These properties are now part of the unencumbered asset pool.

The Company has an At-The-Market equity offering program through which it may sell up to 4.4 million common shares. During the first quarter of 2013, 407,296 shares were issued at an average price of $63.48 generating gross proceeds of $25.9 million and net proceeds of $25.3 million. Pending trades at the end of March included an additional 52,113 shares issued at an average price of $63.74 generating net proceeds of $3.3 million. Since the current program’s inception, 2,430,233 shares have been issued at an average price of $62.81 generating gross proceeds of $152.6 million and net proceeds of $149.4 million. There are approximately two million common shares that remain available under this program.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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Outlook

Based solely on the actual first quarter results as compared to expectations, the Company has increased the midpoint of its prior guidance by two cents to $4.38 and the range of FFO per share to $4.32 to $4.44. The guidance range of both FFO and Operating FFO per share results for the second quarter of 2013 is $1.07 to $1.11. The Company expects to include additional commentary on projected results for the balance of the year when it announces second quarter 2013 financial results.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.70 per share for the quarter ended March 31, 2013. The dividend is payable on May 24, 2013 to shareholders of record on May 14, 2013 and is equivalent to an annualized rate of $2.80 per share. The current annual dividend represents a 4.3% yield based on the April 29 closing price of $64.48. Home Properties’ common stock will begin trading ex-dividend on May 10, 2013.

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.

First Quarter 2013 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 homeproperties.com. For live audio-only participation, please dial 800-913-1647 (International 212-231-2900).

Second Quarter 2013 Conference/Event Schedule

Home Properties is scheduled to participate in REITWeek 2013:® NAREIT's Investor Forum® from June 5-7, 2013 in Chicago. Management will present information and answer questions about its operations on Wednesday, June 5, from 11:45 AM-12:15 PM CT. The audio presentation and related materials will be available at homeproperties.com in the “Investors” section. Details on how to access any presentation or related materials will be available at homeproperties.com in the “Investors” section.

Second Quarter 2013 Earnings Release and Conference Call

The Company’s second quarter 2013 financial results are scheduled to be released after the stock market closes on Thursday, August 1, 2013. A conference call, which will be simultaneously webcast, is scheduled for Friday, August 2, 2013 at 11:00 AM ET and will be accessible following the instructions for the current quarter's conference call.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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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 apartment real estate investment trust 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 118 communities containing 41,966 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
First Quarter Results:	Occupancy(a)						1Q 2013		1Q 2013 vs. 1Q 2012 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
	1Q 2013			1Q 2012			Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.7	%		94.9	%	$	1,277		3.3	%		3.7	%		0.9	%		5.4	%
Non-Core Properties(c)		88.1	%	NA			$	1,296	NA			NA			NA			NA
TOTAL PORTFOLIO		95.1	%	NA			$	1,278	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 114 properties with 38,941 apartment units owned throughout 2012 and 2013.

(c)	Non-Core Properties consist of 5 properties with 3,183 apartment units acquired, developed, or redeveloped subsequent to January 1, 2012, such that full year comparable operating results are not available.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended
	March 31
	2013			2012
Rental income	$	152,143		$	138,762
Property other income		14,688			14,451
Other income		249			10
Total revenues		167,080			153,223
Operating and maintenance		62,010			58,727
General and administrative		9,082			8,312
Interest		30,623			30,460
Depreciation and amortization		42,811			38,808
Other expenses		17			18
Total expenses		144,543			136,325
Income from continuing operations		22,537			16,898
Discontinued operations
Income (loss) from discontinued operations		(570	)		1,888
Gain on disposition of property		40,359			-
Discontinued operations		39,789			1,888
Net income		62,326			18,786
Net income attributable to noncontrolling interest		(10,446	)		(3,398	)
Net income attributable to common stockholders	$	51,880		$	15,388
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income available to common stockholders	$	51,880		$	15,388
Real property depreciation and amortization		42,665			39,658
Noncontrolling interest		10,446			3,398
Gain on disposition of property		(40,359	)		-
FFO - basic and diluted, as defined by NAREIT		64,632			58,444
Loss from early extinguishment of debt in connection with sale of real estate		1,416			-
FFO - basic and diluted (1)	$	66,048		$	58,444

(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 adds back debt extinguishment costs and other one-time costs incurred as a result of repaying property specific debt triggered upon sale of a 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.

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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended
	March 31
	2013			2012
FFO – basic and diluted	$	66,048		$	58,444
FFO – basic and diluted	$	66,048		$	58,444
Acquisition costs of closed deals included in other expenses		17			18
Operating FFO (2)	$	66,065		$	58,462
FFO – basic and diluted	$	66,048		$	58,444
Recurring non-revenue generating capital expenses		(9,034	)		(8,900	)
AFFO (3)	$	57,014		$	49,544
Operating FFO	$	66,065		$	58,462
Recurring non-revenue generating capital expenses		(9,034	)		(8,900	)
Operating AFFO (2) (3)	$	57,031		$	49,562
Weighted average shares/units outstanding:
Shares – basic		51,618.7			48,334.5
Shares – diluted		52,325.4			49,013.0
Shares/units – basic (4)		62,045.9			59,037.5
Shares/units – diluted (4)		62,752.6			59,716.1
Per share/unit:
Net income – basic	$	1.01		$	0.32
Net income – diluted	$	0.99		$	0.31
FFO – basic	$	1.06		$	0.99
FFO – diluted	$	1.05		$	0.98
Operating FFO (2)	$	1.05		$	0.98
AFFO (3)	$	0.91		$	0.83
Operating AFFO (2) (3)	$	0.91		$	0.83
Common Dividend paid	$	0.70		$	0.66

(2)	Operating FFO is defined as FFO as 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 per apartment unit. 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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Home Properties Reports First Quarter 2013 Results

For Immediate Release: May 2, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	March 31, 2013			December 31, 2012
Land	$	781,105		$	791,604
Construction in progress		130,392			83,241
Buildings, improvements and equipment		4,537,478			4,580,381
		5,448,975			5,455,226
Accumulated depreciation		(1,133,012	)		(1,108,840	)
Real estate, net		4,315,963			4,346,386

Cash and cash equivalents		8,090			21,092
Cash in escrows		34,744			26,971
Accounts receivable		15,389			13,406
Prepaid expenses		14,944			19,504
Deferred charges		12,539			13,429
Other assets		4,885			10,704
Total assets	$	4,406,554		$	4,451,492
Mortgage notes payable	$	2,054,926		$	2,165,027
Unsecured notes payable		450,000			450,000
Unsecured line of credit		169,000			162,500
Accounts payable		28,868			22,691
Accrued interest payable		11,828			9,974
Accrued expenses and other liabilities		30,003			33,887
Security deposits		18,805			19,146
Total liabilities		2,763,430			2,863,225

Common stockholders’ equity		1,370,426			1,320,968
Noncontrolling interest		272,698			267,299
Total equity		1,643,124			1,588,267
Total liabilities and equity	$	4,406,554		$	4,451,492

Total shares/units outstanding:
Common stock		52,103.1			51,508.1
Operating partnership units		10,411.1			10,455.6
		62,514.2			61,963.7

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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Property Results

First Quarter 2013															1Q '13 Versus 1Q '12
			1Q '13												% Growth												1Q '13
	# of		Company			Date	1Q '13		1Q '13			1Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired	Rent/Mo		Occup			Occup			Rates(2)			Revenue			Expense			NOI			% NOI (1)
Baltimore
Annapolis Roads		282				6/17/2010	$	1,294		92.9	%		95.1	%		3.2	%		2.8	%		(7.1	%)		8.2	%
Bonnie Ridge		960				7/1/1999		1,156		94.0	%		95.5	%		2.8	%		0.9	%		3.0	%		(0.2	%)
Canterbury		618				7/15/1999		1,027		94.2	%		94.1	%		3.6	%		1.3	%		(0.3	%)		2.1	%
Charleston Place		858				9/30/2010		1,214		95.2	%		96.0	%		4.8	%		5.0	%		4.4	%		5.2	%
Country Village		344				4/30/1998		1,043		95.0	%		95.9	%		1.4	%		0.3	%		3.4	%		(1.5	%)
Dunfield		312				11/1/2007		1,224		95.9	%		95.7	%		3.2	%		4.8	%		(2.6	%)		8.2	%
Fox Hall		720				3/28/2007		909		92.6	%		94.4	%		2.7	%		(3.9	%)		(2.2	%)		(5.3	%)
Gateway Village		132				7/15/1999		1,393		95.4	%		93.9	%		1.7	%		2.3	%		6.0	%		0.5	%
Heritage Woods		164				10/4/2006		1,185		94.8	%		95.1	%		(0.3	%)		(1.4	%)		2.0	%		(3.0	%)
Howard Crossing		1,350				6/28/2012		1,125		93.8	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke		208				4/1/2010		991		95.1	%		94.8	%		1.5	%		4.2	%		0.2	%		6.5	%
Mill Towne Village		384				5/31/2001		944		97.4	%		94.9	%		3.4	%		5.0	%		(4.6	%)		10.5	%
Morningside Heights		1,050				4/30/1998		951		94.3	%		91.6	%		3.4	%		5.2	%		(5.9	%)		11.5	%
Owings Run		504				7/15/1999		1,291		94.7	%		94.9	%		3.0	%		3.6	%		2.7	%		3.9	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,225		97.4	%		97.2	%		1.6	%		2.6	%		(0.8	%)		4.5	%
Saddle Brooke		468				10/29/2008		1,135		92.6	%		94.6	%		6.0	%		5.7	%		3.7	%		6.7	%
Selford		102				7/15/1999		1,449		95.6	%		96.1	%		4.0	%		3.0	%		(0.6	%)		4.6	%
The Apts. at Cambridge Court		544				8/23/2011		1,367		91.5	%		91.7	%		3.3	%		2.6	%		(1.5	%)		4.9	%
The Coves at Chesapeake		469				11/20/2006		1,319		94.8	%		93.1	%		4.3	%		6.3	%		(3.9	%)		10.9	%
The Greens at Columbia		168				7/29/2010		1,456		95.0	%		95.6	%		4.1	%		3.4	%		5.3	%		2.7	%
Top Field		156				10/4/2006		1,332		96.9	%		94.3	%		2.6	%		3.3	%		(4.1	%)		6.4	%
Village Square		370				7/15/1999		1,209		95.8	%		95.7	%		2.1	%		2.3	%		5.3	%		1.0	%
Westbrooke		110				4/1/2010		893		97.4	%		95.6	%		5.5	%		8.4	%		0.3	%		15.3	%
Total Baltimore		10,477		24.9	%		$	1,143		94.4	%		94.5	%		3.3	%		2.9	%		(0.2	%)		4.4	%		23.4	%

Boston
Gardencrest		695				6/28/2002	$	1,668		96.6	%		96.2	%		4.3	%		4.1	%		10.8	%		0.7	%
Highland House		172				5/31/2006		1,282		95.7	%		97.4	%		5.4	%		2.3	%		(2.4	%)		6.6	%
Liberty Commons		120				8/30/2006		1,300		95.9	%		96.3	%		1.3	%		3.0	%		4.8	%		2.2	%
Liberty Place		107				6/6/2006		1,521		95.0	%		96.2	%		2.7	%		3.7	%		2.3	%		4.8	%
Redbank Village		500				7/8/1998		954		95.5	%		97.6	%		3.0	%		0.8	%		4.3	%		(1.3	%)
Stone Ends		280				2/12/2003		1,328		97.4	%		94.5	%		2.9	%		7.2	%		(14.0	%)		25.5	%
The Commons at Haynes Farm		302				7/15/2011		1,330		97.2	%		95.8	%		5.5	%		8.0	%		23.6	%		(0.1	%)
The Heights at Marlborough		348				9/7/2006		1,282		95.4	%		93.3	%		5.5	%		7.1	%		(8.9	%)		21.5	%
The Meadows at Marlborough		264				9/7/2006		1,239		96.9	%		93.8	%		5.1	%		7.8	%		(5.0	%)		19.6	%
The Townhomes of Beverly		204				2/15/2007		1,585		97.5	%		96.7	%		5.0	%		5.5	%		4.0	%		6.3	%
The Village at Marshfield		276				3/17/2004		1,233		96.2	%		95.7	%		4.9	%		3.2	%		(17.2	%)		22.0	%
Westwoods		35				4/30/2007		1,376		98.6	%		94.6	%		6.9	%		9.8	%		(17.9	%)		43.4	%
Total Boston		3,303		7.8	%		$	1,342		96.4	%		95.8	%		4.3	%		4.9	%		0.3	%		7.9	%		7.8	%

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First Quarter 2013															1Q '13 Versus 1Q '12
			1Q '13												% Growth												1Q '13
	# of		Company			Date	1Q '13		1Q '13			1Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired	Rent/Mo		Occup			Occup			Rates(2)			Revenue			Expense			NOI			% NOI (1)
Chicago
Blackhawk		371				10/20/2000	$	907		95.9	%		95.3	%		2.3	%		4.6	%		(0.2	%)		9.6	%
Courtyards Village		224				8/29/2001		911		98.2	%		96.9	%		4.2	%		4.8	%		(2.3	%)		10.9	%
Cypress Place		192				12/27/2000		1,039		98.2	%		96.7	%		5.4	%		7.4	%		1.3	%		12.2	%
Lakeview Townhomes		120				10/18/2010		1,241		96.2	%		94.0	%		3.7	%		5.7	%		11.4	%		1.9	%
The Colony		783				9/1/1999		912		97.1	%		96.5	%		3.1	%		3.4	%		(4.6	%)		10.2	%
The Gates of Deer Grove		204				12/15/2011		1,043		95.8	%		92.2	%		0.4	%		5.7	%		8.2	%		3.5	%
The New Colonies		672				6/23/1998		769		96.3	%		95.6	%		(0.2	%)		2.1	%		8.1	%		(2.6	%)
Total Chicago		2,566		6.1	%		$	909		96.8	%		95.6	%		2.3	%		4.1	%		1.6	%		6.2	%		4.0	%

Florida
The Hamptons		668				7/7/2004	$	1,037		93.4	%		93.7	%		4.2	%		5.5	%		(9.3	%)		23.7	%
Vinings at Hampton Village		168				7/7/2004		1,160		96.3	%		95.6	%		4.2	%		4.6	%		(10.4	%)		22.7	%
Total Florida		836		2.0	%		$	1,062		94.0	%		94.1	%		4.2	%		5.3	%		(9.5	%)		23.5	%		1.4	%

Long Island
Bayview / Colonial		160				11/1/2000	$	1,340		98.9	%		99.1	%		3.8	%		5.1	%		16.4	%		(2.5	%)
Cambridge Village		82				3/1/2002		1,912		98.7	%		98.0	%		3.3	%		3.4	%		0.9	%		5.0	%
Crescent Club		257				9/30/2010		1,378		95.7	%		93.0	%		4.3	%		7.0	%		1.2	%		11.5	%
Devonshire Hills		656				7/16/2001		1,651		96.6	%		96.5	%		2.0	%		(0.0	%)		2.4	%		(1.4	%)
Hawthorne Court		434				4/4/2002		1,494		97.2	%		97.0	%		1.9	%		2.6	%		2.4	%		2.8	%
Heritage Square		80				4/4/2002		1,865		99.5	%		98.9	%		3.9	%		4.1	%		(7.8	%)		13.4	%
Holiday Square		144				5/31/2002		1,303		99.6	%		97.9	%		4.1	%		5.9	%		3.0	%		8.1	%
Lake Grove		368				2/3/1997		1,529		96.5	%		97.0	%		3.7	%		4.1	%		(0.6	%)		7.2	%
Mid-Island Estates		232				7/1/1997		1,483		97.3	%		98.4	%		2.9	%		(0.1	%)		6.9	%		(4.6	%)
Sayville Commons		342				7/15/2005		1,662		97.7	%		96.3	%		3.2	%		4.8	%		5.6	%		4.1	%
Southern Meadows		452				6/29/2001		1,502		96.1	%		95.5	%		4.1	%		5.7	%		3.6	%		7.3	%
Westwood Village		242				3/1/2002		2,547		95.1	%		95.2	%		4.4	%		5.4	%		4.5	%		6.1	%
Woodmont Village		97				3/1/2002		1,392		95.6	%		97.6	%		2.8	%		(1.4	%)		0.8	%		(2.6	%)
Yorkshire Village		40				3/1/2002		1,985		97.9	%		97.6	%		6.0	%		8.9	%		(2.1	%)		22.0	%
Total Long Island		3,586		8.5	%		$	1,611		96.8	%		96.5	%		3.3	%		3.4	%		3.1	%		3.7	%		10.1	%

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First Quarter 2013															1Q '13 Versus 1Q '12
			1Q '13												% Growth												1Q '13
	# of		Company			Date	1Q '13		1Q '13			1Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired	Rent/Mo		Occup			Occup			Rates(2)			Revenue			Expense			NOI			% NOI (1)
New Jersey
Barrington Gardens		148				3/1/2005	$	1,346		97.9	%		95.9	%		7.6	%		6.3	%		(13.0	%)		20.3	%
Chatham Hill		308				1/30/2004		1,946		92.8	%		92.9	%		5.9	%		4.3	%		3.2	%		4.8	%
East Hill Gardens		33				7/8/1998		1,602		100.0	%		98.2	%		0.4	%		1.7	%		(0.3	%)		2.9	%
Hackensack Gardens		198				3/1/2005		1,202		97.3	%		96.4	%		4.3	%		3.7	%		0.7	%		6.4	%
Jacob Ford Village		270				2/15/2007		1,375		97.9	%		99.2	%		6.1	%		2.3	%		(5.8	%)		6.8	%
Lakeview		106				7/8/1998		1,459		98.2	%		96.6	%		3.2	%		6.6	%		(5.5	%)		16.8	%
Northwood		134				1/30/2004		1,416		96.3	%		96.0	%		3.1	%		3.0	%		(0.8	%)		6.7	%
Oak Manor		77				7/8/1998		1,961		98.0	%		97.5	%		6.0	%		4.7	%		(2.0	%)		8.3	%
Pleasant View		1,142				7/8/1998		1,208		96.5	%		94.7	%		2.3	%		3.5	%		(0.3	%)		6.4	%
Pleasure Bay		270				7/8/1998		1,104		97.2	%		95.4	%		4.0	%		5.5	%		3.4	%		7.3	%
Royal Gardens		550				5/28/1997		1,307		95.1	%		96.1	%		2.5	%		1.7	%		0.6	%		2.6	%
Wayne Village		275				7/8/1998		1,468		97.1	%		97.3	%		2.8	%		2.2	%		(2.2	%)		4.8	%
Windsor Realty		67				7/8/1998		1,333		97.9	%		95.5	%		2.0	%		2.5	%		7.4	%		(1.6	%)
Total New Jersey		3,578		8.5	%		$	1,354		96.3	%		95.7	%		3.7	%		3.5	%		(0.7	%)		6.3	%		8.6	%

Philadelphia
Castle Club		158				3/15/2000	$	994		96.4	%		96.6	%		(1.0	%)		(0.5	%)		(4.0	%)		2.5	%
Glen Manor		174				9/23/1997		829		95.9	%		95.6	%		0.9	%		2.4	%		6.7	%		(2.0	%)
Golf Club		399				3/15/2000		1,155		95.7	%		94.8	%		3.4	%		2.2	%		(3.2	%)		5.4	%
Hill Brook Place		274				7/28/1999		947		94.5	%		94.7	%		2.2	%		4.2	%		(0.4	%)		8.9	%
Home Properties of Bryn Mawr		316				3/15/2000		1,472		98.4	%		98.4	%		6.3	%		6.1	%		9.2	%		4.7	%
Home Properties of Devon		631				3/15/2000		1,268		96.8	%		93.3	%		5.4	%		7.5	%		(5.6	%)		15.7	%
New Orleans Park		442				7/28/1999		908		93.3	%		94.3	%		2.6	%		1.4	%		(0.6	%)		3.6	%
Racquet Club East		466				7/7/1998		1,125		96.1	%		95.1	%		2.2	%		3.2	%		2.1	%		4.0	%
Racquet Club South		103				5/27/1999		953		93.9	%		95.1	%		1.8	%		0.5	%		4.8	%		(3.7	%)
Ridley Brook		244				7/28/1999		984		95.3	%		96.1	%		2.9	%		1.4	%		3.7	%		(0.7	%)
Sherry Lake		298				7/23/1998		1,314		95.4	%		97.7	%		6.2	%		3.7	%		(0.8	%)		6.2	%
The Brooke at Peachtree Village		146				8/15/2005		1,222		98.3	%		97.7	%		5.8	%		7.5	%		0.0	%		12.0	%
The Landings		384				11/22/1996		1,108		96.7	%		95.7	%		6.2	%		5.2	%		4.0	%		6.1	%
Trexler Park		250				3/15/2000		1,141		95.0	%		93.2	%		3.8	%		2.7	%		7.0	%		0.1	%
Trexler Park West		216				8/15/2008		1,380		97.7	%		95.5	%		3.6	%		6.6	%		0.7	%		9.5	%
Waterview		203				7/14/2011		1,077		93.9	%		92.0	%		2.4	%		7.5	%		(10.9	%)		23.4	%
William Henry		363				3/15/2000		1,213		94.5	%		94.9	%		3.0	%		(4.6	%)		(17.0	%)		5.2	%
Total Philadelphia		5,067		12.0	%		$	1,142		95.9	%		95.2	%		3.8	%		3.6	%		(1.3	%)		6.9	%		11.1	%

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First Quarter 2013															1Q '13 Versus 1Q '12
			1Q '13												% Growth												1Q '13
	# of		Company			Date	1Q '13		1Q '13			1Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired	Rent/Mo		Occup			Occup			Rates(2)			Revenue			Expense			NOI			% NOI (1)
Washington, D.C.
1200 East West		247				5/11/2010	$	1,890		96.4	%		96.8	%		0.9	%		(0.2	%)		44.6	%		(18.4	%)
Arbor Park of Alexandria		851				Redevelopment		1,542		75.3	%		79.2	%		8.4	%		2.7	%		1.1	%		3.6	%
Braddock Lee		255				3/13/1998		1,425		97.2	%		97.5	%		4.5	%		4.3	%		8.4	%		2.0	%
Cider Mill		864				9/27/2002		1,218		95.9	%		95.8	%		3.6	%		2.7	%		(5.2	%)		9.1	%
Cinnamon Run		511				12/28/2005		1,285		92.6	%		93.8	%		2.0	%		(1.0	%)		1.3	%		(2.1	%)
Courts at Huntington Station		421				6/15/2011		1,993		94.9	%		74.2	%		(1.6	%)		23.5	%		10.3	%		31.0	%
East Meadow		150				8/1/2000		1,454		96.5	%		97.9	%		4.8	%		(0.1	%)		12.0	%		(6.2	%)
Elmwood Terrace		504				6/30/2000		988		95.8	%		95.8	%		4.3	%		5.3	%		7.0	%		4.0	%
Hunters Glen		108				4/19/2011		1,011		93.1	%		96.7	%		5.8	%		2.5	%		11.2	%		(2.2	%)
Mount Vernon Square		1,387				12/27/2006		1,323		94.6	%		93.0	%		4.1	%		5.9	%		4.7	%		6.5	%
Newport Village		937				10/17/2011		1,554		96.0	%		93.1	%		0.4	%		3.3	%		1.1	%		4.4	%
Park Shirlington		294				3/13/1998		1,419		95.7	%		97.6	%		4.5	%		0.5	%		3.5	%		(1.2	%)
Peppertree Farm		879				12/28/2005		1,257		92.3	%		94.5	%		1.9	%		0.6	%		2.5	%		(0.4	%)
Seminary Hill		296				7/1/1999		1,402		97.2	%		97.0	%		4.1	%		4.2	%		3.8	%		4.5	%
Seminary Towers		544				7/1/1999		1,469		96.4	%		94.8	%		3.7	%		3.3	%		5.5	%		2.0	%
Somerset Park		108				10/11/2011		1,505		97.5	%		96.9	%		5.8	%		5.4	%		3.4	%		6.5	%
Tamarron		132				7/15/1999		1,640		95.7	%		95.4	%		5.4	%		6.9	%		(5.3	%)		11.8	%
The Apts. at Cobblestone Square		314				6/14/2012		1,301		94.5	%		n/a			n/a			n/a			n/a			n/a
The Apts. at Wellington Trace		240				3/2/2004		1,411		96.2	%		97.1	%		3.0	%		3.8	%		(2.7	%)		6.6	%
The Courts at Dulles		411				11/30/2011		1,549		95.6	%		91.7	%		0.6	%		4.2	%		2.6	%		5.1	%
The Courts at Fair Oaks		364				9/30/2010		1,533		97.7	%		96.8	%		4.3	%		5.3	%		7.0	%		4.7	%
The Manor - MD		435				8/31/2001		1,334		96.2	%		94.8	%		2.3	%		4.0	%		(4.4	%)		8.7	%
The Manor - VA		198				2/19/1999		1,134		93.7	%		97.1	%		4.8	%		(0.5	%)		(5.1	%)		2.6	%
The Manor East		164				5/11/2012		1,099		90.5	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185				12/16/2002		1,475		96.4	%		97.1	%		4.3	%		3.8	%		13.8	%		(0.8	%)
Village at Potomac Falls		247				8/5/2010		1,428		97.1	%		96.3	%		5.4	%		6.0	%		1.5	%		8.5	%
Virginia Village		344				5/31/2001		1,442		97.3	%		95.0	%		3.5	%		2.8	%		(12.0	%)		11.3	%
West Springfield		244				11/18/2002		1,573		96.6	%		95.2	%		2.8	%		2.5	%		3.3	%		2.1	%
Westchester West		345				12/30/2008		1,368		91.8	%		93.8	%		4.9	%		1.5	%		3.7	%		0.3	%
Woodleaf		228				3/19/2004		1,284		97.0	%		96.3	%		0.1	%		(2.4	%)		(11.6	%)		1.7	%
Woodway at Trinity Centre		504				5/17/2012		1,404		95.4	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		12,711		30.2	%		$	1,399		95.4	%		93.7	%		2.8	%		4.0	%		3.1	%		4.5	%		33.6	%

Total Properties		42,124		100.0	%		$	1,278		95.1	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		38,941					$	1,277		95.7	%		94.9	%		3.3	%		3.7	%		0.9	%		5.4	%

(1)	Represents the percentage of the Company's total Units/NOI attributed to each region, including Core and Non-Core Properties.

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

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Physical Occupancy Comparison by Region - Core Properties

Sequential Comparison
First Quarter 2013 vs. Fourth Quarter 2012
Region	% Units			1Q '13			4Q '12			Variance
Baltimore		23.4	%		94.4	%		94.1	%		0.3	%
Boston		8.5	%		96.4	%		95.8	%		0.6	%
Chicago		6.6	%		96.8	%		95.3	%		1.5	%
Florida		2.2	%		94.0	%		94.6	%		(0.6	%)
Long Island, New Jersey		18.4	%		96.6	%		97.0	%		(0.4	%)
Philadelphia		13.0	%		95.9	%		95.0	%		0.9	%
Washington, D.C.		27.9	%		95.4	%		95.1	%		0.3	%

Total Core		100.0	%		95.7	%		95.4	%		0.3	%


Year over Year Comparison
First Quarter 2013 vs. First Quarter 2012
Region	% Units			1Q '13			1Q '12			Variance
Baltimore		23.4	%		94.4	%		94.5	%		(0.1	%)
Boston		8.5	%		96.4	%		95.8	%		0.6	%
Chicago		6.6	%		96.8	%		95.6	%		1.2	%
Florida		2.2	%		94.0	%		94.1	%		(0.1	%)
Long Island, New Jersey		18.4	%		96.6	%		96.1	%		0.5	%
Philadelphia		13.0	%		95.9	%		95.2	%		0.7	%
Washington, D.C.		27.9	%		95.4	%		93.7	%		1.7	%

Total Core		100.0	%		95.7	%		94.9	%		0.8	%


March vs. Quarter Comparison
Region	% Units			Mar '13			1Q '13			Variance
Baltimore		23.4	%		94.6	%		94.4	%		0.2	%
Boston		8.5	%		97.3	%		96.4	%		0.9	%
Chicago		6.6	%		97.2	%		96.8	%		0.4	%
Florida		2.2	%		94.7	%		94.0	%		0.7	%
Long Island, New Jersey		18.4	%		96.7	%		96.6	%		0.1	%
Philadelphia		13.0	%		96.1	%		95.9	%		0.2	%
Washington, D.C.		27.9	%		95.3	%		95.4	%		(0.1	%)

Total Core		100.0	%		95.8	%		95.7	%		0.1	%

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Table of Contents

Net Operating Results - Core Properties

Sequential Results
First Quarter 2013 vs. Fourth Quarter 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.4	%		1.0	%		1.9	%		0.7	%		2.5	%
Boston		8.5	%		1.0	%		1.3	%		10.3	%		(3.6	%)
Chicago		6.6	%		2.0	%		3.2	%		9.8	%		(1.6	%)
Florida		2.2	%		1.6	%		2.4	%		5.5	%		(0.2	%)
Long Island, New Jersey		18.4	%		0.1	%		0.9	%		13.1	%		(6.0	%)
Philadelphia		13.0	%		1.2	%		3.3	%		2.5	%		3.8	%
Washington, D.C.		27.9	%		0.7	%		1.6	%		1.0	%		1.9	%

Total Core		100.0	%		0.8	%		1.8	%		5.1	%		(0.1	%)


Year over Year Results
First Quarter 2013 vs. First Quarter 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.4	%		3.4	%		2.9	%		(0.2	%)		4.4	%
Boston		8.5	%		4.8	%		4.9	%		0.3	%		7.9	%
Chicago		6.6	%		4.1	%		4.1	%		1.6	%		6.2	%
Florida		2.2	%		6.3	%		5.3	%		(9.5	%)		23.5	%
Long Island, New Jersey		18.4	%		3.9	%		3.4	%		1.4	%		4.9	%
Philadelphia		13.0	%		4.8	%		3.6	%		(1.3	%)		6.9	%
Washington, D.C.		27.9	%		4.5	%		4.0	%		3.1	%		4.5	%

Total Core		100.0	%		4.2	%		3.7	%		0.9	%		5.4	%

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

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Table of Contents

Percentage Change in New Lease and Renewal Lease Rents Compared to

Expiring Lease Rents - Core Properties

	1Q '12						2Q '12						3Q '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	%

Long Island, New Jersey		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	%


	1Q '13
Region	New			Renewal
Baltimore		1.6	%		3.7	%

Boston		1.9	%		3.4	%

Chicago		0.5	%		3.0	%

Florida		4.6	%		4.3	%

Long Island, New Jersey		3.8	%		3.1	%

Philadelphia		(0.4	%)		2.9	%

Washington, D.C.		(0.3	%)		4.1	%

Total Core		1.3	%		3.6	%

Page 15

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Resident Statistics

Top Six Reasons for Moveouts
				1Q '13			4Q '12			3Q '12			2Q '12			1Q '12			Year '12			Year '11			Year '10
Eviction, skip					14.9	%		14.3	%		12.7	%		12.8	%		16.9	%		14.2	%		16.4	%		15.6	%

Employment related					14.7	%		14.1	%		12.5	%		13.4	%		12.6	%		13.2	%		13.4	%		13.9	%

Transfer within HME					14.1	%		13.3	%		12.5	%		11.5	%		15.0	%		13.1	%		11.6	%		12.3	%

Location, apartment size					12.3	%		12.1	%		13.0	%		13.5	%		11.7	%		12.6	%		13.1	%		12.1	%

Home purchase					11.2	%		13.0	%		11.2	%		11.2	%		9.6	%		11.3	%		10.4	%		11.0	%

Rent level					9.9	%		10.5	%		11.0	%		10.8	%		11.0	%		10.8	%		10.5	%		10.0	%


Traffic - Core Properties							Turnover - Core Properties
				Signed
	Traffic			Leases
	1Q '13			1Q '13
	vs.			vs.
Region	1Q '12			1Q '12			1Q '13			1Q '12
Baltimore		(8.8	%)		(6.6	%)		7.9	%		8.7	%
Boston		15.1	%		18.3	%		8.6	%		6.7	%
Chicago		0.7	%		7.7	%		9.5	%		10.2	%
Florida		(22.9	%)		(19.5	%)		10.2	%		12.2	%
Long Island		6.5	%		(4.4	%)		7.3	%		6.8	%
New Jersey		(1.1	%)		11.5	%		7.7	%		8.1	%
Philadelphia		(6.2	%)		(1.9	%)		8.5	%		7.8	%
Washington, D.C.		(13.4	%)		(4.2	%)		7.5	%		7.9	%

Total Core		(5.3	%)		(1.2	%)		8.0	%		8.1	%


Bad Debt as % of Rent and Utility Recovery
	1Q '13			1Q '12
Total Core		0.91	%		0.96	%

Page 16

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Net Operating Income Detail

($ in thousands, except per unit data)

Core Properties
							Qtr			%
	1Q '13			1Q '12			Variance			Variance
Rent	$	141,296		$	135,570		$	5,726			4.2	%
Utility recovery		7,245			7,166			79			1.1	%
Rent including recoveries		148,541			142,736			5,805			4.1	%
Other income		6,675			6,947			(272	)		(3.9	%)
Total income		155,216			149,683			5,533			3.7	%
Operating & maintenance		(57,823	)		(57,319	)		(504	)		(0.9	%)
Core Properties NOI	$	97,393		$	92,364		$	5,029			5.4	%

Physical Occupancy		95.7	%		94.9	%		0.8	%

Weighted Avg Rent per Unit	$	1,277		$	1,236		$	41			3.3	%

Acquired Properties (1)				Redevelopment Property (2)
	1Q '13				1Q '13
Rent	$	7,896		Rent	$	2,951
Utility recovery		223		Utility recovery		166
Rent including recoveries		8,119		Rent including recoveries		3,117
Other income		276		Other income		103
Total income		8,395		Total income		3,220
Operating & maintenance		(2,969	)	Operating & maintenance		(1,218	)
Acquired Properties NOI	$	5,426		Redevelopment Property NOI	$	2,002

Physical Occupancy		94.1	%	Physical Occupancy		75.3	%

Weighted Avg Rent per Unit	$	1,207		Weighted Avg Rent per Unit	$	1,542

(1)	Acquired Properties consist of both acquired and stabilized development properties subsequent to January 1, 2012, such that full year operating results are not available.

(2)	The Redevelopment Property is Arbor Park of Alexandria, where 851 units in 52 buildings commenced renovation in 2011 on a building by building basis.

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 25.0%. This will adjust for the typical seasonal variability in NOI for each quarter.

Page 17

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Operating Expense Detail - Core Properties

($ in thousands)

					Qtr			%
	1Q '13		1Q '12		Variance			Variance
Electricity	$	2,011	$	2,205	$	(194	)		(8.8	%)
Gas		6,163		5,928		235			4.0	%
Water & sewer		4,503		4,484		19			0.4	%
Repairs & maintenance		6,234		6,297		(63	)		(1.0	%)
Personnel expense		13,670		12,678		992			7.8	%
Advertising		1,118		1,160		(42	)		(3.6	%)
Legal & professional		387		616		(229	)		(37.2	%)
Office & telephone		1,597		1,890		(293	)		(15.5	%)
Property insurance		1,110		2,315		(1,205	)		(52.1	%)
Real estate taxes		15,212		14,244		968			6.8	%
Snow		843		279		564			202.2	%
Trash		840		889		(49	)		(5.5	%)
Property management G&A		4,135		4,334		(199	)		(4.6	%)
Total Core	$	57,823	$	57,319	$	504			0.9	%

Page 18

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Discontinued Operations (1)

($ in thousands)

The operating results of discontinued operations are summarized as follows for the three months ended March 31, 2013 and 2012:

	1Q '13			1Q '12
Revenues:
Rental income	$	2,002		$	6,432
Property other income		210			662
Total revenues		2,212			7,094
Expenses:
Operating and maintenance		674			2,544
Interest (2)		1,740			1,065
Depreciation and amortization		368			1,597
Total expenses		2,782			5,206
Income (loss) from discontinued operations	$	(570	)	$	1,888

(1)	Discontinued operations consists of two properties (424 units) disposed in 3Q '12, four properties (1,172 units) disposed in 4Q '12 and two properties (511 units) disposed in 1Q '13.

(2)	Includes debt extinguishment costs and other one-time costs of $1,416 incurred as a result of repaying property specific debt triggered upon sale for the three months ended March 31, 2013.

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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
2013 Acquisitions
			Total 2013		-				$	-
2012 Acquisitions
The Manor East	Washintgon, D.C.	VA	5/11/2012		164		7.0	%	$	16.2	$	98,780
Woodway at Trinity Centre	Washington, 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

	Total 2013 and 2012 Acquisitions				2,018		5.9	%	$	298.2	$	147,770

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

Summary of Recent Sales

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

											Wtd Avg
			Sale	# of		Cap (2)			Sales		Price per
Community	Region	State	Date	Units		Rate			Price		Unit
2013 Sales
South Bay Manor	Long Island	NY	3/14/2013		61		6.4	%	$	11.1	$	181,967
Falkland Chase	Washington, D.C.	MD	3/29/2013		450		5.5	%		98.0		217,778
Sold after the close of the 1st quarter
Castle Club	Philadelphia	PA	4/10/2013		158		7.2	%		15.0		94,937
			Total 2013		669		5.8	%	$	124.1	$	185,501
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

	Total 2013 and 2012 Sales				2,265		6.1	%	$	283.7	$	125,253

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

Page 20

Table of Contents

Breakdown of Units

				Net								Net
				Acquired/								Acquired/
		As of		Developed			As of		12/31/2012			Developed			As of		3/31/2013
Region	State	12/31/2011		in 2012			12/31/2012		% of Units			in 2013			3/31/2013		% of Units
Baltimore	MD		9,984		493			10,477		24.6	%		-			10,477		24.9	%
Boston	MA/ME		3,304		(1	)		3,303		7.7	%		-			3,303		7.8	%
Chicago	IL		2,566		-			2,566		6.0	%		-			2,566		6.1	%
Florida	FL		836		-			836		2.0	%		-			836		2.0	%
Long Island, New Jersey	NY/NJ		7,225		-			7,225		16.9	%		(61	)		7,164		17.0	%
Philadelphia	PA		5,806		(739	)		5,067		11.9	%		-			5,067		12.0	%
Washington, D.C.	MD/VA		12,230		931			13,161		30.9	%		(450	)		12,711		30.2	%
Total			41,951		684			42,635		100.0	%		(511	)		42,124		100.0	%

Page 21

Table of Contents

Debt Summary Schedule

($ in thousands)

		Interest			03/31/13
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured

Multi-Property Facility	Prudential - Fannie Mae		6.48	%	$	100,000	08/31/13
Saddle Brook Apts. - 1st	Wells Fargo - Fannie Mae		5.84	%		26,266	11/01/13
Saddle Brook Apts. - 2nd	Wells Fargo - Fannie Mae		6.29	%		3,077	11/01/13
The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.52	%		22,806	04/01/14
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.27	%		32,764	07/01/14
The Greens at Columbia	M&T Realty-Fannie Mae		3.93	%		9,195	08/01/14
Westchester West - 1st	Berkeley Point Capital - Freddie		6.15	%		26,136	03/01/15
Westchester West - 2nd	Berkeley Point Capital - Freddie		6.64	%		7,277	03/01/15
Stratford Greens	Capital One Bank		5.75	%		29,644	07/01/15
Sayville Commons	M&T Realty - Freddie Mac		5.00	%		37,818	08/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		32,105	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		22,083	09/02/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		19,199	09/03/15
Cypress Place Apartments	Prudential - Fannie Mae		6.56	%		9,890	11/01/15
Golf Club Apartments	Prudential - Fannie Mae		6.38	%		31,861	11/01/15
Northwood Apartments	M&T Realty - Freddie Mac		5.50	%		10,177	12/01/15
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.25	%		48,038	01/01/16
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.55	%		4,989	01/01/16
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.25	%		73,940	01/01/16
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.55	%		1,814	01/01/16
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.57	%		48,649	02/01/16
Devonshire - 1st	Wachovia - Fannie Mae		5.60	%		35,629	04/01/16
Devonshire - 2nd	Wachovia - Fannie Mae		6.24	%		8,095	04/01/16
Mid-Island	Prudential - Fannie Mae		5.48	%		18,769	04/01/16
Owings Run 1 & 2	Prudential - Fannie Mae		5.59	%		40,651	04/01/16
The Manor East	KeyBank - Freddie Mac		3.25	%		7,072	04/01/16
Country Village	Centerline (CIII) - Fannie Mae		5.52	%		17,880	06/01/16
Fox Hall Apartments	Columbia Nat'l - Freddie Mac		5.61	%		47,000	06/01/17
Mill Towne Village	Prudential - Fannie Mae		5.99	%		24,239	09/01/17
Royal Gardens Apts.	M&T Realty - Freddie Mac		5.83	%		47,000	11/01/17
Village Square 1, 2 & 3	Prudential - Fannie Mae		5.81	%		39,285	12/01/17
Chatham Hill	M&T Realty - Freddie Mac		5.59	%		42,991	01/01/18
William Henry Apartments	PNC - Fannie Mae		4.85	%		27,722	01/01/18
Seminary Towers Apartments	Prudential - Fannie Mae		5.49	%		53,515	07/01/18
The Manor (MD)	Prudential - Fannie Mae		4.23	%		44,867	11/01/18
Bonnie Ridge - 1st	Prudential Life		6.60	%		8,610	12/15/18

Page 22

Table of Contents


		Interest			03/31/13
Property	Lender	Rate %			Balance		Maturity Date

Bonnie Ridge - 2nd	Prudential Life		6.16	%		16,879	12/15/18
Bonnie Ridge - 3rd	Prudential Life		6.07	%		23,969	12/15/18
Annapolis Roads	Amerisphere - Fannie Mae		5.12	%		23,252	01/01/19
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.75	%		17,675	01/01/19
The Sycamores	M&T Realty - Freddie Mac		5.71	%		20,603	01/01/19
Top Field Apartments	M&T Realty - Fannie Mae		4.84	%		16,085	01/01/19
Westwood Village	M&T Realty - Freddie Mac		5.68	%		45,138	01/01/19
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.47	%		11,926	07/01/19
Glen Manor	Prudential - Fannie Mae		5.83	%		7,686	08/01/19
Ridley Brook	Prudential - Fannie Mae		5.83	%		12,759	08/01/19
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.50	%		47,907	08/01/19
Southern Meadows	Red Mortgage - Fannie Mae		5.36	%		39,496	10/01/19
Elmwood Terrace	M & T Realty - Fannie Mae		5.56	%		25,948	11/01/19
Lakeview	Greystone - Fannie Mae		5.31	%		8,804	12/01/19
The Landings	Prudential - Fannie Mae		5.60	%		25,367	01/01/20
East Meadow Apartments	M&T Realty - Freddie Mac		5.40	%		14,279	05/01/20
Selford Townhomes	M&T Realty - Freddie Mac		5.40	%		8,632	05/01/20
Stone Ends Apts.	M&T Realty - Freddie Mac		5.40	%		24,314	05/01/20
Tamarron Apartments	M&T Realty - Freddie Mac		5.40	%		14,286	05/01/20
The Manor (VA)	M&T Realty - Freddie Mac		5.40	%		13,409	05/01/20
Woodmont Village	M&T Realty - Freddie Mac		5.40	%		9,675	05/01/20
Trexler Park	Greystone - Fannie Mae		4.34	%		37,243	08/01/20
Arbor Park of Alexandria	Prudential - Fannie Mae		4.35	%		93,911	11/01/20
New Orleans Park	M & T Realty - Fannie Mae		4.58	%		22,842	11/01/20
Racquet Club East	PNC - Fannie Mae		4.74	%		36,575	12/01/20
Heritage Woods Apts	Greystone - Fannie Mae		5.39	%		14,077	01/01/21
The Meadows at Marlborough	Prudential - Fannie Mae		5.50	%		20,566	01/01/21
Home Properties of Devon	M & T Realty - Fannie Mae		4.85	%		58,997	08/01/21
Pleasant View Gardens	Prudential - Fannie Mae		4.51	%		92,958	11/01/21
Dunfield Townhomes	Midland Mortgage - HUD		5.25	%		10,884	09/01/28
Highland House	Arbor Comml - Fannie Mae		6.32	%		5,498	01/01/29

Wtd Avg - Fixed Secured			5.29	%	$	1,882,693

Page 23

Table of Contents


		Interest			03/31/13
Property	Lender	Rate %			Balance		Maturity Date
Variable Rate Secured

Virginia Village	Wachovia - Freddie Mac		2.09	%	$	28,068	07/01/15
Hill Brook Apts	M&T Realty - Freddie Mac		3.12	%		12,213	09/01/16
Wayne Village	M&T Realty - Freddie Mac		3.27	%		24,889	09/01/16
Cider Mill Apts	M&T Realty - Freddie Mac		3.11	%		59,776	01/01/17
The Heights at Marlborough	PNC Real Estate		3.28	%		22,505	01/01/17
Sherry Lake	M&T Realty - Freddie Mac		2.95	%		24,782	04/01/17

Wtd Avg - Variable Secured			2.97	%	$	172,233

Wtd Avg - Total Secured Debt			5.09	%	$	2,054,926

Fixed Rate Unsecured
Private Placement Senior Notes - Series A	Various Investors		4.46	%	$	90,000	12/19/18
Private Placement Senior Notes - Series B	Various Investors		5.00	%		60,000	12/19/21
Senior Notes	Prudential Life Insurance		4.16	%		50,000	06/27/19
Bank Term Loan w/ Interest Rate Swap	M and T Bank et. al.		1.99	%		250,000	12/08/16

Variable Rate Unsecured
Revolving Line of Credit	M and T Bank et. al.		1.96	%		169,000	12/08/15

Wtd Avg - Total Unsecured Debt			2.81	%	$	619,000

Total Combined Debt			4.57	%	$	2,673,926

Page 24

Table of Contents

Maturity Date/

Interest

03/31/13

Years to

Property

Lender

Rate %

Balance

Maturity

% Of Portfolio – Fixed 87.2%

% Of Portfolio – Variable 12.8%

Interest

Years To

Rate %

Maturity

Wtd Avg - Total Fixed Rate Debt

4.87

4.89

Wtd Avg - Total Variable Rate Debt

2.47

3.09

Wtd Avg - Combined Debt

4.57

4.66

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		6.34	%	$	129,343		0.00	%	$	-	$	129,343		5.16	%
2014		5.17	%		64,765		0.00	%		-		64,765		2.59	%
2015		5.17	%		226,190		2.09	%		28,068		254,258		10.15	%
2016		3.87	%		555,526		3.22	%		37,102		592,628		23.66	%
2017		5.78	%		157,524		3.11	%		107,063		264,587		10.56	%
2018		5.07	%		308,553		0.00	%		-		308,553		12.32	%
2019		5.14	%		327,279		0.00	%		-		327,279		13.07	%
2020		4.81	%		300,533		0.00	%		-		300,533		12.00	%
2021		4.84	%		246,598		0.00	%		-		246,598		9.84	%
2022		0.00	%		-		0.00	%		-		-		0.00	%
2023 - 2029		5.61	%		16,382		0.00	%		-		16,382		0.65	%
TOTAL		4.87	%	$	2,332,693		2.97	%	$	172,233	$	2,504,926		100.00	%

Page 25

Table of Contents

Debt Summary Schedule

Unencumbered Properties

Property		# Units		Region	State
Cambridge Court			544	Baltimore	MD
Canterbury Apartments	*		618	Baltimore	MD
Gateway Village			132	Baltimore	MD
Howard Crossing			1,350	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
Gardencrest			696	Boston	MA
Liberty Place			107	Boston	MA
The Commons at Haynes Farm			302	Boston	MA
The Village at Marshfield			276	Boston	MA
Westwoods			35	Boston	MA
The Townhomes of Beverly			204	Boston	MA
Liberty Commons			120	Boston	ME
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
Barrington Gardens	*		148	Long Island, New Jersey	NJ
East Hill Gardens			33	Long Island, New Jersey	NJ
Hackensack Gardens	*		198	Long Island, New Jersey	NJ
Jacob Ford Village			270	Long Island, New Jersey	NJ
Pleasure Bay			270	Long Island, New Jersey	NJ
Windsor Realty			67	Long Island, New Jersey	NJ
Bayview & Colonial			160	Long Island, New Jersey	NY
Cambridge Village			82	Long Island, New Jersey	NY
Crescent Club			257	Long Island, New Jersey	NY
Heritage Square			80	Long Island, New Jersey	NY
Holiday Square			144	Long Island, New Jersey	NY
Lake Grove Apartments			368	Long Island, New Jersey	NY

Page 26

Unencumbered Properties

Property	# Units	Region	State
Yorkshire Village	40	Long Island, New Jersey	NY
Castle Club Apartments	158	Philadelphia	PA
Racquet Club South	103	Philadelphia	PA
Waterview	203	Philadelphia	PA
1200 East West Highway	248	Washington, D.C.	MD
Hunters Glen	108	Washington, D.C.	MD
Seminary Hill	296	Washington, D.C.	MD
The Courts at Huntington Station	421	Washington, D.C.	MD
Woodleaf Apartments	228	Washington, D.C.	MD
Braddock Lee	255	Washington, D.C.	VA
Mt. Vernon Square	1,387	Washington, D.C.	VA
Newport Village	937	Washington, D.C.	VA
Somerset Park	108	Washington, D.C.	VA
The Apts at Cobblestone Square	314	Washington, D.C.	VA
The Courts at Dulles	411	Washington, D.C.	VA
Village at Potomac Falls	247	Washington, D.C.	VA
Woodway at Trinity Centre	504	Washington, D.C.	VA

Total Number of Units:	16,640
Total Number of Properties:	50

*	Property added to unencumbered pool during 1Q 2013.

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Table of Contents

Recurring Capital Expenditure Summary

For 2013 the Company estimates that the amount of recurring, non-revenue enhancing capital expenditures incurred on an annual basis for a standard garden style apartment will remain unchanged at $848 per apartment unit.

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.

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Table of Contents

Capital Expenditure Summary

The Company estimates that on an annual basis $848 per unit is spent on recurring capital expenditures in 2013. During the three months ended March 31, 2013 approximately $212 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 months ended March 31, 2013 as follows:

			For the three months ended March 31, 2013
			($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Capex		Per Unit(a)		Capex		Per Unit(a)		Improvements		Per Unit(a)
New buildings	$	-	$	-	$	77	$	2	$	77	$	2
Major building improvements		1,331		32		3,269		80		4,600		112
Roof replacements		379		9		68		2		447		11
Site improvements		614		15		294		7		908		22
Apartment upgrades		1,691		41		6,510		159		8,201		200
Appliances		1,432		35		-		-		1,432		35
Carpeting/flooring		2,232		55		367		8		2,599		63
HVAC/mechanicals		799		20		1,472		36		2,271		56
Miscellaneous		205		5		919		22		1,124		27
Total	$	8,683	$	212	$	12,976	$	316	$	21,659	$	528

(a)	Calculated using the weighted average number of units owned, including 38,941 core units, and 2012 acquisition units of 2,018 for the three months ended March 31, 2013.

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

	For the three months ended March 31, 2013
	($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Capex		Per Unit(a)		Capex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	8,255	$	212	$	12,095	$	311	$	20,350	$	523
2012 Acquisition Communities		428		212		881		437		1,309		649
Subtotal		8,683		212		12,976		316		21,659		528
2013 Disposed Communities		37		75		0		-		37		75
2012 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (b)		-		-		-		-		311		-
Total	$	8,720	$	212	$	12,976	$	316	$	22,007	$	528

(a)	Calculated using the weighted average number of units owned, including 38,941 core units, 2012 acquisition units of 2,018, and 2013 disposed units of 489 for the three months ended March 31, 2013.

(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
	3/31/2013			3/31/2012		Change
Net Operating Income	$	97,393		$	92,364		5.4	%
Less: Non-recurring Capex @ 6%		(726	)		-		-
Adjusted Net Operating Income	$	96,667		$	92,364		4.7	%

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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Development Pipeline as of March 31, 2013

($ in thousands)

Units

Cost

Costs

Physical

Property

when

Cost

Estimate

Incurred

Initial

Date

Complete

Leased

Occup

Type

Complete

Estimate

Per Unit

(1)

Start

Occup

Complete

(2)

(3)

(4)

Under construction:

Eleven55 Ripley

Mid-Rise and

379

111,000

293

74,161

4Q 11

4Q 13

1H 14

0.0

n/a

Silver Spring, MD

High-Rise

Courts at Spring Mill Station

Donut/ Podium

385

89,000

231

25,182

2Q 12

1Q 14

2H 14

0.0

n/a

Conshohocken, PA

Pre-construction:

Westpark Tysons (part of Arbor Row

Mid-Rise and

694

232,000

334

31,049

1H 14

tbd

n/a

final development plan)

High-Rise

Tysons Corner, VA

Total

130,392

(1)	Classified as Construction in Progress at March 31, 2013.

(2)	Represents the percentage of units that have been completed and are available to rent as of April 30, 2013.

(3)	Represents the percentage of units that have been leased as of April 30, 2013.

(4)	Represents the percentage of units occupied as of April 30, 2013.

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2013 Earnings Guidance

	Actual
	First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter		Year

2013 compared to 2012
FFO per share - 2013 guidance	$	1.053		$	1.07 - $1.11		To be provided				$	4.32 - $4.44

Actual/Midpoint of guidance	$	1.053		$	1.09		next quarter				$	4.38

FFO per share - 2012 actual	$	0.979		$	0.955		$	1.093	$	1.094	$	4.125

Improvement projected		7.5	%		14.1	%						6.2	%

The range for the year has been changed only to reflect the actual results for the first quarter as compared to expectations. The Company will consider updating the annual expectations at the time of the release of second quarter earnings.

2013 compared to 2012 based on "Operating FFO"
FFO per share - 2013 Operating FFO	$	1.053		$	1.07 - $1.11		To be provided				$	4.35 - $4.47

Midpoint of guidance	$	1.053		$	1.09		next quarter				$	4.41

Operating FFO per share - 2012 actual	$	0.979		$	1.000		$	1.094	$	1.094	$	4.170

Improvement projected		7.5	%		9.0	%						5.8	%

Difference between FFO and OFFO is expensed acquisition costs

Same store assumptions:
Same store total revenue growth	3.7	%	3.7	%	To be provided	(1)	3.5% to 4.5%

Same store expense growth	0.9	%	2.7	%	next quarter	(2)	2.5% to 3.5%

Same store NOI growth	5.4	%	4.1	%		(3)	3.5% to 4.5%

(1)	The range of same store total revenue growth remains unchanged from original guidance given in February.

(2)	The range for same store expense growth has been reduced from the 3.0% to 4.0% range provided in February reflecting 1ST QTR outperformance.

(3)	The range for same store NOI growth remains unchanged from original guidance given in February.

Occupancy assumptions:
Same store 2013 physical occupancy	95.7	%	96.2	%					95.8	%

Same store 2012 physical occupancy	94.9	%	96.0	%	95.5	%	95.4	%	95.4	%

Change in occupancy	0.8	%	0.2	%					0.4	%

The projection for the year has been changed only to reflect the actual results for the first quarter as compared to expectations. The Company will consider updating the annual expectations at the time of the release of second quarter earnings.

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2013 Earnings Guidance

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.Unchanged from original guidance

Interest Expense is projected to be $120.3 million to $121.1 million for the year, without significant differences between the quarters. The expectation is now to be at or below the low end of this original range provided, due to lower anticipated acquisitions and improved bank line spreads.

	Actual
	First		Second		Third		Fourth		Year
	Quarter		Quarter		Quarter		Quarter		Quarter
Development NOI 2013 projected run rate - Ripley	$	0	$	0	$	0	$	200K	$	200K

Acquisition range of $150 million to $250 million.	$	0	$	0	$	100M	$	100M	$	200M

Disposition range of $250 million to $350 million	$	109M	$	15M	$	88M	$	88M	$	300M

Anticipated expense from acquisition costs for 2013 of $1.9 million versus actual of $2.7 million in 2012.

Development spend of $115 million.

Capital expenditures:
Recurring	$	36 million	Unchanged from original
Upgrading and repositioning	$	100 million	guidance

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