Home Properties 8K Earnings Release and Supplemental Information | SEC 2 Aug 13

EXHIBIT 99

Home Properties, Inc.

Earnings Release and Supplemental Information

Second Quarter 2013

Table of Contents

	Page
Earnings Release	1-9
Property Results, Quarterly and Year-to-Date	10-17
Physical Occupancy Comparison by Region	18
Net Operating Results	19
New Lease and Renewal Lease Rents vs. Expiring Lease Rents	20
Resident Statistics	21
Net Operating Income Detail and Seasonality Factor for NAV Calculation	22
Operating Expense Detail	23
Discontinued Operations	24
Summary of Recent Acquisitions	25
Summary of Recent Sales	25
Breakdown of Units	26
Debt Summary Schedule	27-32
Recurring Capital Expenditure and Adjusted NOI Summary	33-35
Development Pipeline	36
2013 Earnings Guidance	37-39

-i-

FOR IMMEDIATE RELEASE

Home Properties Reports Second Quarter 2013 Results

ROCHESTER, N.Y., August 1, 2013 – Home Properties, Inc. (NYSE: HME) today released financial results for the second quarter ended June 30, 2013. All results are reported on a diluted basis.

“The second quarter was a good one for Home Properties with continued solid operating performance resulting in record high Funds From Operations per share, which were at the top end of our expectations,” said Edward J. Pettinella, Home Properties President and CEO. “Recent capital markets activities have strengthened the Company’s balance sheet, increasing our financial flexibility for the future.”

Earnings per share ("EPS") for the quarter ended June 30, 2013 was $0.51 compared to $0.28 for the quarter ended June 30, 2012. The $0.23 increase in EPS is primarily attributable to a $4.6 million gain on disposition of property combined with a $13.0 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). EPS for the six months ended June 30, 2013 was $1.50 compared to $0.59 for the six months ended June 30, 2012. The $0.91 increase in EPS is primarily attributable to a $45.0 million gain on disposition of property combined with an $18.6 million increase in income from continuing operations.

For the quarter ended June 30, 2013, Funds From Operations ("FFO") was $70.4 million, or $1.11 per share, compared to $57.6 million, or $0.96 per share, for the quarter ended June 30, 2012, which equates to a 16.5% increase on a per-share basis. FFO for the six months ended June 30, 2013 was $2.17 per share, compared to $1.93 per share in the year-ago period. A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

Second Quarter Operating Results

For the second quarter of 2013, same-property comparisons (for 113 Core properties containing 38,784 apartment units owned since January 1, 2012) reflected an increase in rental income of 3.2% and a 3.7% increase in total revenues compared to the same quarter a year ago. Net operating income (“NOI”) increased by 4.3% from the second quarter of 2012. Property level operating expenses increased by 2.6% compared to the prior year quarter, primarily due to increases in natural gas heating costs and real estate taxes, which were partially offset by a decrease in property insurance.

Average physical occupancy for the Core properties was 95.9% during the second quarter of 2013, down from 96.0% during the second quarter of 2012. Average monthly rental rates of $1,289 represent a 3.4% increase compared to the year-ago period.

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Home Properties Reports Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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On a sequential basis, compared to the 2013 first quarter results for Core properties, rental income (excluding utility recovery) was up 1.2% in the second quarter of 2013, total revenues increased 0.1%, expenses were down 3.7% and NOI increased 2.4%. Average physical occupancy increased 0.3% to 95.9%.

Physical occupancy for the 3,183 apartment units acquired/developed/redeveloped between January 1, 2012 and June 30, 2013 averaged 91.1% during the second quarter of 2013, at average monthly rents of $1,303.

Year-To-Date Operating Results

For the six months ended June 30, 2013, same-property comparisons for the Core properties reflected an increase in total revenues of 3.7% and an increase in total expenses of 1.7%, resulting in a 4.9% increase in NOI compared to the first six months of 2012. Property level operating expenses increased primarily due to higher personnel expense and real estate taxes, which were partially offset by a decrease in property insurance.

Average physical occupancy for the Core properties was 95.8% during the first six months of 2013, up from 95.4% a year ago, with average monthly rental rates of $1,283, an increase of 3.4% over the prior-year period.

Acquisitions/Dispositions

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

As previously reported, during the second quarter of 2013, the Company sold one apartment community in the Philadelphia region with a total of 158 units for $15 million. A gain on sale of $3.3 million was recorded in the second quarter of 2013 related to this sale.

Development

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

Capital Markets Activities

As of June 30, 2013, the Company’s ratio of debt-to-total market capitalization was 39.4% (based on a June 28, 2013 stock price of $65.37 used to determine equity value), with $241 million outstanding on its $275 million revolving credit facility and $8.8 million of unrestricted cash on hand. Total debt of $2.7 billion was outstanding, at interest rates averaging 4.3% and with staggered maturities averaging five years. Approximately 84% of total indebtedness was at fixed rates. Interest coverage for the quarter was 3.4 times and the fixed charge ratio was 3.2 times.

The Company repaid a $100 million multi-property mortgage note during the second quarter with an interest rate of 6.48% and a maturity date of August 31, 2013, without any prepayment penalties. The debt was secured by five properties, which are now part of the unencumbered

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Home Properties Reports Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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asset pool. As of June 30, 2013 the unencumbered asset pool represented 43.6% of total value, up from 37.5% at December 31, 2012.

On June 28, 2013, the Company entered into a bridge loan agreement, which matures September 30, 2013. The note has a maximum principal amount of $75 million with monthly interest at a variable rate equal to the rate on the existing revolving credit facility. The Company had $25 million outstanding on this note as of June 30, 2013. The proceeds from this note were used to partially fund the repayment of the aforementioned multi-property mortgage note.

The Company has an At-The-Market equity offering program through which it may sell up to 4.4 million common shares. During the second quarter of 2013, the Company received net proceeds of $3.2 million from pending trades as of March 31, 2013. There were no other transactions during the second quarter. There are approximately two million common shares that remain available under this program.

Subsequent to the end of the quarter, on July 12, 2013, the Company closed on a public offering of 4,427,500 shares of its common stock at a price of $63.00 per share, which included 577,500 shares issued pursuant to the full exercise of the underwriters’ option to purchase additional shares. The net proceeds of the sale were approximately $267.6 million, after underwriting discounts, commissions and offering expenses.

Outlook

Based on higher second quarter results than predicted, higher anticipated operating results for the balance of the year, offset by dilution expected from the recent stock offering, the Company has maintained the midpoint of its prior FFO per share guidance at $4.38 and narrowed the range of FFO per share guidance to $4.34 to $4.42. The quarterly breakdown for the balance of 2013 guidance on FFO per share results is as follows: Third quarter $1.08 to $1.12; fourth quarter $1.09 to $1.13. Included in the third quarter is $0.015 per share expense from debt extinguishment costs associated with paying off certain variable rate secured debt before maturity.

The midpoint of Operating FFO (“OFFO”) per share guidance for 2013, which excludes acquisition costs, is $4.40. The quarterly guidance range for OFFO per share is: Third quarter $1.08 to $1.12; fourth quarter $1.11 to $1.15. The Company anticipates acquisitions will be in a range of $50 million to $150 million in 2013.

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Home Properties Reports Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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On May 2, 2013, the Company provided updated guidance for full year 2013 on both an FFO and OFFO basis. The table below reconciles the guidance as of that date to the new guidance provided in this release effective August 1, 2013.

FULL YEAR 2013 GUIDANCE
COMPARISON TO MAY 2, 2013 GUIDANCE
	Per Share
	FFO			OFFO				(1)
May 2, 2013 guidance midpoint	$	4.380			$	4.410
Second quarter outperformance		0.020				0.020		(2)
Third and fourth quarter expected outperformance		0.020				0.020		(3)
Reduced other expense - acquisition costs		0.010		NA

Effect from July equity offering
Dilution		(0.035	)			(0.035	)
Use of proceeds - debt extinguishment costs (3Q)		(0.015	)			(0.015	)

August 1, 2013 Full Year Guidance	$	4.380			$	4.400

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

(2) Second quarter exceeded the midpoint of guidance by two cents from various items including Core and Non-Core NOI improvement, reduced interest expense, and reduced G&A, all compared to expectations.

(3) Third and fourth quarter improvement expected from Core and Non-Core NOI.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.70 per share for the quarter ended June 30, 2013. The dividend is payable on August 23, 2013 to shareholders of record on August 13, 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 July 29 closing price of $65.01. Home Properties’ common stock will begin trading ex-dividend on August 9, 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.

Second 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).

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Home Properties Reports Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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Third Quarter 2013 Conference/Event Schedule

Home Properties is scheduled to participate in the Bank of America Merrill Lynch 2013 Global Real Estate Conference on September 12, 2013 in New York City and in the BMO Capital Markets 8th Annual North American Real Estate Conference on September 16 and 17, 2013 in Chicago. Presentation materials will be available at www.homeproperties.com in the “Investors” section.

Third Quarter 2013 Earnings Release and Conference Call

The Company’s third quarter 2013 financial results are scheduled to be released after the stock market closes on Thursday, October 31, 2013. A conference call, which will be simultaneously webcast, is scheduled for Friday, November 1, 2013 at 11:00 AM ET and will be accessible following the instructions above for the current quarter's conference call.

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 41,967 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

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Home Properties Reports Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
Second Quarter Results:	Occupancy(a)							2Q 2013	2Q 2013 vs. 2Q 2012 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
		2Q 2013			2Q 2012		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.9	%		96.0	%	$	1,289		3.4	%		3.7	%		2.6	%		4.3	%
Non-Core Properties(c)		91.1	%	NA			$	1,303	NA			NA			NA			NA
TOTAL PORTFOLIO		95.5	%	NA			$	1,290	NA			NA			NA			NA

	Avg. Physical
Year-To-Date Results:	Occupancy(a)						YTD 2013		YTD 2013 vs. YTD 2012 % Growth
							Average
							Monthly		Base
	YTD			YTD			Rent /		Rental			Total			Total
		2013			2012		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.8	%		95.4	%	$	1,283		3.4	%		3.7	%		1.7	%		4.9	%
Non-Core Properties(c)		89.6	%	NA			$	1,300	NA			NA			NA			NA
TOTAL PORTFOLIO		95.3	%	NA			$	1,285	NA			NA			NA			NA

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

(b)	Core Properties consist of 113 properties with 38,784 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 Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
Rental income	$	153,762		$	143,128		$	305,452		$	281,435
Property other income		13,206			11,667			27,819			26,045
Other income		215			21			464			30
Total revenues		167,183			154,816			333,735			307,510
Operating and maintenance		59,649			56,017			121,443			114,517
General and administrative		7,337			11,037			16,420			19,350
Interest		29,264			30,504			59,887			60,892
Depreciation and amortization		43,222			39,880			85,855			78,513
Other expenses		16			2,693			32			2,710
Total expenses		139,488			140,131			283,637			275,982
Income from continuing operations		27,695			14,685			50,098			31,528
Discontinued operations
Income (loss) from discontinued operations		59			2,019			(377	)		3,962
Gain on disposition of property		4,645			-			45,004			-
Discontinued operations		4,704			2,019			44,627			3,962
Net income		32,399			16,704			94,725			35,490
Net income attributable to noncontrolling interest		(5,363	)		(2,977	)		(15,809	)		(6,375	)
Net income attributable to common stockholders	$	27,036		$	13,727		$	78,916		$	29,115
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income available to common stockholders	$	27,036		$	13,727		$	78,916		$	29,115
Real property depreciation and amortization		42,695			40,920			85,360			80,579
Noncontrolling interest		5,363			2,977			15,809			6,375
Gain on disposition of property		(4,645	)		-			(45,004	)		-
FFO - basic and diluted, as defined by NAREIT		70,449			57,624			135,081			116,069
Loss from early extinguishment of debt in connection with sale of real estate		-			-			1,416			-
FFO - basic and diluted (1)	$	70,449		$	57,624		$	136,497		$	116,069

(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 Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2013			2012			2013			2012
FFO – basic and diluted	$	70,449		$	57,624		$	136,497		$	116,069
FFO – basic and diluted	$	70,449		$	57,624		$	136,497		$	116,069
Acquisition costs of closed deals included in other expenses		16			2,693			32			2,710
Operating FFO (2)	$	70,465		$	60,317		$	136,529		$	118,779
FFO – basic and diluted	$	70,449		$	57,624		$	136,497		$	116,069
Recurring non-revenue generating capital expenses		(8,901	)		(9,013	)		(17,934	)		(17,912	)
AFFO (3)	$	61,548		$	48,611		$	118,563		$	98,157
Operating FFO	$	70,465		$	60,317		$	136,529		$	118,779
Recurring non-revenue generating capital expenses		(8,901	)		(9,013	)		(17,934	)		(17,912	)
Operating AFFO (2) (3)	$	61,564		$	51,304		$	118,595		$	100,867
Weighted average shares/units outstanding:
Shares – basic		52,299.4			49,026.4			51,954.6			48,694.4
Shares – diluted		52,922.0			49,678.7			52,581.5			49,327.9
Shares/units – basic (4)		62,695.4			59,676.5			62,366.2			59,371.0
Shares/units – diluted (4)		63,318.0			60,328.8			62,993.0			60,004.4
Per share/unit:
Net income – basic	$	0.52		$	0.28		$	1.52		$	0.60
Net income – diluted	$	0.51		$	0.28		$	1.50		$	0.59
FFO – basic	$	1.12		$	0.97		$	2.19		$	1.95
FFO – diluted	$	1.11		$	0.96		$	2.17		$	1.93
Operating FFO (2)	$	1.11		$	1.00		$	2.17		$	1.98
AFFO (3)	$	0.97		$	0.81		$	1.88		$	1.64
Operating AFFO (2) (3)	$	0.97		$	0.85		$	1.88		$	1.68
Common Dividend paid	$	0.70		$	0.66		$	1.40		$	1.32

(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 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 Second Quarter 2013 Results

For Immediate Release: August 1, 2013

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	June 30, 2013			December 31, 2012
Land	$	780,099		$	791,604
Construction in progress		147,784			83,241
Buildings, improvements and equipment		4,557,863			4,580,381
		5,485,746			5,455,226
Accumulated depreciation		(1,169,763	)		(1,108,840	)
Real estate, net		4,315,983			4,346,386

Cash and cash equivalents		8,846			21,092
Cash in escrows		28,904			26,971
Accounts receivable		12,357			13,406
Prepaid expenses		10,494			19,504
Deferred charges		11,751			13,429
Other assets		7,901			10,704
Total assets	$	4,396,236		$	4,451,492
Mortgage notes payable	$	1,946,517		$	2,165,027
Unsecured notes payable		475,000			450,000
Unsecured line of credit		241,000			162,500
Accounts payable		30,447			22,691
Accrued interest payable		8,769			9,974
Accrued expenses and other liabilities		28,984			33,887
Security deposits		18,823			19,146
Total liabilities		2,749,540			2,863,225

Common stockholders’ equity		1,375,796			1,320,968
Noncontrolling interest		270,900			267,299
Total equity		1,646,696			1,588,267
Total liabilities and equity	$	4,396,236		$	4,451,492

Total shares/units outstanding:
Common stock		52,408.3			51,508.1
Operating partnership units		10,363.6			10,455.6
		62,771.9			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

Second Quarter 2013															2Q '13 Versus 2Q '12
			2Q '13												% Growth												2Q '13
	# of		Company			Date	2Q '13		2Q '13			2Q '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	$	1,303		93.5	%		92.9	%		2.8	%		3.7	%		(0.3	%)		5.7	%
Bonnie Ridge		960				7/1/1999		1,163		93.7	%		96.6	%		2.8	%		2.0	%		8.4	%		(0.7	%)
Canterbury		618				7/15/1999		1,038		95.7	%		96.8	%		3.7	%		2.4	%		(2.6	%)		5.0	%
Charleston Place		858				9/30/2010		1,225		96.1	%		97.0	%		4.7	%		3.8	%		1.3	%		4.8	%
Country Village		344				4/30/1998		1,041		93.7	%		95.8	%		(0.1	%)		(1.8	%)		2.5	%		(4.1	%)
Dunfield		312				11/1/2007		1,244		94.9	%		95.7	%		4.3	%		2.1	%		(3.8	%)		5.0	%
Fox Hall		720				3/28/2007		915		93.8	%		93.4	%		2.2	%		7.4	%		2.7	%		10.6	%
Gateway Village		132				7/15/1999		1,414		97.5	%		97.7	%		4.0	%		2.9	%		(3.1	%)		5.7	%
Heritage Woods		164				10/4/2006		1,180		95.6	%		96.7	%		(0.7	%)		(1.4	%)		0.6	%		(2.3	%)
Howard Crossing		1,350				6/28/2012		1,123		95.4	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke		208				4/1/2010		1,001		96.9	%		93.7	%		1.2	%		4.5	%		(3.1	%)		9.0	%
Mill Towne Village		384				5/31/2001		951		96.3	%		96.9	%		3.6	%		5.0	%		1.8	%		7.0	%
Morningside Heights		1,050				4/30/1998		962		94.0	%		93.1	%		4.7	%		6.9	%		(12.6	%)		17.6	%
Owings Run		504				7/15/1999		1,298		96.1	%		95.8	%		3.2	%		3.8	%		5.5	%		3.1	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,244		96.6	%		96.7	%		2.3	%		1.6	%		(1.0	%)		3.0	%
Saddle Brooke		468				10/29/2008		1,144		94.3	%		95.5	%		5.3	%		3.6	%		(2.1	%)		6.6	%
Selford		102				7/15/1999		1,462		96.3	%		98.5	%		4.4	%		1.5	%		(0.8	%)		2.4	%
The Apts. at Cambridge Court		544				8/23/2011		1,366		92.8	%		93.7	%		2.7	%		1.0	%		10.8	%		(3.7	%)
The Coves at Chesapeake		469				11/20/2006		1,335		94.0	%		94.1	%		4.5	%		4.9	%		(2.8	%)		8.6	%
The Greens at Columbia		168				7/29/2010		1,467		96.4	%		93.4	%		3.7	%		5.5	%		(1.1	%)		8.3	%
Top Field		156				10/4/2006		1,335		95.3	%		96.9	%		1.5	%		(0.4	%)		14.7	%		(5.9	%)
Village Square		370				7/15/1999		1,223		93.8	%		96.5	%		3.0	%		(1.6	%)		13.0	%		(8.0	%)
Westbrooke		110				4/1/2010		900		96.9	%		95.1	%		5.8	%		12.3	%		2.1	%		20.4	%
Total Baltimore		10,477		25.0	%		$	1,152		94.8	%		95.4	%		3.4	%		3.3	%		1.1	%		4.3	%		23.0	%

Boston
Gardencrest		696				6/28/2002	$	1,698		97.7	%		96.4	%		4.4	%		6.7	%		2.1	%		8.7	%
Highland House		172				5/31/2006		1,285		94.6	%		97.0	%		3.8	%		1.7	%		19.9	%		(8.9	%)
Liberty Commons		120				8/30/2006		1,297		97.7	%		96.4	%		0.1	%		2.5	%		10.1	%		(0.9	%)
Liberty Place		107				6/6/2006		1,538		96.0	%		96.6	%		2.9	%		3.0	%		15.3	%		(4.0	%)
Redbank Village		500				7/8/1998		956		97.6	%		97.4	%		2.2	%		2.9	%		1.1	%		4.1	%
Stone Ends		280				2/12/2003		1,349		96.1	%		95.6	%		3.0	%		4.0	%		2.1	%		5.0	%
The Commons at Haynes Farm		302				7/15/2011		1,347		96.8	%		97.2	%		6.0	%		4.1	%		16.9	%		(1.7	%)
The Heights at Marlborough		348				9/7/2006		1,301		96.3	%		95.2	%		5.0	%		5.0	%		(0.5	%)		8.1	%
The Meadows at Marlborough		264				9/7/2006		1,263		96.7	%		95.1	%		6.5	%		9.7	%		(4.0	%)		18.8	%
The Townhomes of Beverly		204				2/15/2007		1,604		97.0	%		96.2	%		5.0	%		6.3	%		6.0	%		6.5	%
The Village at Marshfield		276				3/17/2004		1,255		96.0	%		96.5	%		5.3	%		4.8	%		6.0	%		4.1	%
Westwoods		35				4/30/2007		1,384		95.9	%		100.0	%		6.5	%		(0.9	%)		2.4	%		(3.1	%)
Total Boston		3,304		7.9	%		$	1,360		96.8	%		96.4	%		4.3	%		5.1	%		4.7	%		5.3	%		8.4	%

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Table of Contents

Property Results

Second Quarter 2013															2Q '13 Versus 2Q '12
			2Q '13												% Growth												2Q '13
	# of		Company			Date	2Q '13		2Q '13			2Q '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	$	917		95.6	%		96.1	%		3.0	%		3.9	%		(1.5	%)		10.0	%
Courtyards Village		224				8/29/2001		927		98.1	%		97.7	%		4.5	%		4.8	%		3.2	%		6.4	%
Cypress Place		192				12/27/2000		1,054		98.7	%		97.9	%		5.2	%		6.9	%		(10.7	%)		21.6	%
Lakeview Townhomes		120				10/18/2010		1,243		97.8	%		96.7	%		1.9	%		4.0	%		3.8	%		4.2	%
The Colony		783				9/1/1999		924		96.9	%		97.0	%		3.8	%		4.0	%		(6.3	%)		13.3	%
The Gates of Deer Grove		204				12/15/2011		1,069		96.2	%		93.5	%		1.7	%		5.7	%		(4.5	%)		15.0	%
The New Colonies		672				6/23/1998		772		96.4	%		95.3	%		(0.3	%)		0.2	%		22.7	%		(21.2	%)
Total Chicago		2,566		6.1	%		$	920		96.8	%		96.3	%		2.6	%		3.6	%		2.3	%		4.9	%		3.6	%

Florida
The Hamptons		668				7/7/2004	$	1,051		94.0	%		96.4	%		5.2	%		2.2	%		1.6	%		2.7	%
Vinings at Hampton Village		168				7/7/2004		1,170		98.3	%		97.0	%		4.9	%		7.0	%		(4.8	%)		17.7	%
Total Florida		836		2.0	%		$	1,075		95.0	%		96.6	%		5.2	%		3.2	%		0.2	%		5.9	%		1.4	%

Long Island
Bayview / Colonial		160				11/1/2000	$	1,355		98.5	%		98.9	%		4.1	%		5.9	%		3.8	%		7.4	%
Cambridge Village		82				3/1/2002		1,919		99.2	%		97.1	%		3.0	%		5.4	%		0.6	%		8.6	%
Crescent Club		257				9/30/2010		1,388		97.6	%		96.8	%		3.8	%		5.8	%		4.1	%		6.9	%
Devonshire Hills		656				7/16/2001		1,664		97.4	%		97.1	%		2.0	%		1.7	%		(0.6	%)		3.0	%
Hawthorne Court		434				4/4/2002		1,508		97.7	%		97.7	%		2.4	%		4.3	%		4.0	%		4.5	%
Heritage Square		80				4/4/2002		1,878		99.0	%		98.4	%		3.3	%		4.6	%		(5.6	%)		12.1	%
Holiday Square		144				5/31/2002		1,316		99.1	%		99.3	%		4.0	%		3.8	%		4.6	%		3.3	%
Lake Grove		368				2/3/1997		1,527		96.9	%		97.0	%		2.8	%		4.4	%		7.9	%		2.4	%
Mid-Island Estates		232				7/1/1997		1,493		98.0	%		98.7	%		2.6	%		1.2	%		10.4	%		(3.5	%)
Sayville Commons		342				7/15/2005		1,675		96.8	%		96.9	%		3.1	%		3.1	%		2.6	%		3.5	%
Southern Meadows		452				6/29/2001		1,516		96.4	%		97.3	%		4.2	%		4.2	%		7.3	%		2.2	%
Westwood Village		242				3/1/2002		2,554		94.4	%		98.4	%		4.0	%		2.7	%		6.6	%		0.2	%
Woodmont Village		97				3/1/2002		1,406		96.6	%		96.3	%		2.8	%		3.0	%		20.1	%		(5.4	%)
Yorkshire Village		40				3/1/2002		2,004		96.7	%		97.2	%		6.4	%		8.4	%		6.6	%		10.1	%
Total Long Island		3,586		8.5	%		$	1,622		97.1	%		97.5	%		3.1	%		3.5	%		4.4	%		3.0	%		10.1	%

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Property Results

Second Quarter 2013															2Q '13 Versus 2Q '12
			2Q '13												% Growth												2Q '13
	# of		Company			Date	2Q '13		2Q '13			2Q '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	$	1,361		97.6	%		97.4	%		6.4	%		7.1	%		(7.6	%)		17.0	%
Chatham Hill		308				1/30/2004		1,961		96.6	%		95.7	%		5.7	%		7.5	%		(0.8	%)		11.1	%
East Hill Gardens		33				7/8/1998		1,628		98.7	%		96.7	%		1.3	%		3.1	%		(1.4	%)		5.6	%
Hackensack Gardens		198				3/1/2005		1,211		95.3	%		98.0	%		3.4	%		2.2	%		5.4	%		0.0	%
Jacob Ford Village		270				2/15/2007		1,398		98.7	%		98.1	%		6.3	%		4.7	%		9.5	%		2.9	%
Lakeview		106				7/8/1998		1,475		97.2	%		98.0	%		3.8	%		1.8	%		7.0	%		(1.1	%)
Northwood		134				1/30/2004		1,430		97.0	%		97.4	%		3.3	%		1.7	%		(3.2	%)		4.5	%
Oak Manor		77				7/8/1998		2,005		98.8	%		97.8	%		7.4	%		9.1	%		1.6	%		12.4	%
Pleasant View		1,142				7/8/1998		1,220		95.9	%		95.9	%		2.9	%		4.1	%		1.5	%		5.6	%
Pleasure Bay		270				7/8/1998		1,139		97.5	%		96.5	%		5.9	%		7.6	%		(4.0	%)		17.1	%
Royal Gardens		550				5/28/1997		1,320		96.6	%		97.4	%		2.5	%		2.4	%		(0.7	%)		4.1	%
Wayne Village		275				7/8/1998		1,482		97.8	%		97.3	%		3.1	%		3.6	%		7.7	%		1.6	%
Windsor Realty		67				7/8/1998		1,342		98.2	%		94.3	%		2.0	%		3.9	%		1.3	%		5.7	%
Total New Jersey		3,578		8.5	%		$	1,370		96.8	%		96.8	%		3.9	%		4.5	%		1.2	%		6.2	%		9.4	%

Philadelphia
Glen Manor		174				9/23/1997		831		97.0	%		92.4	%		1.3	%		6.9	%		(2.0	%)		18.0	%
Golf Club		399				3/15/2000		1,168		95.7	%		95.4	%		3.7	%		6.2	%		(0.4	%)		9.7	%
Hill Brook Place		274				7/28/1999		953		96.8	%		97.5	%		2.1	%		0.1	%		(2.5	%)		2.2	%
Home Properties of Bryn Mawr		316				3/15/2000		1,494		90.3	%		92.4	%		5.4	%		3.3	%		3.5	%		3.2	%
Home Properties of Devon		631				3/15/2000		1,295		94.2	%		93.8	%		6.4	%		6.8	%		(2.7	%)		11.7	%
New Orleans Park		442				7/28/1999		908		95.5	%		95.4	%		1.5	%		4.0	%		1.0	%		6.9	%
Racquet Club East		466				7/7/1998		1,133		96.4	%		95.9	%		2.4	%		5.3	%		(3.3	%)		10.8	%
Racquet Club South		103				5/27/1999		956		95.5	%		95.1	%		1.8	%		3.9	%		3.7	%		4.0	%
Ridley Brook		244				7/28/1999		984		95.8	%		96.0	%		2.3	%		3.4	%		1.1	%		5.5	%
Sherry Lake		298				7/23/1998		1,320		97.3	%		96.9	%		5.3	%		6.2	%		(3.3	%)		11.2	%
The Brooke at Peachtree Village		146				8/15/2005		1,235		98.4	%		98.2	%		5.1	%		5.3	%		2.7	%		6.9	%
The Landings		384				11/22/1996		1,116		96.5	%		97.2	%		5.9	%		6.0	%		1.5	%		9.0	%
Trexler Park		250				3/15/2000		1,148		96.6	%		95.9	%		3.5	%		5.9	%		(4.1	%)		12.5	%
Trexler Park West		216				8/15/2008		1,383		97.0	%		96.6	%		1.8	%		1.3	%		(0.1	%)		2.1	%
Waterview		203				7/14/2011		1,087		94.3	%		93.6	%		3.6	%		3.4	%		(5.7	%)		9.7	%
William Henry		363				3/15/2000		1,222		95.9	%		93.9	%		2.7	%		2.9	%		7.0	%		0.8	%
Total Philadelphia		4,909		11.7	%		$	1,157		95.5	%		95.2	%		3.8	%		4.7	%		(0.4	%)		7.9	%		10.8	%

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Table of Contents

Property Results

Second Quarter 2013															2Q '13 Versus 2Q '12
			2Q '13												% Growth												2Q '13
	# of		Company			Date	2Q '13		2Q '13			2Q '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	$	1,903		95.7	%		96.5	%		0.8	%		1.3	%		(27.4	%)		12.1	%
Arbor Park of Alexandria		851				Redevelopment		1,559		81.3	%		81.5	%		8.2	%		6.5	%		6.6	%		6.4	%
Braddock Lee		255				3/13/1998		1,427		97.4	%		99.0	%		3.7	%		3.6	%		3.3	%		3.8	%
Cider Mill		864				9/27/2002		1,229		95.8	%		95.6	%		3.8	%		3.1	%		3.8	%		2.7	%
Cinnamon Run		511				12/28/2005		1,290		94.7	%		92.3	%		1.0	%		3.9	%		7.0	%		2.5	%
Courts at Huntington Station		421				6/15/2011		2,007		92.3	%		90.3	%		0.8	%		2.1	%		6.5	%		(0.1	%)
East Meadow		150				8/1/2000		1,460		97.3	%		97.9	%		4.6	%		3.5	%		3.6	%		3.5	%
Elmwood Terrace		504				6/30/2000		992		96.2	%		96.0	%		3.2	%		3.9	%		4.2	%		3.8	%
Hunters Glen		108				4/19/2011		1,014		94.4	%		95.7	%		4.4	%		4.5	%		9.2	%		1.6	%
Mount Vernon Square		1,387				12/27/2006		1,340		95.2	%		95.7	%		5.1	%		5.0	%		18.7	%		(1.2	%)
Newport Village		937				10/17/2011		1,559		95.5	%		95.5	%		0.7	%		0.5	%		0.1	%		0.8	%
Park Shirlington		294				3/13/1998		1,430		97.4	%		97.7	%		4.6	%		5.0	%		0.2	%		8.2	%
Peppertree Farm		879				12/28/2005		1,262		94.6	%		94.2	%		1.6	%		2.9	%		2.1	%		3.4	%
Seminary Hill		296				7/1/1999		1,416		97.1	%		98.7	%		4.6	%		2.1	%		6.4	%		(0.9	%)
Seminary Towers		544				7/1/1999		1,478		96.6	%		96.2	%		3.6	%		4.5	%		3.2	%		5.4	%
Somerset Park		108				10/11/2011		1,498		97.8	%		98.3	%		4.9	%		5.8	%		(15.9	%)		23.0	%
Tamarron		132				7/15/1999		1,656		93.7	%		97.0	%		5.7	%		0.8	%		1.1	%		0.7	%
The Apts. at Cobblestone Square		314				6/14/2012		1,315		95.8	%		n/a			n/a			n/a			n/a			n/a
The Apts. at Wellington Trace		240				3/2/2004		1,427		95.8	%		97.1	%		3.2	%		0.7	%		1.7	%		0.3	%
The Courts at Dulles		411				11/30/2011		1,550		94.8	%		96.5	%		1.2	%		0.8	%		2.2	%		0.2	%
The Courts at Fair Oaks		364				9/30/2010		1,540		96.2	%		95.9	%		3.6	%		4.5	%		7.1	%		3.5	%
The Manor - MD		435				8/31/2001		1,354		95.8	%		95.5	%		2.8	%		4.7	%		10.2	%		2.3	%
The Manor - VA		198				2/19/1999		1,148		97.7	%		98.5	%		4.6	%		2.8	%		(4.1	%)		7.2	%
The Manor East		164				5/11/2012		1,099		94.9	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185				12/16/2002		1,495		95.6	%		97.0	%		3.7	%		1.4	%		17.8	%		(6.4	%)
Village at Potomac Falls		247				8/5/2010		1,449		95.6	%		97.6	%		5.4	%		3.1	%		4.0	%		2.6	%
Virginia Village		344				5/31/2001		1,450		97.6	%		98.7	%		3.5	%		2.8	%		8.4	%		0.5	%
West Springfield		244				11/18/2002		1,585		97.8	%		96.7	%		2.3	%		1.6	%		8.9	%		(1.8	%)
Westchester West		345				12/30/2008		1,381		93.7	%		93.7	%		3.9	%		5.5	%		(0.2	%)		8.7	%
Woodleaf		228				3/19/2004		1,287		97.1	%		94.9	%		0.1	%		3.7	%		(14.9	%)		13.5	%
Woodway at Trinity Centre		504				5/17/2012		1,411		96.4	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		12,711		30.3	%		$	1,409		95.6	%		95.7	%		2.9	%		3.1	%		4.2	%		2.5	%		33.3	%

Total Properties		41,967		100.0	%		$	1,290		95.5	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		38,784					$	1,289		95.9	%		96.0	%		3.4	%		3.7	%		2.6	%		4.3	%
Property Results

(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.

Page 13

Table of Contents

Property Results

June YTD															YTD '13 Versus YTD '12
			YTD '13												% Growth												YTD '13
	# of		Company			Date	YTD '13		YTD '13			YTD '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	$	1,298		93.2	%		94.0	%		3.0	%		3.2	%		(3.8	%)		7.0	%
Bonnie Ridge		960				7/1/1999		1,160		93.8	%		96.1	%		2.8	%		1.4	%		5.6	%		(0.4	%)
Canterbury		618				7/15/1999		1,032		94.9	%		95.4	%		3.6	%		1.8	%		(1.4	%)		3.6	%
Charleston Place		858				9/30/2010		1,219		95.7	%		96.5	%		4.8	%		4.4	%		2.8	%		5.0	%
Country Village		344				4/30/1998		1,042		94.4	%		95.8	%		0.6	%		(0.8	%)		2.9	%		(2.8	%)
Dunfield		312				11/1/2007		1,234		95.4	%		95.7	%		3.8	%		3.4	%		(3.2	%)		6.6	%
Fox Hall		720				3/28/2007		912		93.2	%		93.9	%		2.5	%		1.4	%		0.0	%		2.3	%
Gateway Village		132				7/15/1999		1,403		96.5	%		95.8	%		2.8	%		2.6	%		1.4	%		3.2	%
Heritage Woods		164				10/4/2006		1,183		95.2	%		95.9	%		(0.5	%)		(1.4	%)		1.3	%		(2.7	%)
Howard Crossing		1,350				6/28/2012		1,124		94.6	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke		208				4/1/2010		996		96.0	%		94.2	%		1.4	%		4.4	%		(1.4	%)		7.7	%
Mill Towne Village		384				5/31/2001		948		96.8	%		95.9	%		3.5	%		5.0	%		(1.5	%)		8.8	%
Morningside Heights		1,050				4/30/1998		956		94.1	%		92.3	%		4.0	%		6.1	%		(9.2	%)		14.5	%
Owings Run		504				7/15/1999		1,294		95.4	%		95.4	%		3.1	%		3.7	%		4.2	%		3.5	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,235		97.0	%		96.9	%		2.0	%		2.1	%		(0.9	%)		3.8	%
Saddle Brooke		468				10/29/2008		1,139		93.4	%		95.1	%		5.6	%		4.6	%		0.8	%		6.7	%
Selford		102				7/15/1999		1,456		96.0	%		97.3	%		4.2	%		2.3	%		(0.7	%)		3.5	%
The Apts. at Cambridge Court		544				8/23/2011		1,366		92.1	%		92.7	%		3.0	%		1.8	%		4.4	%		0.5	%
The Coves at Chesapeake		469				11/20/2006		1,327		94.4	%		93.6	%		4.4	%		5.6	%		(3.3	%)		9.7	%
The Greens at Columbia		168				7/29/2010		1,461		95.7	%		94.5	%		3.9	%		4.5	%		1.9	%		5.4	%
Top Field		156				10/4/2006		1,334		96.1	%		95.6	%		2.1	%		1.4	%		4.8	%		0.1	%
Village Square		370				7/15/1999		1,216		94.8	%		96.1	%		2.6	%		0.4	%		9.2	%		(3.6	%)
Westbrooke		110				4/1/2010		897		97.1	%		95.3	%		5.6	%		10.3	%		1.2	%		17.8	%
Total Baltimore		10,477		25.0	%		$	1,147		94.6	%		95.0	%		3.3	%		3.1	%		0.5	%		4.4	%		23.2	%

Boston
Gardencrest		696				6/28/2002	$	1,682		97.1	%		96.3	%		4.3	%		5.4	%		6.7	%		4.8	%
Highland House		172				5/31/2006		1,283		95.1	%		97.2	%		4.6	%		2.0	%		7.3	%		(1.9	%)
Liberty Commons		120				8/30/2006		1,299		96.8	%		96.4	%		0.7	%		2.7	%		7.5	%		0.7	%
Liberty Place		107				6/6/2006		1,529		95.5	%		96.4	%		2.8	%		3.4	%		8.3	%		0.0	%
Redbank Village		500				7/8/1998		955		96.5	%		97.5	%		2.6	%		1.9	%		2.7	%		1.4	%
Stone Ends		280				2/12/2003		1,339		96.8	%		95.1	%		2.9	%		5.6	%		(7.3	%)		13.9	%
The Commons at Haynes Farm		302				7/15/2011		1,339		97.0	%		96.5	%		5.7	%		6.0	%		20.3	%		(0.9	%)
The Heights at Marlborough		348				9/7/2006		1,291		95.9	%		94.3	%		5.2	%		6.0	%		(5.2	%)		14.0	%
The Meadows at Marlborough		264				9/7/2006		1,251		96.8	%		94.5	%		5.8	%		8.7	%		(4.5	%)		19.1	%
The Townhomes of Beverly		204				2/15/2007		1,595		97.2	%		96.5	%		5.0	%		5.9	%		5.0	%		6.4	%
The Village at Marshfield		276				3/17/2004		1,244		96.1	%		96.1	%		5.1	%		4.0	%		(7.4	%)		12.0	%
Westwoods		35				4/30/2007		1,380		97.3	%		97.3	%		6.7	%		4.3	%		(9.1	%)		16.2	%
Total Boston		3,304		7.9	%		$	1,351		96.6	%		96.1	%		4.3	%		5.0	%		2.3	%		6.5	%		8.1	%

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Table of Contents

Property Results

June YTD															YTD '13 Versus YTD '12
			YTD '13												% Growth												YTD '13
	# of		Company			Date	YTD '13		YTD '13			YTD '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	$	912		95.7	%		95.7	%		2.6	%		4.3	%		(0.9	%)		9.7	%
Courtyards Village		224				8/29/2001		919		98.1	%		97.3	%		4.4	%		4.8	%		0.5	%		8.8	%
Cypress Place		192				12/27/2000		1,046		98.5	%		97.3	%		5.3	%		7.2	%		(4.9	%)		16.8	%
Lakeview Townhomes		120				10/18/2010		1,242		97.0	%		95.4	%		2.8	%		4.8	%		7.3	%		3.0	%
The Colony		783				9/1/1999		918		97.0	%		96.8	%		3.4	%		3.7	%		(5.5	%)		11.7	%
The Gates of Deer Grove		204				12/15/2011		1,056		96.0	%		92.9	%		1.0	%		5.7	%		1.7	%		9.3	%
The New Colonies		672				6/23/1998		771		96.3	%		95.5	%		(0.3	%)		1.2	%		15.8	%		(11.4	%)
Total Chicago		2,566		6.1	%		$	914		96.8	%		96.0	%		2.4	%		3.9	%		1.9	%		5.6	%		3.8	%

Florida
The Hamptons		668				7/7/2004	$	1,044		93.7	%		95.0	%		4.7	%		3.8	%		(4.2	%)		12.1	%
Vinings at Hampton Village		168				7/7/2004		1,165		97.3	%		96.3	%		4.6	%		5.8	%		(7.7	%)		20.0	%
Total Florida		836		2.0	%		$	1,068		94.5	%		95.3	%		4.7	%		4.2	%		(4.9	%)		13.8	%		1.4	%

Long Island
Bayview / Colonial		160				11/1/2000	$	1,348		98.7	%		99.0	%		3.9	%		5.5	%		10.1	%		2.4	%
Cambridge Village		82				3/1/2002		1,915		98.9	%		97.6	%		3.2	%		4.4	%		0.8	%		6.8	%
Crescent Club		257				9/30/2010		1,383		96.6	%		94.9	%		4.0	%		6.4	%		2.5	%		9.0	%
Devonshire Hills		656				7/16/2001		1,658		97.0	%		96.8	%		2.0	%		0.9	%		1.0	%		0.8	%
Hawthorne Court		434				4/4/2002		1,501		97.5	%		97.3	%		2.1	%		3.4	%		3.2	%		3.7	%
Heritage Square		80				4/4/2002		1,872		99.2	%		98.6	%		3.6	%		4.3	%		(6.7	%)		12.7	%
Holiday Square		144				5/31/2002		1,309		99.3	%		98.6	%		4.0	%		4.9	%		3.8	%		5.6	%
Lake Grove		368				2/3/1997		1,528		96.7	%		97.0	%		3.2	%		4.3	%		3.3	%		4.8	%
Mid-Island Estates		232				7/1/1997		1,488		97.6	%		98.6	%		2.7	%		0.6	%		8.6	%		(4.0	%)
Sayville Commons		342				7/15/2005		1,668		97.2	%		96.6	%		3.2	%		3.9	%		4.1	%		3.8	%
Southern Meadows		452				6/29/2001		1,509		96.3	%		96.4	%		4.2	%		4.9	%		5.4	%		4.6	%
Westwood Village		242				3/1/2002		2,550		94.8	%		96.8	%		4.2	%		4.1	%		5.5	%		3.1	%
Woodmont Village		97				3/1/2002		1,399		96.1	%		97.0	%		2.8	%		0.8	%		10.1	%		(4.0	%)
Yorkshire Village		40				3/1/2002		1,995		97.3	%		97.4	%		6.2	%		8.6	%		1.9	%		15.7	%
Total Long Island		3,586		8.5	%		$	1,617		97.0	%		97.0	%		3.2	%		3.5	%		3.7	%		3.3	%		10.1	%

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Table of Contents

Property Results

June YTD															YTD '13 Versus YTD '12
			YTD '13												% Growth												YTD '13
	# of		Company			Date	YTD '13		YTD '13			YTD '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	$	1,354		97.7	%		96.7	%		7.0	%		6.7	%		(10.3	%)		18.6	%
Chatham Hill		308				1/30/2004		1,953		94.7	%		94.3	%		5.8	%		5.9	%		1.2	%		7.9	%
East Hill Gardens		33				7/8/1998		1,615		99.3	%		97.5	%		0.8	%		2.4	%		(0.8	%)		4.3	%
Hackensack Gardens		198				3/1/2005		1,207		96.3	%		97.2	%		3.8	%		2.9	%		2.8	%		3.0	%
Jacob Ford Village		270				2/15/2007		1,386		98.3	%		98.7	%		6.2	%		3.5	%		0.9	%		4.7	%
Lakeview		106				7/8/1998		1,467		97.7	%		97.3	%		3.5	%		4.1	%		0.1	%		7.0	%
Northwood		134				1/30/2004		1,423		96.7	%		96.7	%		3.2	%		2.4	%		(1.8	%)		5.4	%
Oak Manor		77				7/8/1998		1,983		98.4	%		97.7	%		6.7	%		6.8	%		(0.4	%)		10.4	%
Pleasant View		1,142				7/8/1998		1,214		96.2	%		95.3	%		2.6	%		3.8	%		0.5	%		6.0	%
Pleasure Bay		270				7/8/1998		1,121		97.3	%		95.9	%		5.0	%		6.5	%		(0.2	%)		12.2	%
Royal Gardens		550				5/28/1997		1,314		95.8	%		96.8	%		2.5	%		2.1	%		0.0	%		3.4	%
Wayne Village		275				7/8/1998		1,475		97.5	%		97.3	%		2.9	%		2.9	%		2.4	%		3.2	%
Windsor Realty		67				7/8/1998		1,337		98.0	%		94.9	%		2.0	%		3.2	%		4.5	%		2.2	%
Total New Jersey		3,578		8.5	%		$	1,362		96.6	%		96.2	%		3.8	%		4.0	%		0.2	%		6.3	%		9.1	%

Philadelphia
Glen Manor		174				9/23/1997		830		96.5	%		94.0	%		1.1	%		4.6	%		2.3	%		7.2	%
Golf Club		399				3/15/2000		1,162		95.7	%		95.1	%		3.6	%		4.1	%		(1.9	%)		7.5	%
Hill Brook Place		274				7/28/1999		950		95.7	%		96.1	%		2.1	%		2.1	%		(1.4	%)		5.3	%
Home Properties of Bryn Mawr		316				3/15/2000		1,483		94.3	%		95.4	%		5.8	%		4.7	%		6.3	%		4.0	%
Home Properties of Devon		631				3/15/2000		1,281		95.5	%		93.6	%		5.9	%		7.2	%		(4.2	%)		13.7	%
New Orleans Park		442				7/28/1999		908		94.4	%		94.8	%		2.0	%		2.7	%		0.2	%		5.3	%
Racquet Club East		466				7/7/1998		1,129		96.3	%		95.5	%		2.3	%		4.2	%		(0.5	%)		7.3	%
Racquet Club South		103				5/27/1999		955		94.7	%		95.1	%		1.8	%		2.2	%		4.2	%		0.2	%
Ridley Brook		244				7/28/1999		984		95.6	%		96.0	%		2.6	%		2.4	%		2.4	%		2.3	%
Sherry Lake		298				7/23/1998		1,317		96.3	%		97.3	%		5.8	%		4.9	%		(2.0	%)		8.7	%
The Brooke at Peachtree Village		146				8/15/2005		1,228		98.3	%		97.9	%		5.4	%		6.4	%		1.4	%		9.5	%
The Landings		384				11/22/1996		1,112		96.6	%		96.5	%		6.1	%		5.6	%		2.8	%		7.5	%
Trexler Park		250				3/15/2000		1,145		95.8	%		94.6	%		3.7	%		4.3	%		1.3	%		6.2	%
Trexler Park West		216				8/15/2008		1,381		97.3	%		96.0	%		2.7	%		3.9	%		0.3	%		5.8	%
Waterview		203				7/14/2011		1,082		94.1	%		92.8	%		3.0	%		5.4	%		(8.4	%)		16.0	%
William Henry		363				3/15/2000		1,218		95.2	%		94.4	%		2.8	%		(1.0	%)		(6.8	%)		2.9	%
Total Philadelphia		4,909		11.7	%		$	1,152		95.7	%		95.2	%		3.9	%		4.2	%		(0.8	%)		7.5	%		10.8	%

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Table of Contents

Property Results

June YTD															YTD '13 Versus YTD '12
			YTD '13												% Growth												YTD '13
	# of		Company			Date	YTD '13		YTD '13			YTD '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	$	1,896		96.0	%		96.7	%		0.9	%		0.5	%		9.5	%		(3.0	%)
Arbor Park of Alexandria		851				Redevelopment		1,550		78.3	%		80.4	%		8.3	%		4.6	%		3.8	%		5.1	%
Braddock Lee		255				3/13/1998		1,426		97.3	%		98.2	%		4.1	%		4.0	%		5.8	%		2.9	%
Cider Mill		864				9/27/2002		1,224		95.9	%		95.7	%		3.7	%		2.9	%		(1.0	%)		5.7	%
Cinnamon Run		511				12/28/2005		1,288		93.6	%		93.0	%		1.5	%		1.4	%		4.1	%		0.2	%
Courts at Huntington Station		421				6/15/2011		2,000		93.6	%		82.2	%		(0.4	%)		11.9	%		8.3	%		13.8	%
East Meadow		150				8/1/2000		1,457		96.9	%		97.9	%		4.7	%		1.6	%		7.8	%		(1.5	%)
Elmwood Terrace		504				6/30/2000		990		96.0	%		95.9	%		3.8	%		4.6	%		5.6	%		3.8	%
Hunters Glen		108				4/19/2011		1,012		93.8	%		96.2	%		5.1	%		3.5	%		10.2	%		(0.4	%)
Mount Vernon Square		1,387				12/27/2006		1,331		94.9	%		94.3	%		4.6	%		5.5	%		11.5	%		2.6	%
Newport Village		937				10/17/2011		1,556		95.8	%		94.3	%		0.6	%		1.9	%		0.6	%		2.6	%
Park Shirlington		294				3/13/1998		1,425		96.5	%		97.6	%		4.6	%		2.7	%		1.8	%		3.2	%
Peppertree Farm		879				12/28/2005		1,260		93.5	%		94.4	%		1.8	%		1.8	%		2.3	%		1.5	%
Seminary Hill		296				7/1/1999		1,409		97.1	%		97.8	%		4.3	%		3.2	%		5.1	%		1.8	%
Seminary Towers		544				7/1/1999		1,473		96.5	%		95.5	%		3.7	%		3.9	%		4.3	%		3.7	%
Somerset Park		108				10/11/2011		1,502		97.7	%		97.6	%		5.4	%		5.6	%		(7.1	%)		14.3	%
Tamarron		132				7/15/1999		1,648		94.7	%		96.2	%		5.6	%		3.8	%		(2.1	%)		6.1	%
The Apts. at Cobblestone Square		314				6/14/2012		1,308		95.1	%		n/a			n/a			n/a			n/a			n/a
The Apts. at Wellington Trace		240				3/2/2004		1,419		96.0	%		97.1	%		3.1	%		2.3	%		(0.4	%)		3.4	%
The Courts at Dulles		411				11/30/2011		1,549		95.2	%		94.1	%		0.9	%		2.5	%		2.4	%		2.6	%
The Courts at Fair Oaks		364				9/30/2010		1,537		96.9	%		96.3	%		3.9	%		4.9	%		7.1	%		4.1	%
The Manor - MD		435				8/31/2001		1,344		96.0	%		95.1	%		2.5	%		4.4	%		2.2	%		5.4	%
The Manor - VA		198				2/19/1999		1,141		95.7	%		97.8	%		4.7	%		1.2	%		(4.6	%)		4.9	%
The Manor East		164				5/11/2012		1,099		92.7	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185				12/16/2002		1,485		96.0	%		97.1	%		4.0	%		2.6	%		15.8	%		(3.6	%)
Village at Potomac Falls		247				8/5/2010		1,438		96.3	%		96.9	%		5.4	%		4.5	%		2.8	%		5.5	%
Virginia Village		344				5/31/2001		1,446		97.5	%		96.9	%		3.5	%		2.8	%		(2.9	%)		5.6	%
West Springfield		244				11/18/2002		1,579		97.2	%		96.0	%		2.5	%		2.0	%		6.2	%		0.1	%
Westchester West		345				12/30/2008		1,374		92.8	%		93.8	%		4.4	%		3.6	%		1.7	%		4.6	%
Woodleaf		228				3/19/2004		1,285		97.0	%		95.6	%		0.1	%		0.6	%		(13.3	%)		7.4	%
Woodway at Trinity Centre		504				5/17/2012		1,407		95.9	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		12,711		30.3	%		$	1,404		95.5	%		94.7	%		2.9	%		3.6	%		3.7	%		3.5	%		33.5	%

Total Properties		41,967		100.0	%		$	1,285		95.3	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		38,784					$	1,283		95.8	%		95.4	%		3.4	%		3.7	%		1.7	%		4.9	%

(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.

Page 17

Table of Contents

Physical Occupancy Comparison by Region - Core Properties

Sequential Comparison
Second Quarter 2013 vs. First Quarter 2013
Region	% Units			2Q '13			1Q '13			Variance
Baltimore		23.5	%		94.8	%		94.4	%		0.4	%
Boston		8.5	%		96.8	%		96.4	%		0.4	%
Chicago		6.6	%		96.8	%		96.8	%		0.0	%
Florida		2.2	%		95.0	%		94.0	%		1.0	%
Long Island, New Jersey		18.5	%		97.0	%		96.6	%		0.4	%
Philadelphia		12.7	%		95.5	%		95.9	%		(0.4	%)
Washington, D.C.		28.0	%		95.6	%		95.4	%		0.2	%

Total Core		100.0	%		95.9	%		95.6	%		0.3	%

Year over Year Comparison
Second Quarter 2013 vs. Second Quarter 2012
Region	% Units			2Q '13			2Q '12			Variance
Baltimore		23.5	%		94.8	%		95.4	%		(0.6	%)
Boston		8.5	%		96.8	%		96.4	%		0.4	%
Chicago		6.6	%		96.8	%		96.3	%		0.5	%
Florida		2.2	%		95.0	%		96.6	%		(1.6	%)
Long Island, New Jersey		18.5	%		97.0	%		97.2	%		(0.2	%)
Philadelphia		12.7	%		95.5	%		95.2	%		0.3	%
Washington, D.C.		28.0	%		95.6	%		95.7	%		(0.1	%)

Total Core		100.0	%		95.9	%		96.0	%		(0.1	%)

June vs. Quarter Comparison
Region	% Units			Jun '13			2Q '13			Variance
Baltimore		23.5	%		94.8	%		94.8	%		0.0	%
Boston		8.5	%		96.4	%		96.8	%		(0.4	%)
Chicago		6.6	%		96.7	%		96.8	%		(0.1	%)
Florida		2.2	%		95.0	%		95.0	%		0.0	%
Long Island, New Jersey		18.5	%		97.1	%		97.0	%		0.1	%
Philadelphia		12.7	%		94.2	%		95.5	%		(1.3	%)
Washington, D.C.		28.0	%		95.4	%		95.6	%		(0.2	%)

Total Core		100.0	%		95.7	%		95.9	%		(0.2	%)

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Net Operating Results - Core Properties

Sequential Results
Second Quarter 2013 vs. First Quarter 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.5	%		0.8	%		(0.2	%)		(1.4	%)		0.4	%
Boston		8.5	%		1.9	%		1.9	%		(9.9	%)		9.3	%
Chicago		6.6	%		1.1	%		0.3	%		8.0	%		(5.9	%)
Florida		2.2	%		2.6	%		2.0	%		(1.2	%)		4.8	%
Long Island, New Jersey		18.5	%		1.6	%		0.3	%		(8.8	%)		6.6	%
Philadelphia		12.7	%		0.6	%		(1.2	%)		(6.4	%)		2.2	%
Washington, D.C.		28.0	%		1.1	%		0.1	%		(0.6	%)		0.5	%

Total Core		100.0	%		1.2	%		0.1	%		(3.7	%)		2.4	%

Year over Year Results
Second Quarter 2013 vs. Second Quarter 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.5	%		2.4	%		3.3	%		1.1	%		4.3	%
Boston		8.5	%		4.8	%		5.1	%		4.7	%		5.3	%
Chicago		6.6	%		3.5	%		3.6	%		2.3	%		4.9	%
Florida		2.2	%		4.0	%		3.2	%		0.2	%		5.9	%
Long Island, New Jersey		18.5	%		3.3	%		4.0	%		3.0	%		4.5	%
Philadelphia		12.7	%		4.1	%		4.7	%		(0.4	%)		7.9	%
Washington, D.C.		28.0	%		2.7	%		3.1	%		4.2	%		2.5	%

Total Core		100.0	%		3.2	%		3.7	%		2.6	%		4.3	%

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

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Percentage Change in New Lease and Renewal Lease Rents Compared to
Expiring Lease Rents - Core Properties

	1Q '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						2Q '13
Region	New			Renewal			New			Renewal
Baltimore		1.6	%		3.7	%		2.1	%		4.0	%

Boston		1.9	%		3.4	%		7.3	%		4.2	%

Chicago		0.5	%		3.0	%		2.3	%		4.0	%

Florida		4.6	%		4.3	%		7.9	%		3.6	%

Long Island, New Jersey		3.8	%		3.1	%		3.5	%		3.3	%

Philadelphia		(0.4	%)		2.9	%		2.4	%		3.7	%

Washington, D.C.		(0.3	%)		4.1	%		0.7	%		3.9	%

Total Core		1.3	%		3.6	%		2.7	%		3.8	%

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Resident Statistics

Top Six Reasons for Moveouts
	2Q '13			1Q '13			4Q '12			3Q '12			2Q '12			1Q '12			Year '12			Year '11			Year '10
Employment related		13.6	%		14.7	%		14.1	%		12.5	%		13.4	%		12.6	%		13.2	%		13.4	%		13.9	%
Location, apartment size		13.4	%		12.3	%		12.1	%		13.0	%		13.5	%		11.7	%		12.6	%		13.1	%		12.1	%
Eviction, skip		13.3	%		14.9	%		14.3	%		12.7	%		12.8	%		16.9	%		14.2	%		16.4	%		15.6	%
Home purchase		12.5	%		11.2	%		13.0	%		11.2	%		11.2	%		9.6	%		11.3	%		10.4	%		11.0	%
Domestic Situation		12.2	%		8.2	%		8.6	%		11.2	%		12.7	%		8.3	%		10.2	%		9.6	%		9.8	%
Transfer within HME		11.9	%		14.1	%		13.3	%		12.5	%		11.5	%		15.0	%		13.1	%		11.6	%		12.3	%

Traffic - Core Properties													Turnover - Core Properties
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	2Q '13			YTD '13			2Q '13			YTD '13
	vs.			vs.			vs.			vs.
Region	2Q '12			YTD '12			2Q '12			YTD '12			2Q '13			2Q '12			YTD '13			YTD '12
Baltimore		2.9	%		(2.9	%)		12.9	%		3.3	%		10.8	%		10.4	%		18.6	%		19.1	%
Boston		5.8	%		10.5	%		8.8	%		13.2	%		12.4	%		11.3	%		20.9	%		18.0	%
Chicago		6.1	%		3.5	%		3.4	%		5.4	%		14.4	%		14.4	%		23.9	%		24.6	%
Florida		(2.3	%)		(14.8	%)		23.9	%		(4.4	%)		9.6	%		10.0	%		19.7	%		22.2	%
Long Island		(0.3	%)		3.0	%		6.9	%		1.1	%		9.0	%		8.4	%		16.3	%		15.3	%
New Jersey		6.4	%		2.7	%		7.9	%		9.6	%		9.7	%		9.3	%		17.4	%		17.4	%
Philadelphia		5.8	%		(0.5	%)		6.5	%		2.5	%		13.3	%		13.2	%		21.9	%		21.0	%
Washington, D.C.		(9.7	%)		(11.5	%)		(7.4	%)		(5.9	%)		9.2	%		8.8	%		16.7	%		16.6	%

Total Core		0.3	%		(2.5	%)		4.7	%		1.9	%		10.7	%		10.3	%		18.8	%		18.5	%

Bad Debt as % of Rent and Utility Recovery
	2Q '13			2Q '12			YTD '13			YTD '12
Total Core		0.85	%		0.80	%		0.88	%		0.88	%

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Net Operating Income Detail
($ in thousands, except per unit data)

Core Properties
							Qtr			%									YTD			%
	2Q '13			2Q '12			Variance			Variance			YTD '13			YTD '12			Variance			Variance
Rent	$	142,514		$	138,102		$	4,412			3.2	%	$	283,358		$	273,217		$	10,141			3.7	%
Utility recovery		5,246			4,663			583			12.5	%		12,445			11,780			665			5.6	%
Rent including recoveries		147,760			142,765			4,995			3.5	%		295,803			284,997			10,806			3.8	%
Other income		7,124			6,588			536			8.1	%		13,769			13,510			259			1.9	%
Total income		154,884			149,353			5,531			3.7	%		309,572			298,507			11,065			3.7	%
Operating & maintenance		(55,455	)		(54,049	)		(1,406	)		(2.6	%)		(113,062	)		(111,140	)		(1,922	)		(1.7	%)
Core Properties NOI	$	99,429		$	95,304		$	4,125			4.3	%	$	196,510		$	187,367		$	9,143			4.9	%

Physical Occupancy		95.9	%		96.0	%		(0.1	%)					95.8	%		95.4	%		0.4	%

Weighted Avg Rent per Unit	$	1,289		$	1,247		$	42			3.4	%	$	1,283		$	1,242		$	42			3.4	%

Acquired Properties (1)							Redevelopment Property (2)
	2Q '13			YTD '13				2Q '13			YTD '13
Rent	$	8,030		$	15,926		Rent	$	3,218		$	6,168
Utility recovery		253			477		Utility recovery		119			285
Rent including recoveries		8,283			16,403		Rent including recoveries		3,337			6,453
Other income		342			618		Other income		122			225
Total income		8,625			17,021		Total income		3,459			6,678
Operating & maintenance		(2,942	)		(5,910	)	Operating & maintenance		(1,252	)		(2,471	)
Acquired Properties NOI	$	5,683		$	11,111		Redevelopment Property NOI	$	2,207		$	4,207

Physical Occupancy		95.7	%		94.9	%	Physical Occupancy		81.3	%		78.3	%

Weighted Avg Rent per Unit	$	1,209		$	1,208		Weighted Avg Rent per Unit	$	1,559		$	1,550

(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.

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Operating Expense Detail - Core Properties
($ in thousands)

					Qtr			%							YTD			%
	2Q '13		2Q '12		Variance			Variance			YTD '13		YTD '12		Variance			Variance
Electricity	$	1,829	$	1,741	$	88			5.1	%	$	3,832	$	3,940	$	(108	)		(2.7	%)
Gas		2,462		2,149		313			14.6	%		8,589		8,042		547			6.8	%
Water & sewer		4,461		4,355		106			2.4	%		8,945		8,818		127			1.4	%
Repairs & maintenance		8,827		8,635		192			2.2	%		15,031		14,904		127			0.9	%
Personnel expense		13,004		12,808		196			1.5	%		26,613		25,418		1,195			4.7	%
Advertising		1,197		1,234		(37	)		(3.0	%)		2,310		2,387		(77	)		(3.2	%)
Legal & professional		350		341		9			2.6	%		739		954		(215	)		(22.5	%)
Office & telephone		1,523		1,514		9			0.6	%		3,114		3,398		(284	)		(8.4	%)
Property insurance		1,197		1,578		(381	)		(24.1	%)		2,296		3,882		(1,586	)		(40.9	%)
Real estate taxes		15,547		14,575		972			6.7	%		30,722		28,782		1,940			6.7	%
Snow		80		10		70			700.0	%		922		288		634			220.1	%
Trash		822		861		(39	)		(4.5	%)		1,659		1,746		(87	)		(5.0	%)
Property management G&A		4,156		4,248		(92	)		(2.2	%)		8,290		8,581		(291	)		(3.4	%)
Total Core	$	55,455	$	54,049	$	1,406			2.6	%	$	113,062	$	111,140	$	1,922			1.7	%

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Discontinued Operations (1)
($ in thousands)

The operating results of discontinued operations are summarized as follows for the three and six months ended June 30, 2013 and 2012:


	2Q '13		2Q '12		YTD '13			YTD '12
Revenues:
Rental income	$	57	$	6,898	$	2,512		$	13,786
Property other income		66		647		351			1,382
Total revenues		123		7,545		2,863			15,168
Expenses:
Operating and maintenance		63		2,710		952			5,482
Interest (2)		1		1,025		1,741			2,162
Depreciation and amortization		-		1,791		547			3,562
Total expenses		64		5,526		3,240			11,206
Income (loss) from discontinued operations	$	59	$	2,019	$	(377	)	$	3,962

(1)	Discontinued operations consists of two properties (424 units) disposed in 3Q '12, four properties (1,172 units) disposed in 4Q '12, two properties (511 units) disposed in 1Q '13 and one property (158 units) disposed in 2Q '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 six months ended June 30, 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
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.

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Breakdown of Units

				Net								Net
				Acquired/								Acquired/
		As of		Developed			As of		12/31/2012			Developed			As of		6/30/2013
Region	State	12/31/2011		in 2012			12/31/2012		% of Units			in 2013			6/30/2013		% of Units
Baltimore	MD		9,984		493			10,477		24.6	%		-			10,477		25.0	%
Boston	MA/ME		3,304		(1	)		3,303		7.7	%		1			3,304		7.9	%
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	%		(158	)		4,909		11.7	%
Washington, D.C.	MD/VA		12,230		931			13,161		30.9	%		(450	)		12,711		30.3	%
Total			41,951		684			42,635		100.0	%		(668	)		41,967		100.0	%

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Debt Summary Schedule
($ in thousands)

		Interest			06/30/13
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured

Saddle Brook Apts. - 1st	Wells Fargo - Fannie Mae		5.84	%		26,190	11/01/13
Saddle Brook Apts. - 2nd	Wells Fargo - Fannie Mae		6.29	%		3,064	11/01/13
The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.52	%		22,673	04/01/14
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.27	%		32,555	07/01/14
The Greens at Columbia	M&T Realty-Fannie Mae		3.93	%		9,121	08/01/14
Westchester West - 1st	Berkeley Point Capital - Freddie		6.15	%		26,070	03/01/15
Westchester West - 2nd	Berkeley Point Capital - Freddie		6.64	%		7,258	03/01/15
Stratford Greens	Capital One Bank		5.75	%		29,479	07/01/15
Sayville Commons	M&T Realty - Freddie Mac		5.00	%		37,587	08/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		32,018	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		22,007	09/02/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		19,107	09/03/15
Cypress Place Apartments	Prudential - Fannie Mae		6.56	%		9,852	11/01/15
Golf Club Apartments	Prudential - Fannie Mae		6.38	%		31,737	11/01/15
Northwood Apartments	M&T Realty - Freddie Mac		5.50	%		10,135	12/01/15
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.25	%		47,801	01/01/16
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.55	%		4,966	01/01/16
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.25	%		73,575	01/01/16
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.55	%		1,806	01/01/16
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.57	%		48,384	02/01/16
Devonshire - 1st	Wachovia - Fannie Mae		5.60	%		35,439	04/01/16
Devonshire - 2nd	Wachovia - Fannie Mae		6.24	%		8,066	04/01/16
Mid-Island	Prudential - Fannie Mae		5.48	%		18,687	04/01/16
Owings Run 1 & 2	Prudential - Fannie Mae		5.59	%		40,478	04/01/16
The Manor East	KeyBank - Freddie Mac		3.25	%		7,008	04/01/16
Country Village	Centerline (CIII) - Fannie Mae		5.52	%		17,785	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	%		42,818	01/01/18
William Henry Apartments	PNC - Fannie Mae		4.85	%		27,611	01/01/18

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Table of Contents

Debt Summary Schedule
($ in thousands)
		Interest			06/30/13
Property	Lender	Rate %			Balance		Maturity Date
Seminary Towers Apartments	Prudential - Fannie Mae		5.49	%		53,515	07/01/18
The Manor (MD)	Prudential - Fannie Mae		4.23	%		44,663	11/01/18
Bonnie Ridge - 1st	Prudential Life		6.60	%		8,300	12/15/18
Bonnie Ridge - 2nd	Prudential Life		6.16	%		16,772	12/15/18
Bonnie Ridge - 3rd	Prudential Life		6.07	%		23,861	12/15/18
Annapolis Roads	Amerisphere - Fannie Mae		5.12	%		23,164	01/01/19
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.75	%		17,600	01/01/19
The Sycamores	M&T Realty - Freddie Mac		5.71	%		20,515	01/01/19
Top Field Apartments	M&T Realty - Fannie Mae		4.84	%		16,021	01/01/19
Westwood Village	M&T Realty - Freddie Mac		5.68	%		44,944	01/01/19
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.47	%		11,875	07/01/19
Glen Manor	Prudential - Fannie Mae		5.83	%		7,658	08/01/19
Ridley Brook	Prudential - Fannie Mae		5.83	%		12,712	08/01/19
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.50	%		47,660	08/01/19
Southern Meadows	Red Mortgage - Fannie Mae		5.36	%		39,341	10/01/19
Elmwood Terrace	M & T Realty - Fannie Mae		5.56	%		25,851	11/01/19
Lakeview	Greystone - Fannie Mae		5.31	%		8,769	12/01/19
The Landings	Prudential - Fannie Mae		5.60	%		25,265	01/01/20
East Meadow Apartments	M&T Realty - Freddie Mac		5.40	%		14,220	05/01/20
Selford Townhomes	M&T Realty - Freddie Mac		5.40	%		8,597	05/01/20
Stone Ends Apts.	M&T Realty - Freddie Mac		5.40	%		24,215	05/01/20
Tamarron Apartments	M&T Realty - Freddie Mac		5.40	%		14,228	05/01/20
The Manor (VA)	M&T Realty - Freddie Mac		5.40	%		13,354	05/01/20
Woodmont Village	M&T Realty - Freddie Mac		5.40	%		9,635	05/01/20
Trexler Park	Greystone - Fannie Mae		4.34	%		37,076	08/01/20
Arbor Park of Alexandria	Prudential - Fannie Mae		4.35	%		93,495	11/01/20
New Orleans Park	M & T Realty - Fannie Mae		4.58	%		22,745	11/01/20
Racquet Club East	PNC - Fannie Mae		4.74	%		36,425	12/01/20
Heritage Woods Apts	Greystone - Fannie Mae		5.39	%		14,027	01/01/21
The Meadows at Marlborough	Prudential - Fannie Mae		5.50	%		20,494	01/01/21
Home Properties of Devon	M & T Realty - Fannie Mae		4.85	%		58,771	08/01/21
Pleasant View Gardens	Prudential - Fannie Mae		4.51	%		92,558	11/01/21
Dunfield Townhomes	Midland Mortgage - HUD		5.25	%		10,764	09/01/28
Highland House	Arbor Comml - Fannie Mae		6.32	%		5,447	01/01/29

Wtd Avg - Fixed Secured			5.22	%	$	1,775,338

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Debt Summary Schedule
($ in thousands)
		Interest			06/30/13
Property	Lender	Rate %			Balance		Maturity Date
Variable Rate Secured
Virginia Village	Wachovia - Freddie Mac		2.01	%	$	27,859	07/01/15
Hill Brook Apts	M&T Realty - Freddie Mac		3.11	%		12,140	09/01/16
Wayne Village	M&T Realty - Freddie Mac		3.26	%		24,744	09/01/16
Cider Mill Apts	M&T Realty - Freddie Mac		3.10	%		59,426	01/01/17
The Heights at Marlborough	PNC Real Estate		3.27	%		22,376	01/01/17
Sherry Lake	M&T Realty - Freddie Mac		2.94	%		24,634	04/01/17

Wtd Avg - Variable Secured			2.94	%	$	171,179

Wtd Avg - Total Secured Debt			5.02	%	$	1,946,517

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.		1.84	%		250,000	12/08/16

Variable Rate Unsecured
Bank Term Loan 90-Day	M and T Bank		1.40	%		25,000	09/30/13
Revolving Line of Credit	M and T Bank et. al.		1.40	%		241,000	12/08/15

Wtd Avg - Total Unsecured Debt			2.43	%	$	716,000

Total Combined Debt			4.33	%	$	2,662,517

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Debt Summary Schedule
($ in thousands)

% Of Portfolio - Fixed	83.6	%
% Of Portfolio - Variable	16.4	%
			Interest			Years To
			Rate %			Maturity
Wtd Avg - Total Fixed Rate Debt				4.78	%	4.84
Wtd Avg - Total Variable Rate Debt				2.00	%	2.62
Wtd Avg - Combined Debt				4.33	%	4.48

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		5.89	%	$	29,253		1.40	%	$	25,000	$	54,253		2.24	%
2014		5.17	%		64,349		-			-		64,349		2.66	%
2015		5.17	%		225,251		2.01	%		27,859		253,111		10.45	%
2016		3.79	%		553,995		3.21	%		36,884		590,879		24.40	%
2017		5.78	%		157,524		3.10	%		106,435		263,959		10.90	%
2018		5.07	%		307,541		-			-		307,541		12.70	%
2019		5.14	%		326,111		-			-		326,111		13.47	%
2020		4.81	%		299,254		-			-		299,254		12.36	%
2021		4.84	%		245,850		-			-		245,850		10.15	%
2022		-			-		-			-		-		-
2023 - 2029		5.61	%		16,211		-			-		16,211		0.67	%
TOTAL		4.78	%	$	2,225,338		2.75	%	$	196,179	$	2,421,517		100.00	%

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Table of Contents

Debt Summary Schedule

Unencumbered Properties

Property	# Units		Region	State
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 Apts at Cambridge Court		544	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 Townhomes of Beverly		204	Boston	MA
The Village at Marshfield		276	Boston	MA
Westwoods		35	Boston	MA
Liberty Commons		120	Boston	ME
Redbank Village *		500	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
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
Barrington Gardens		148	New Jersey	NJ
East Hill Gardens		33	New Jersey	NJ
Hackensack Gardens		198	New Jersey	NJ
Jacob Ford Village		270	New Jersey	NJ

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Debt Summary Schedule

Unencumbered Properties

Oak Manor *	77	New Jersey	NJ
Pleasure Bay	270	New Jersey	NJ
Windsor Realty	67	New Jersey	NJ
Home Properties of Bryn Mawr *	316	Philadelphia	PA
Racquet Club South	103	Philadelphia	PA
Waterview	203	Philadelphia	PA
1200 East West Highway	247	Washington, D.C.	MD
Hunter's 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
Park Shirlington *	294	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
West Springfield Village *	244	Washington, D.C.	VA
Woodway at Trinity Centre	504	Washington, D.C.	VA

Total Number of Units:	17,912
Total Number of Properties:	54

*	Property added to unencumbered pool during 2Q '13.

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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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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 June 30, 2013 approximately $212 per unit was spent on recurring capital expenditures. For the six months ended June 30, 2013 approximately $424 per unit was spent on recurring capital expenditures. The table below summarizes the actual total capital improvements incurred by major categories and an estimate of the breakdown of total capital improvements by major categories between recurring, and non-recurring revenue generating capital improvements for the three and six months ended June 30, 2013 as follows:

For the three months ended June 30, 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	$	-	$	-	$	76	$	2	$	76	$	2
Major building improvements		1,326		32		5,039		123		6,365		155
Roof replacements		377		9		1,240	��	30		1,617		39
Site improvements		612		15		3,620		89		4,232		104
Apartment upgrades		1,447		35		8,555		210		10,002		245
Appliances		1,664		41		-		-		1,664		41
Carpeting/flooring		2,224		55		1,091		27		3,315		82
HVAC/mechanicals		796		20		4,595		113		5,391		133
Miscellaneous		204		5		781		19		985		24
Total	$	8,650	$	212	$	24,997	$	613	$	33,647	$	825

(a)	Calculated using the weighted average number of units owned, including 38,784 core units, and 2012 acquisition units of 2,018 for the three months ended June 30, 2013.

For the six months ended June 30, 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	$	-	$	-	$	153	$	4	$	153	$	4
Major building improvements		2,652		65		8,310		204		10,962		269
Roof replacements		755		19		1,310		32		2,065		51
Site improvements		1,224		30		3,916		96		5,140		126
Apartment upgrades		3,133		77		15,068		369		18,201		446
Appliances		3,089		76		6		-		3,095		76
Carpeting/flooring		4,447		108		1,463		36		5,910		144
HVAC/mechanicals		1,591		39		6,054		148		7,645		187
Miscellaneous		408		10		1,702		42		2,110		52
Totals	$	17,299	$	424	$	37,982	$	931	$	55,281	$	1,355

(a)	Calculated using the weighted average number of units owned, including 38,784 core units, and 2012 acquisition units of 2,018 for the six months ended June 30, 2013.

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Capital Expenditure Summary (continued)

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

For the three months ended June 30, 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	$	8,222	$	212	$	23,788	$	613	$	32,010	$	825
2012 Acquisition Communities		428		212		1,209		599		1,637		811
Subtotal		8,650		212		24,997		613		33,647		825
Corporate office expenditures (b)		-		-		-		-		855		-
Total	$	8,650	$	212	$	24,997	$	613	$	34,502	$	825

(a)	Calculated using the weighted average number of units owned, including 38,784 core units, and 2012 acquisition units of 2,018 for the three months ended June 30, 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.

For the six months ended June 30, 2013
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	16,443	$	424	$	35,892	$	925	$	52,335	$	1,349
2012 Acquisition Communities		856		424		2,090		1,036		2,946		1,460
Sub-total		17,299		424		37,982		931		55,281		1,355
2013 Disposed Communities		63		191		-		-		63		191
Corporate office expenditures (b)		-		-		-		-		1,166		-
	$	17,362	$	424	$	37,982	$	931	$	56,510	$	1,345

(a)	Calculated using the weighted average number of units owned, including 38,784 core units, 2012 acquisition units of 2,018, and 2013 disposed units of 331 for the six months ended June 30, 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
	6/30/2013			6/30/2012		Change
Net Operating Income	$	99,429		$	95,304		4.3	%
Less: Non-recurring Capex @ 6%		(1,427	)		-		-
Adjusted Net Operating Income	$	98,002		$	95,304		2.8	%

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 June 30, 2013

($ in thousands)

Units

Cost

Costs

Physical

Property

when

Cost

Estimate

Incurred

Initial

Date

Complete

Leased

Occup

Type

Complete

Estimate

Per Unit

Start

Occup

Complete

(2)

(3)

Under construction:

Eleven55 Ripley

Mid-Rise and

379

111,000

293

85,568

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

30,404

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

31,812

1H 14

tbd

n/a

final development plan)

High-Rise

Tysons Corner, VA

Total

147,784

(1)	Classified as Construction in Progress at June 30, 2013.

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

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

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

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2013 Earnings Guidance
	Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year

2013 compared to 2012

FFO per share - 2013 actual/guidance	$	1.053		$	1.113		$	1.08 to $1.12		$	1.09 to $1.13		$	4.34 to $4.42

Actual/midpoint of guidance	$	1.053		$	1.113		$	1.10		$	1.11		$	4.38

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

Actual/projected improvement		7.5	%		16.5	%		0.6	%		1.5	%		6.2	%



2013 compared to 2012 based on "Operating FFO" - OFFO

OFFO per share - 2013 actual/guidance	$	1.053		$	1.113		$	1.08 to $1.12		$	1.11 to $1.15		$	4.36 to $4.44

Actual/midpoint of guidance	$	1.053		$	1.113		$	1.10		$	1.13		$	4.40

OFFO per share - 2012 actual	$	0.979		$	1.000		$	1.094		$	1.094		$	4.170

Actual/projected improvement		7.5	%		11.3	%		0.5	%		3.3	%		5.5	%

The difference between FFO and OFFO is expensed acquisition costs.

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2013 Earnings Guidance
	Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year

Core Property Assumptions:

Total revenue growth		3.7	%		3.7	%	3.6% to 4.1%			3.7% to 4.2%			3.6% to 4.1%

Expense growth		0.9	%		2.6	%	3.0% to 3.5%			4.5% to 5.0%			2.5% to 3.0%

NOI growth		5.4	%		4.3	%	4.0% to 4.5%			3.25% to 3.75%			4.25% to 4.75%


The midpoint of NOI growth is now 4.5% versus 4.0% previously provided.



Core Occupancy Assumptions:

2013 physical occupancy		95.7	%		95.9	%		95.8	%		95.5	%		95.7	%

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

Change in occupancy		0.8	%		-0.1	%		0.3	%		0.1	%		0.3	%

The occupancy projected for 2013 is now 95.7% versus 95.8% previously provided.

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2013 Earnings Guidance

General & Administrative costs are expected to range between $28.2 million and $29.0 million. The first two quarters included normal equity grants, pushing the dollar amount up higher in comparison to the year as a whole. The first quarter expense was $9.1 million and the second quarter expense was $7.3 million. The last two quarters settle back down to a range of $6.0 million to $6.2 million each.

Interest Expense is now projected to be $115 million to $116 million for the year. The decrease is due to lower anticipated acquisitions, improved bank line spreads and debt pay down from the overnight offering proceeds.

	Actual		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 $50 million to $150 million.	$	0	$	0	$	25M	$	75M	$	100M

Disposition range of $250 million to $350 million	$	109M	$	15M	$	63M	$	113M	$	300M

Anticipated expense from acquisition costs for 2013 of $800K versus actual of $2.7M 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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