Home Properties 8K Earnings Release and Supplemental Information | SEC 7 Feb 14

EXHIBIT 99

Home Properties, Inc.

Earnings Release and Supplemental Information

Fourth Quarter 2013

Table of Contents

	Page
Earnings Release	1-8
Property Results, Quarterly and Year-to-Date	9-16
Physical Occupancy Comparison by Region	17
Net Operating Results	18
New Lease and Renewal Lease Rents vs. Expiring Lease Rents	19
Resident Statistics	20
Net Operating Income Detail and Seasonality Factor for NAV Calculation	21
Operating Expense Detail	22
Discontinued Operations	23
Summary of Recent Acquisitions	24
Summary of Recent Sales	24
Breakdown of Units	25
Debt Summary Schedule	26-30
Recurring Capital Expenditure and Adjusted NOI Summary	31-33
Development Pipeline	34
2014 Earnings Guidance	35-38

FOR IMMEDIATE RELEASE

Home Properties Reports Fourth Quarter and Full Year 2013 Results

ROCHESTER, N.Y., February 6, 2014 – Home Properties, Inc. (NYSE: HME) today released financial results for the fourth quarter and year ended December 31, 2013. All results are reported on a diluted basis.

“Home Properties continued its track record of consistent performance in 2013, delivering solid operating results as well as further strengthening its balance sheet to enhance future financial flexibility,” said Edward J. Pettinella, Home Properties President and CEO.

Earnings per share ("EPS") for the quarter ended December 31, 2013 was $0.99 compared to $1.34 for the quarter ended December 31, 2012. The $0.35 reduction in fourth quarter 2013 EPS was primarily attributable to a $24.7 million lower gain on dispositions of property, partially offset by an $8.0 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 year ended December 31, 2013 was $2.93 compared to $2.69 for the year ended December 31, 2012. The $0.24 increase in EPS in 2013 is primarily attributable to a $33.6 million increase in income from continuing operations.

For the quarter ended December 31, 2013, Funds From Operations ("FFO") was $75.2 million, or $1.11 per share, compared to $68.3 million, or $1.09 per share, for the quarter ended December 31, 2012, which equates to a 1.6% increase on a per-share basis. FFO for the year ended December 31, 2013 was $4.37 per share, compared to $4.13 per share in the year-ago period, which equates to a 5.9% increase on a per-share basis. A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

Fourth Quarter Operating Results

For the fourth quarter of 2013, same-property comparisons (for 112 Core properties containing 38,440 apartment units owned since January 1, 2012) reflected an increase of 2.9% in base rental rates and an increase of 2.7% in total revenues compared to the same quarter a year ago. Net operating income (“NOI”) increased by 3.2% from the fourth quarter of 2012. Property level operating expenses increased by 1.9% compared to the prior year quarter, primarily due to increases in repairs & maintenance, legal & professional expense, and snow removal costs, which were partially offset by a decrease in natural gas heating costs.

Average physical occupancy for the Core properties was 94.9% during the fourth quarter of 2013, compared to 95.4% during the fourth quarter of 2012. Average monthly rental rates of $1,309 represent a 2.9% increase compared to the year-ago period.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 2 of 8

On a sequential basis, compared to the 2013 third quarter results for Core properties, rental income (excluding utility recovery) increased 0.6% in the fourth quarter of 2013, total revenues increased 1.3%, expenses were up 2.3% and NOI increased 0.7%. Average physical occupancy decreased 0.1% to 94.9%.

Physical occupancy for the 3,640 apartment units acquired/developed/redeveloped between January 1, 2012 and December 31, 2013 averaged 92.0% during the fourth quarter of 2013, at average monthly rents of $1,314.

Full Year Operating Results

For the year ended December 31, 2013, same-property comparisons for the Core properties reflected an increase in total revenues of 3.2% and an increase in total expenses of 1.8%, resulting in a 4.0% increase in NOI compared to 2012. Property level operating expenses increased primarily due to personnel expense, real estate taxes and snow removal costs. These increases were partially offset by decreases in repairs & maintenance, office & telephone and property insurance expense.

Average physical occupancy for the Core properties was 95.3% during 2013, down slightly from 95.4% a year ago, with average monthly rental rates of $1,294, an increase of 3.2% over the prior year period.

Acquisitions/Dispositions

As previously reported, during the fourth quarter of 2013, the Company acquired one apartment community with 205 units in the Philadelphia region and one apartment community with 252 units in the Boston region. The combined purchase price of $55.8 million was paid in cash. In connection with these acquisitions, closing costs of $0.2 million were incurred and are included in other expenses in the fourth quarter of 2013.

During the fourth quarter of 2013, as previously reported, the Company sold a 344-unit apartment community in the Washington, D.C. region for $68 million. A gain on sale of $36.2 million was recorded in the fourth quarter of 2013 related to this sale.

For the year ended December 31, 2013, the Company sold four apartment communities with 1,013 units for a total consideration of $192.1 million. The weighted average historical capitalization rate on these sales was 5.8% after applying a 2.7% management fee and before capital expenditures.

Development

Construction continued as planned on Eleven55 Ripley and Courts at Spring Mill Station.

The Company purchased a land parcel located in Linthicum, Md. in the fourth quarter of 2013 for $13.8 million, which includes the closing costs. A construction start date for the approximately 300 apartment units which will comprise the Concorde Circle community has not been determined, but is not anticipated to occur earlier than late 2014 or into 2015.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 3 of 8

Capital Markets Activities

On November 11, 2013, Moody’s Investors Services assigned a Baa2 issuer rating to Home Properties.

As of December 31, 2013, the Company’s ratio of debt-to-total market capitalization was 40.5% (based on a December 31, 2013 stock price of $53.62 used to determine equity value), with $193 million outstanding on its $450 million revolving credit facility and $9.9 million of unrestricted cash on hand. Total debt of $2.5 billion was outstanding, at interest rates averaging 4.4% and with staggered maturities averaging four years. Approximately 89% of total indebtedness was at fixed rates. Interest coverage for the quarter was 3.9 times and the fixed charge ratio was 3.6 times. For the full year, interest coverage was 3.5 times and the fixed charge ratio was 3.3 times.

During the quarter, the Company repaid a $27.6 million variable-rate mortgage in connection with a property disposition, which triggered a prepayment penalty of $0.3 million. In addition, the Company repaid two mortgages securing one property totaling $29.1 million. This property is now part of the unencumbered asset pool. As of December 31, 2013, the unencumbered asset pool represented 47.8% of total value, up from 37.5% at December 31, 2012.

During the fourth quarter of 2013, the Company did not issue any new shares through its At-The-Market equity offering program. There are approximately two million common shares that remain available under this program.

Outlook

For 2014, the Company expects FFO between $4.44 and $4.60 per share, which will produce FFO per share growth of 1.6% to 5.3% when compared to 2013 results. “FFO growth in 2014, especially the first half of the year, is impacted by the continued dilution from the Company’s July 2013 public stock offering,” said David P. Gardner, Executive Vice President and Chief Financial Officer.

The guidance range on FFO per share results for the first quarter of 2014 is $1.02 to $1.06. This guidance range reflects management’s current assessment of economic and market conditions. The assumptions for the 2014 projections are included with the published supplemental information.

Supplemental Information

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

Fourth Quarter 2013 Earnings Conference Call

The Company will conduct a conference call and simultaneous webcast on February 7, 2014 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).

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 4 of 8

First Quarter 2014 Conference/Event Schedule

Home Properties is scheduled to participate in Wells Fargo Securities’ Real Estate Securities Conference on February 27, 2014 in New York City and in Citi’s 2014 Global Property CEO Conference March 3-5, 2014 in Hollywood, FL. Presentation materials will be available at www.homeproperties.com in the “Investors” section.

First Quarter 2014 Earnings Release and Conference Call

The Company’s first quarter 2014 financial results are scheduled to be released after the stock market closes on Thursday, May 1, 2014. A conference call, which will be simultaneously webcast, is scheduled for Friday, May 2, 2014 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 120 communities containing 42,297 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 5 of 8

HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
Fourth Quarter Results:	Occupancy(a)							4Q 2013	4Q 2013 vs. 4Q 2012 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
		4Q 2013			4Q 2012		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		94.9	%		95.4	%	$	1,309		2.9	%		2.7	%		1.9	%		3.2	%
Non-Core Properties(c)		92.0	%	NA			$	1,314	NA			NA			NA			NA
TOTAL PORTFOLIO		94.7	%	NA			$	1,310	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)		95.3	%		95.4	%	$	1,294		3.2	%		3.2	%		1.8	%		4.0	%
Non-Core Properties(c)		91.0	%	NA			$	1,306	NA			NA			NA			NA
TOTAL PORTFOLIO		95.0	%	NA			$	1,295	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 112 properties with 38,440 apartment units owned throughout 2012 and 2013.

(c)

Non-Core Properties consist of 7 properties with 3,640 apartment units acquired, developed, or redeveloped subsequent to January 1, 2012, such that full year comparable operating results are not available. Non-Core Properties excludes properties still under development where construction is not 100% complete.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 6 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2013			2012			2013			2012
Rental income	$	153,793		$	149,169		$	608,994		$	575,969
Property other income		13,490			12,896			53,426			50,709
Other income		508			247			1,180			311
Total revenues		167,791			162,312			663,600			626,989
Operating and maintenance		59,647			58,553			238,510			229,290
General and administrative		5,935			6,807			28,507			34,174
Interest		26,334			31,597			113,911			123,874
Depreciation and amortization		44,335			42,074			172,903			161,047
Other expenses		264			15			312			2,741
Total expenses		136,515			139,046			554,143			551,126
Income from continuing operations		31,276			23,266			109,457			75,863
Discontinued operations
Income (loss) from discontinued operations		(247	)		(88	)		917			7,227
Gain on disposition of property		36,201			60,865			81,205			80,532
Discontinued operations		35,954			60,777			82,122			87,759
Net income		67,230			84,043			191,579			163,622
Net income attributable to noncontrolling interest		(10,311	)		(14,269	)		(30,706	)		(28,320	)
Net income attributable to common stockholders	$	56,919		$	69,774		$	160,873		$	135,302
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income attributable to common stockholders	$	56,919		$	69,774		$	160,873		$	135,302
Real property depreciation and amortization		43,792			42,970			172,624			166,411
Noncontrolling interest		10,311			14,269			30,706			28,320
Gain on disposition of property		(36,201	)		(60,865	)		(81,205	)		(80,532	)
FFO - basic and diluted, as defined by NAREIT		74,821			66,148			282,998			249,501
Loss from early extinguishment of debt in connection with sale of real estate		366			2,157			1,782			2,157
FFO - basic and diluted (1)	$	75,187		$	68,305		$	284,780		$	251,658

(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.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 7 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2013			2012			2013			2012
FFO – basic and diluted	$	75,187		$	68,305		$	284,780		$	251,658
FFO – basic and diluted	$	75,187		$	68,305		$	284,780		$	251,658
Acquisition costs of closed deals included in other expenses		264			15			312			2,741
Operating FFO (2)	$	75,451		$	68,320		$	285,092		$	254,399
FFO – basic and diluted	$	75,187		$	68,305		$	284,780		$	251,658
Recurring non-revenue generating capital expenses		(8,857	)		(9,163	)		(35,687	)		(36,457	)
AFFO (3)	$	66,330		$	59,142		$	249,093		$	215,201
Operating FFO	$	75,451		$	68,320		$	285,092		$	254,399
Recurring non-revenue generating capital expenses		(8,857	)		(9,163	)		(35,687	)		(36,457	)
Operating AFFO (2) (3)	$	66,594		$	59,157		$	249,405		$	217,942
Weighted average shares/units outstanding:
Shares – basic		56,944.9			51,314.0			54,328.5			49,744.6
Shares – diluted		57,327.9			51,920.1			54,820.2			50,382.6
Shares/units – basic (4)		67,270.3			61,829.4			64,702.1			60,364.7
Shares/units – diluted (4)		67,653.3			62,435.6			65,193.8			61,002.7
Per share/unit:
Net income – basic	$	1.00		$	1.36		$	2.96		$	2.72
Net income – diluted	$	0.99		$	1.34		$	2.93		$	2.69
FFO – basic	$	1.12		$	1.10		$	4.40		$	4.17
FFO – diluted	$	1.11		$	1.09		$	4.37		$	4.13
Operating FFO (2)	$	1.12		$	1.09		$	4.37		$	4.17
AFFO (3)	$	0.98		$	0.95		$	3.82		$	3.53
Operating AFFO (2) (3)	$	0.98		$	0.95		$	3.83		$	3.57
Common Dividend paid	$	0.70		$	0.66		$	2.80		$	2.64

(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.

Home Properties Reports Fourth Quarter and Full Year 2013 Results

For Immediate Release: February 6, 2014

Page 8 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	December 31, 2013			December 31, 2012
Land	$	786,868		$	791,604
Construction in progress		187,976			83,241
Buildings, improvements and equipment		4,645,921			4,580,381
		5,620,765			5,455,226
Accumulated depreciation		(1,243,243	)		(1,108,840	)
Real estate, net		4,377,522			4,346,386

Cash and cash equivalents		9,853			21,092
Cash in escrows		23,738			26,971
Accounts receivable		14,937			13,406
Prepaid expenses		22,089			19,504
Deferred charges		11,945			13,429
Other assets		7,793			10,704
Total assets	$	4,467,877		$	4,451,492
Mortgage notes payable	$	1,814,217		$	2,165,027
Unsecured notes payable		450,000			450,000
Unsecured line of credit		193,000			162,500
Accounts payable		27,540			22,691
Accrued interest payable		8,392			9,974
Accrued expenses and other liabilities		33,936			33,887
Security deposits		18,479			19,146
Total liabilities		2,545,564			2,863,225

Common stockholders’ equity		1,629,253			1,320,968
Noncontrolling interest		293,060			267,299
Total equity		1,922,313			1,588,267
Total liabilities and equity	$	4,467,877		$	4,451,492

Total shares/units outstanding:
Common stock		56,961.6			51,508.1
Operating partnership units		10,287.2			10,455.6
		67,248.8			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

###

Property Results

Fourth Quarter 2013															4Q '13 Versus 4Q '12
			4Q '13												% Growth												4Q '13
	# of		Company			Date	4Q '13		4Q '13			4Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Baltimore
Annapolis Roads		282				6/17/2010	$	1,337		89.8	%		89.8	%		2.6	%		1.6	%		2.6	%		1.0	%
Bonnie Ridge		960				7/1/1999		1,174		94.3	%		94.7	%		1.5	%		(1.2	%)		3.5	%		(3.4	%)
Canterbury		618				7/15/1999		1,062		94.5	%		93.3	%		3.9	%		5.7	%		5.0	%		6.1	%
Charleston Place		858				9/30/2010		1,248		96.1	%		96.0	%		3.8	%		4.7	%		11.8	%		1.9	%
Country Village		344				4/30/1998		1,046		93.4	%		92.9	%		(1.8	%)		(2.5	%)		(4.5	%)		(1.3	%)
Dunfield		312				11/1/2007		1,248		95.7	%		95.8	%		2.4	%		2.2	%		13.6	%		(2.5	%)
Fox Hall		720				3/28/2007		943		93.3	%		91.6	%		4.4	%		9.3	%		3.1	%		13.7	%
Gateway Village		132				7/15/1999		1,435		96.8	%		96.2	%		4.3	%		5.0	%		2.4	%		6.4	%
Heritage Woods		164				10/4/2006		1,186		94.4	%		94.8	%		0.1	%		0.0	%		3.3	%		(1.6	%)
Howard Crossing		1,350				6/28/2012		1,149		94.0	%		89.9	%		1.8	%		5.6	%		(3.5	%)		10.8	%
Middlebrooke		208				4/1/2010		1,025		96.2	%		95.9	%		2.9	%		4.1	%		(3.7	%)		8.4	%
Mill Towne Village		384				5/31/2001		965		94.0	%		96.2	%		3.3	%		(0.2	%)		(0.2	%)		(0.2	%)
Morningside Heights		1,050				4/30/1998		982		92.7	%		92.5	%		4.0	%		4.3	%		1.0	%		6.0	%
Owings Run		504				7/15/1999		1,316		94.9	%		94.6	%		2.4	%		4.2	%		1.7	%		5.3	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,271		94.0	%		94.8	%		3.2	%		2.8	%		3.5	%		2.3	%
Saddle Brooke		468				10/29/2008		1,166		95.8	%		93.0	%		3.5	%		7.1	%		0.2	%		10.5	%
Selford		102				7/15/1999		1,477		98.1	%		96.8	%		3.4	%		8.1	%		0.3	%		11.4	%
The Apts. at Cambridge Court		544				8/23/2011		1,370		91.6	%		92.5	%		(0.8	%)		(0.9	%)		1.4	%		(2.1	%)
The Coves at Chesapeake		469				11/20/2006		1,349		91.8	%		94.6	%		2.9	%		0.7	%		2.6	%		(0.1	%)
The Greens at Columbia		168				7/29/2010		1,500		92.2	%		95.5	%		3.3	%		0.3	%		0.8	%		0.0	%
Top Field		156				10/4/2006		1,366		94.9	%		95.9	%		3.6	%		2.6	%		5.8	%		1.3	%
Village Square		370				7/15/1999		1,239		96.5	%		94.4	%		3.0	%		5.3	%		3.5	%		6.2	%
Westbrooke		110				4/1/2010		916		95.4	%		95.1	%		3.9	%		4.2	%		(3.4	%)		10.2	%
Total Baltimore		10,477		24.8	%		$	1,170		94.1	%		94.1	%		2.7	%		3.0	%		3.0	%		3.0	%		23.0	%

Boston
Gardencrest		696				6/28/2002	$	1,757		95.6	%		96.1	%		5.7	%		4.0	%		1.4	%		5.2	%
Highland House		172				5/31/2006		1,312		94.5	%		95.2	%		3.7	%		2.6	%		1.5	%		3.4	%
Liberty Commons		120				8/30/2006		1,326		97.6	%		94.2	%		(0.5	%)		4.9	%		(7.4	%)		11.5	%
Liberty Place		107				6/6/2006		1,577		96.0	%		94.6	%		2.9	%		6.1	%		(1.2	%)		10.6	%
Middlesex Crossing Apartments		252				12/18/2013		1,343		95.8	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		1,002		97.7	%		96.6	%		5.2	%		5.9	%		1.4	%		8.9	%
Stone Ends		280				2/12/2003		1,387		95.3	%		96.4	%		4.8	%		2.0	%		3.2	%		1.4	%
The Commons at Haynes Farm		302				7/15/2011		1,389		96.3	%		96.6	%		5.1	%		3.0	%		12.8	%		(1.2	%)
The Heights at Marlborough		348				9/7/2006		1,334		96.9	%		94.1	%		4.2	%		6.2	%		(2.1	%)		12.0	%
The Meadows at Marlborough		264				9/7/2006		1,301		96.3	%		96.3	%		5.7	%		5.9	%		(6.4	%)		15.2	%
The Townhomes of Beverly		204				2/15/2007		1,671		93.2	%		95.6	%		5.9	%		2.6	%		6.3	%		0.6	%
The Village at Marshfield		276				3/17/2004		1,292		94.5	%		95.6	%		5.2	%		2.0	%		(1.3	%)		3.8	%
Westwoods		35				4/30/2007		1,396		97.4	%		96.0	%		4.4	%		(0.9	%)		(21.3	%)		16.2	%
Total Boston		3,556		8.4	%		$	1,404		95.8	%		95.8	%		4.9	%		4.0	%		0.7	%		5.9	%		8.5	%

Page 9

Property Results

Fourth Quarter 2013															4Q '13 Versus 4Q '12
			4Q '13												% Growth												4Q '13
	# of		Company			Date	4Q '13		4Q '13			4Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Chicago
Blackhawk		371				10/20/2000	$	935		92.9	%		94.0	%		3.3	%		3.1	%		6.8	%		(0.3	%)
Courtyards Village		224				8/29/2001		951		97.0	%		97.1	%		5.5	%		6.0	%		5.7	%		6.3	%
Cypress Place		192				12/27/2000		1,082		96.6	%		96.9	%		5.4	%		4.0	%		(5.3	%)		10.5	%
Lakeview Townhomes		120				10/18/2010		1,263		97.4	%		89.4	%		0.8	%		10.7	%		10.7	%		10.6	%
The Colony		783				9/1/1999		942		97.7	%		95.7	%		3.5	%		6.8	%		12.2	%		3.8	%
The Gates of Deer Grove		204				12/15/2011		1,079		95.4	%		96.7	%		4.4	%		5.2	%		3.9	%		6.1	%
The New Colonies		672				6/23/1998		769		96.1	%		95.4	%		(0.7	%)		(0.0	%)		12.3	%		(10.0	%)
Total Chicago		2,566		6.1	%		$	933		96.3	%		95.3	%		2.8	%		4.5	%		8.3	%		1.8	%		4.0	%

Florida
The Hamptons		668				7/7/2004	$	1,077		94.6	%		94.0	%		5.1	%		6.7	%		12.9	%		1.5	%
Vinings at Hampton Village		168				7/7/2004		1,200		97.0	%		96.6	%		5.2	%		7.0	%		6.5	%		7.4	%
Total Florida		836		2.0	%		$	1,102		95.1	%		94.6	%		5.2	%		6.8	%		11.4	%		2.8	%		1.4	%

Long Island
Bayview / Colonial		160				11/1/2000	$	1,376		96.9	%		98.7	%		3.3	%		1.3	%		4.5	%		(0.9	%)
Cambridge Village		82				3/1/2002		1,967		97.2	%		99.3	%		3.5	%		2.4	%		0.8	%		3.3	%
Crescent Club		257				9/30/2010		1,446		97.4	%		97.5	%		5.9	%		6.7	%		4.7	%		7.8	%
Devonshire Hills		656				7/16/2001		1,689		97.5	%		96.2	%		1.8	%		3.5	%		(58.7	%)		39.9	%
Hawthorne Court		434				4/4/2002		1,546		95.8	%		95.4	%		3.9	%		4.0	%		6.7	%		1.7	%
Heritage Square		80				4/4/2002		1,939		97.7	%		98.6	%		4.1	%		2.7	%		(28.2	%)		22.8	%
Holiday Square		144				5/31/2002		1,335		96.6	%		98.4	%		4.2	%		2.7	%		0.3	%		4.3	%
Lake Grove		368				2/3/1997		1,579		95.3	%		96.4	%		3.3	%		1.8	%		7.5	%		(1.4	%)
Mid-Island Estates		232				7/1/1997		1,512		97.8	%		98.9	%		2.7	%		1.6	%		7.2	%		(1.9	%)
Sayville Commons		342				7/15/2005		1,710		98.2	%		97.6	%		3.9	%		3.4	%		(44.6	%)		40.7	%
Southern Meadows		452				6/29/2001		1,548		95.5	%		96.8	%		4.1	%		1.3	%		450.5	%		(36.1	%)
Westwood Village		242				3/1/2002		2,595		94.4	%		98.0	%		2.7	%		(1.2	%)		1.4	%		(2.8	%)
Woodmont Village		97				3/1/2002		1,429		96.9	%		96.5	%		3.5	%		2.8	%		(3.3	%)		6.1	%
Yorkshire Village		40				3/1/2002		1,978		97.8	%		99.9	%		2.1	%		(3.2	%)		(35.6	%)		23.3	%
Total Long Island		3,586		8.5	%		$	1,657		96.6	%		97.1	%		3.4	%		2.4	%		(4.1	%)		6.1	%		11.3	%

Page 10

Property Results

Fourth Quarter 2013															4Q '13 Versus 4Q '12
			4Q '13												% Growth												4Q '13
	# of		Company			Date	4Q '13		4Q '13			4Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
New Jersey
Barrington Gardens		148				3/1/2005	$	1,393		97.0	%		97.9	%		6.1	%		3.9	%		8.8	%		1.3	%
Chatham Hill		308				1/30/2004		2,032		93.2	%		94.5	%		5.4	%		4.4	%		24.4	%		(1.5	%)
East Hill Gardens		33				7/8/1998		1,657		98.4	%		99.5	%		3.5	%		1.4	%		1.9	%		1.1	%
Hackensack Gardens		198				3/1/2005		1,240		98.2	%		98.2	%		4.1	%		5.7	%		(0.8	%)		10.9	%
Jacob Ford Village		270				2/15/2007		1,438		97.2	%		98.1	%		5.8	%		5.4	%		2.2	%		6.9	%
Lakeview		106				7/8/1998		1,490		96.9	%		96.9	%		2.7	%		1.4	%		2.3	%		0.8	%
Northwood		134				1/30/2004		1,450		97.1	%		98.3	%		3.2	%		5.0	%		7.8	%		2.9	%
Oak Manor		77				7/8/1998		2,058		93.0	%		97.1	%		6.2	%		2.8	%		13.7	%		(3.0	%)
Pleasant View		1,142				7/8/1998		1,239		96.6	%		97.0	%		3.5	%		4.3	%		4.5	%		4.2	%
Pleasure Bay		270				7/8/1998		1,168		94.3	%		98.2	%		6.8	%		2.7	%		1.1	%		4.2	%
Royal Gardens		550				5/28/1997		1,337		97.5	%		96.1	%		2.3	%		4.8	%		0.9	%		7.5	%
Wayne Village		275				7/8/1998		1,495		94.4	%		97.4	%		2.7	%		1.1	%		(0.7	%)		2.1	%
Windsor Realty		67				7/8/1998		1,358		98.3	%		96.5	%		0.9	%		3.9	%		1.1	%		5.8	%
Total New Jersey		3,578		8.5	%		$	1,397		96.1	%		96.9	%		4.0	%		4.0	%		4.7	%		3.6	%		9.0	%

Philadelphia
Glen Manor		174				9/23/1997		834		95.0	%		94.9	%		1.2	%		1.2	%		3.9	%		(1.3	%)
Golf Club		399				3/15/2000		1,196		94.4	%		95.1	%		3.6	%		3.1	%		(0.2	%)		4.8	%
Hill Brook Place		274				7/28/1999		952		97.2	%		93.8	%		(0.7	%)		3.6	%		(5.3	%)		12.6	%
Home Properties of Bryn Mawr		316				3/15/2000		1,543		95.7	%		97.4	%		4.6	%		1.8	%		(8.4	%)		6.7	%
Home Properties of Devon		631				3/15/2000		1,302		95.0	%		95.4	%		3.2	%		3.4	%		(7.4	%)		9.6	%
New Orleans Park		442				7/28/1999		921		95.2	%		94.4	%		1.2	%		2.5	%		(6.3	%)		11.5	%
Racquet Club East		466				7/7/1998		1,143		93.8	%		93.9	%		1.7	%		1.4	%		(4.4	%)		5.5	%
Racquet Club South		103				5/27/1999		978		92.4	%		93.7	%		2.5	%		1.9	%		(3.5	%)		7.5	%
Ridley Brook		244				7/28/1999		990		93.1	%		95.1	%		0.9	%		(2.2	%)		(0.3	%)		(3.9	%)
Sherry Lake		298				7/23/1998		1,335		94.9	%		94.9	%		2.1	%		3.2	%		(2.0	%)		5.8	%
Stone Hill Apartments		205				11/27/2013		900		89.9	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,266		96.7	%		96.6	%		4.5	%		4.3	%		(0.4	%)		7.3	%
The Landings		384				11/22/1996		1,116		94.4	%		96.1	%		2.0	%		(1.4	%)		5.6	%		(5.7	%)
Trexler Park		250				3/15/2000		1,176		91.8	%		95.1	%		3.4	%		(0.9	%)		3.7	%		(4.0	%)
Trexler Park West		216				8/15/2008		1,394		94.5	%		96.4	%		(0.1	%)		(2.9	%)		3.3	%		(6.0	%)
Waterview		203				7/14/2011		1,109		96.6	%		92.7	%		3.4	%		7.5	%		36.4	%		(11.0	%)
William Henry		363				3/15/2000		1,241		93.6	%		95.1	%		2.6	%		1.5	%		8.3	%		(2.4	%)
Total Philadelphia		5,114		12.2	%		$	1,173		94.7	%		95.2	%		2.4	%		1.8	%		(0.2	%)		3.1	%		10.6	%

Page 11

Property Results

Fourth Quarter 2013															4Q '13 Versus 4Q '12
			4Q '13												% Growth												4Q '13
	# of		Company			Date	4Q '13		4Q '13			4Q '12			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Washington, D.C.
1200 East West		247				5/11/2010	$	1,899		96.6	%		96.3	%		0.6	%		3.2	%		(40.2	%)		40.5	%
Arbor Park of Alexandria		851				Redevelopment		1,575		86.1	%		77.4	%		4.1	%		14.0	%		2.2	%		20.8	%
Braddock Lee		255				3/13/1998		1,443		97.6	%		95.8	%		0.4	%		1.4	%		(0.6	%)		2.5	%
Cider Mill		864				9/27/2002		1,262		96.3	%		96.8	%		4.3	%		4.6	%		3.7	%		5.2	%
Cinnamon Run		511				12/28/2005		1,311		92.7	%		95.3	%		2.5	%		0.6	%		(8.8	%)		4.7	%
Courts at Huntington Station		421				6/15/2011		2,008		90.5	%		92.9	%		1.1	%		(0.3	%)		12.7	%		(6.7	%)
East Meadow		150				8/1/2000		1,495		94.7	%		95.1	%		3.1	%		0.1	%		3.5	%		(1.7	%)
Eleven55 Ripley		90				Under Construction		2,068		n/a			n/a			n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,015		94.6	%		95.0	%		2.8	%		1.8	%		3.1	%		0.9	%
Hunters Glen		108				4/19/2011		1,040		89.6	%		95.7	%		4.8	%		(1.2	%)		19.7	%		(12.0	%)
Mount Vernon Square		1,387				12/27/2006		1,353		92.8	%		94.3	%		3.1	%		2.3	%		4.7	%		1.1	%
Newport Village		937				10/17/2011		1,579		91.6	%		94.0	%		1.3	%		(0.6	%)		3.5	%		(2.8	%)
Park Shirlington		294				3/13/1998		1,456		95.7	%		97.3	%		3.6	%		3.0	%		1.4	%		3.9	%
Peppertree Farm		879				12/28/2005		1,283		94.5	%		93.2	%		2.5	%		4.0	%		(3.9	%)		8.8	%
Seminary Hill		296				7/1/1999		1,435		97.6	%		96.3	%		3.8	%		6.5	%		9.3	%		4.5	%
Seminary Towers		544				7/1/1999		1,484		94.7	%		95.5	%		1.4	%		(0.2	%)		4.5	%		(2.9	%)
Somerset Park		108				10/11/2011		1,528		96.8	%		96.1	%		2.3	%		3.9	%		(0.9	%)		6.9	%
Tamarron		132				7/15/1999		1,652		93.8	%		95.0	%		1.0	%		0.8	%		9.5	%		(2.2	%)
The Apts. at Cobblestone Square		314				6/14/2012		1,330		96.6	%		97.0	%		3.9	%		5.1	%		(2.8	%)		10.2	%
The Apts. at Wellington Trace		240				3/2/2004		1,424		94.1	%		97.1	%		0.8	%		(2.3	%)		5.9	%		(5.7	%)
The Courts at Dulles		411				11/30/2011		1,552		93.9	%		94.6	%		0.2	%		0.3	%		1.3	%		(0.2	%)
The Courts at Fair Oaks		364				9/30/2010		1,548		96.2	%		96.5	%		1.3	%		2.6	%		2.4	%		2.6	%
The Manor - MD		435				8/31/2001		1,368		91.7	%		96.4	%		2.5	%		(1.6	%)		8.6	%		(6.8	%)
The Manor - VA		198				2/19/1999		1,190		95.3	%		95.6	%		5.5	%		4.5	%		(4.5	%)		10.1	%
The Manor East		164				5/11/2012		1,151		91.8	%		91.9	%		5.3	%		4.3	%		(8.8	%)		14.5	%
The Sycamores		185				12/16/2002		1,484		94.9	%		96.6	%		0.7	%		2.3	%		4.4	%		1.2	%
Village at Potomac Falls		247				8/5/2010		1,466		94.2	%		94.7	%		2.5	%		1.8	%		(0.7	%)		3.2	%
West Springfield		244				11/18/2002		1,601		93.4	%		95.6	%		1.5	%		0.5	%		12.3	%		(4.6	%)
Westchester West		345				12/30/2008		1,404		92.7	%		93.6	%		3.3	%		3.5	%		18.5	%		(4.2	%)
Woodleaf		228				3/19/2004		1,301		95.5	%		94.8	%		1.4	%		1.2	%		0.1	%		1.7	%
Woodway at Trinity Centre		504				5/17/2012		1,419		95.9	%		96.1	%		0.7	%		0.9	%		(2.9	%)		2.8	%
Total Washington, D.C.		12,457		29.5	%		$	1,424		94.0	%		95.0	%		2.2	%		1.7	%		1.9	%		1.5	%		32.2	%

Total Properties		42,170		100.0	%		$	1,310		94.6	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		38,440					$	1,309		94.9	%		95.4	%		2.9	%		2.7	%		1.9	%		3.2	%

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

(2)	For development properties the date reflects when all units became available to rent.

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

Page 12

Property Results

December 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 (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Baltimore
Annapolis Roads		282				6/17/2010	$	1,316		92.0	%		92.2	%		2.8	%		2.8	%		0.6	%		4.0	%
Bonnie Ridge		960				7/1/1999		1,167		94.0	%		95.5	%		2.2	%		0.2	%		2.5	%		(0.9	%)
Canterbury		618				7/15/1999		1,044		95.0	%		94.8	%		3.7	%		3.3	%		(0.9	%)		5.6	%
Charleston Place		858				9/30/2010		1,231		95.9	%		96.4	%		4.5	%		4.6	%		5.7	%		4.1	%
Country Village		344				4/30/1998		1,044		94.1	%		94.8	%		(0.4	%)		(1.2	%)		0.8	%		(2.4	%)
Dunfield		312				11/1/2007		1,242		95.0	%		95.4	%		3.4	%		2.7	%		2.7	%		2.6	%
Fox Hall		720				3/28/2007		924		93.1	%		92.3	%		3.2	%		4.4	%		1.3	%		6.6	%
Gateway Village		132				7/15/1999		1,418		96.1	%		96.4	%		3.7	%		3.4	%		2.1	%		4.1	%
Heritage Woods		164				10/4/2006		1,186		95.3	%		95.7	%		(0.7	%)		(1.1	%)		0.3	%		(1.9	%)
Howard Crossing		1,350				6/28/2012		1,132		94.8	%		n/a			n/a			n/a			n/a			n/a
Middlebrooke		208				4/1/2010		1,010		96.2	%		94.8	%		2.2	%		4.4	%		0.1	%		6.7	%
Mill Towne Village		384				5/31/2001		955		95.7	%		95.6	%		3.4	%		3.4	%		(1.8	%)		6.5	%
Morningside Heights		1,050				4/30/1998		967		93.2	%		92.3	%		4.1	%		4.5	%		(3.1	%)		8.6	%
Owings Run		504				7/15/1999		1,303		95.6	%		95.1	%		2.6	%		4.3	%		4.2	%		4.3	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,253		95.9	%		96.2	%		2.6	%		3.1	%		3.2	%		3.1	%
Saddle Brooke		468				10/29/2008		1,151		94.3	%		94.3	%		4.8	%		5.3	%		2.8	%		6.5	%
Selford		102				7/15/1999		1,466		96.6	%		96.6	%		4.1	%		4.3	%		(1.4	%)		6.7	%
The Apts. at Cambridge Court		544				8/23/2011		1,372		91.9	%		92.6	%		1.7	%		0.6	%		5.7	%		(2.0	%)
The Coves at Chesapeake		469				11/20/2006		1,337		93.0	%		94.2	%		4.0	%		2.4	%		1.2	%		3.0	%
The Greens at Columbia		168				7/29/2010		1,479		94.2	%		94.1	%		3.6	%		3.7	%		2.5	%		4.1	%
Top Field		156				10/4/2006		1,348		96.0	%		95.3	%		2.5	%		2.3	%		6.1	%		0.7	%
Village Square		370				7/15/1999		1,224		95.2	%		95.6	%		2.6	%		2.0	%		6.7	%		(0.2	%)
Westbrooke		110				4/1/2010		903		95.8	%		95.2	%		4.7	%		6.4	%		2.7	%		9.2	%
Total Baltimore		10,477		24.8	%		$	1,157		94.4	%		94.5	%		3.1	%		2.9	%		2.0	%		3.3	%		23.2	%

Boston
Gardencrest		696				6/28/2002	$	1,717		96.4	%		96.7	%		5.0	%		4.2	%		3.7	%		4.4	%
Highland House		172				5/31/2006		1,296		95.2	%		96.5	%		4.2	%		2.2	%		3.3	%		1.5	%
Liberty Commons		120				8/30/2006		1,312		97.4	%		96.3	%		0.2	%		2.4	%		3.8	%		1.8	%
Liberty Place		107				6/6/2006		1,552		96.1	%		95.9	%		2.9	%		4.2	%		5.3	%		3.6	%
Middlesex Crossing Apartments		252				12/18/2013		1,343		95.8	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		975		97.0	%		96.6	%		3.6	%		4.6	%		3.0	%		5.7	%
Stone Ends		280				2/12/2003		1,360		95.7	%		95.7	%		3.8	%		3.5	%		(3.5	%)		7.5	%
The Commons at Haynes Farm		302				7/15/2011		1,362		96.8	%		96.3	%		5.7	%		5.6	%		15.2	%		1.0	%
The Heights at Marlborough		348				9/7/2006		1,310		95.8	%		94.5	%		4.8	%		4.6	%		(1.3	%)		8.5	%
The Meadows at Marlborough		264				9/7/2006		1,275		96.2	%		95.1	%		6.1	%		7.6	%		(4.4	%)		16.4	%
The Townhomes of Beverly		204				2/15/2007		1,631		95.9	%		96.4	%		5.6	%		4.3	%		4.2	%		4.4	%
The Village at Marshfield		276				3/17/2004		1,266		95.2	%		96.0	%		5.4	%		3.6	%		(4.6	%)		8.6	%
Westwoods		35				4/30/2007		1,390		97.6	%		97.0	%		6.1	%		4.1	%		(5.8	%)		11.4	%
Total Boston		3,556		8.4	%		$	1,375		96.2	%		96.1	%		4.7	%		4.4	%		2.0	%		5.8	%		8.3	%

Page 13

Property Results

December 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 (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Chicago
Blackhawk		371				10/20/2000	$	922		94.5	%		95.5	%		2.9	%		2.7	%		14.2	%		(6.4	%)
Courtyards Village		224				8/29/2001		933		97.7	%		97.1	%		4.6	%		5.5	%		1.2	%		9.3	%
Cypress Place		192				12/27/2000		1,063		97.6	%		97.3	%		5.5	%		5.8	%		5.5	%		5.9	%
Lakeview Townhomes		120				10/18/2010		1,252		96.7	%		93.9	%		1.9	%		5.5	%		5.8	%		5.3	%
The Colony		783				9/1/1999		929		97.2	%		96.5	%		3.5	%		5.0	%		12.3	%		0.7	%
The Gates of Deer Grove		204				12/15/2011		1,069		95.4	%		94.5	%		2.6	%		4.7	%		10.4	%		0.6	%
The New Colonies		672				6/23/1998		771		96.1	%		95.2	%		(0.3	%)		1.1	%		12.3	%		(8.7	%)
Total Chicago		2,566		6.1	%		$	923		96.5	%		95.8	%		2.6	%		3.9	%		10.3	%		(0.7	%)		3.9	%

Florida
The Hamptons		668				7/7/2004	$	1,057		94.1	%		94.9	%		5.0	%		4.6	%		1.3	%		7.9	%
Vinings at Hampton Village		168				7/7/2004		1,179		96.9	%		96.0	%		4.9	%		5.7	%		(3.0	%)		14.2	%
Total Florida		836		2.0	%		$	1,082		94.7	%		95.1	%		5.0	%		4.9	%		0.3	%		9.3	%		1.4	%

Long Island
Bayview / Colonial		160				11/1/2000	$	1,361		97.9	%		98.6	%		3.7	%		3.8	%		6.4	%		2.1	%
Cambridge Village		82				3/1/2002		1,939		98.0	%		97.9	%		3.5	%		3.5	%		0.4	%		5.6	%
Crescent Club		257				9/30/2010		1,407		96.7	%		96.2	%		4.7	%		5.5	%		3.5	%		6.8	%
Devonshire Hills		656				7/16/2001		1,671		96.9	%		96.5	%		1.8	%		1.4	%		(15.0	%)		10.6	%
Hawthorne Court		434				4/4/2002		1,519		96.8	%		96.7	%		2.8	%		3.5	%		4.1	%		3.0	%
Heritage Square		80				4/4/2002		1,899		98.5	%		98.1	%		3.4	%		3.6	%		(10.6	%)		14.1	%
Holiday Square		144				5/31/2002		1,318		98.6	%		98.7	%		3.9	%		4.1	%		2.6	%		5.1	%
Lake Grove		368				2/3/1997		1,549		95.9	%		96.4	%		3.0	%		3.4	%		4.9	%		2.5	%
Mid-Island Estates		232				7/1/1997		1,499		97.8	%		98.6	%		2.6	%		1.2	%		8.3	%		(2.8	%)
Sayville Commons		342				7/15/2005		1,685		97.7	%		96.7	%		3.4	%		4.2	%		(9.9	%)		15.9	%
Southern Meadows		452				6/29/2001		1,525		95.9	%		96.4	%		4.2	%		3.9	%		32.3	%		(9.7	%)
Westwood Village		242				3/1/2002		2,571		95.3	%		97.2	%		3.5	%		2.6	%		3.3	%		2.1	%
Woodmont Village		97				3/1/2002		1,410		96.6	%		96.4	%		2.9	%		1.8	%		3.0	%		1.1	%
Yorkshire Village		40				3/1/2002		1,988		97.3	%		97.7	%		4.3	%		4.6	%		(6.9	%)		15.2	%
Total Long Island		3,586		8.5	%		$	1,633		96.8	%		96.9	%		3.2	%		3.1	%		1.4	%		4.2	%		10.5	%

Page 14

Property Results

December 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 (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
New Jersey
Barrington Gardens		148				3/1/2005	$	1,369		97.4	%		97.1	%		6.5	%		6.2	%		(0.7	%)		10.5	%
Chatham Hill		308				1/30/2004		1,988		94.6	%		95.1	%		5.7	%		4.9	%		5.8	%		4.6	%
East Hill Gardens		33				7/8/1998		1,631		98.2	%		97.7	%		1.5	%		0.4	%		(0.2	%)		0.7	%
Hackensack Gardens		198				3/1/2005		1,218		97.1	%		97.6	%		3.6	%		3.5	%		2.8	%		3.9	%
Jacob Ford Village		270				2/15/2007		1,409		98.3	%		98.5	%		6.2	%		5.0	%		0.3	%		7.1	%
Lakeview		106				7/8/1998		1,477		97.2	%		97.3	%		3.2	%		2.8	%		(2.2	%)		6.2	%
Northwood		134				1/30/2004		1,435		96.8	%		97.2	%		3.5	%		2.9	%		1.4	%		4.0	%
Oak Manor		77				7/8/1998		2,016		96.5	%		97.9	%		6.7	%		5.6	%		9.5	%		3.7	%
Pleasant View		1,142				7/8/1998		1,224		96.5	%		95.8	%		2.9	%		4.0	%		2.9	%		4.7	%
Pleasure Bay		270				7/8/1998		1,144		95.9	%		96.6	%		5.9	%		4.5	%		0.9	%		7.4	%
Royal Gardens		550				5/28/1997		1,323		96.7	%		96.5	%		2.2	%		3.1	%		0.5	%		4.8	%
Wayne Village		275				7/8/1998		1,487		96.3	%		97.1	%		3.1	%		2.7	%		1.6	%		3.2	%
Windsor Realty		67				7/8/1998		1,345		97.7	%		95.0	%		1.6	%		4.0	%		1.0	%		6.1	%
Total New Jersey		3,578		8.5	%		$	1,377		96.5	%		96.5	%		3.9	%		4.0	%		2.1	%		5.1	%		9.2	%

Philadelphia
Glen Manor		174				9/23/1997		833		95.5	%		94.6	%		1.5	%		3.3	%		3.1	%		3.4	%
Golf Club		399				3/15/2000		1,177		95.3	%		94.6	%		3.5	%		4.2	%		(1.2	%)		7.2	%
Hill Brook Place		274				7/28/1999		953		95.7	%		95.5	%		1.1	%		1.9	%		(2.7	%)		6.1	%
Home Properties of Bryn Mawr		316				3/15/2000		1,494		94.4	%		94.6	%		4.1	%		3.4	%		(0.3	%)		5.2	%
Home Properties of Devon		631				3/15/2000		1,291		95.0	%		94.1	%		4.7	%		5.6	%		(3.1	%)		10.4	%
New Orleans Park		442				7/28/1999		912		94.6	%		94.8	%		1.6	%		2.0	%		(1.9	%)		5.9	%
Racquet Club East		466				7/7/1998		1,134		95.9	%		95.0	%		1.9	%		3.0	%		(2.5	%)		6.7	%
Racquet Club South		103				5/27/1999		964		94.4	%		94.8	%		2.0	%		2.3	%		0.8	%		3.8	%
Ridley Brook		244				7/28/1999		988		94.8	%		95.5	%		2.1	%		1.5	%		1.1	%		2.0	%
Sherry Lake		298				7/23/1998		1,328		95.6	%		96.3	%		4.5	%		4.2	%		(0.2	%)		6.5	%
Stone Hill Apartments		205				11/27/2013		900		89.9	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,245		97.1	%		97.1	%		4.9	%		4.7	%		1.5	%		6.6	%
The Landings		384				11/22/1996		1,118		95.1	%		96.2	%		4.6	%		3.2	%		5.0	%		2.1	%
Trexler Park		250				3/15/2000		1,161		94.3	%		94.6	%		3.9	%		3.1	%		0.5	%		4.8	%
Trexler Park West		216				8/15/2008		1,395		96.0	%		95.5	%		1.7	%		2.1	%		1.6	%		2.4	%
Waterview		203				7/14/2011		1,094		95.2	%		93.1	%		3.2	%		5.7	%		3.5	%		7.3	%
William Henry		363				3/15/2000		1,229		94.4	%		94.7	%		3.0	%		(0.1	%)		0.4	%		(0.4	%)
Total Philadelphia		5,114		12.2	%		$	1,161		95.2	%		95.0	%		3.3	%		3.3	%		(0.2	%)		5.5	%		10.8	%

Page 15

Property Results

December 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 (2)	Rent/Mo		Occup			Occup			Rates(3)			Revenue			Expense			NOI			% NOI (1)
Washington, D.C.
1200 East West		247				5/11/2010	$	1,901		96.0	%		96.3	%		0.9	%		1.7	%		(40.4	%)		26.0	%
Arbor Park of Alexandria		851				Redevelopment		1,560		82.3	%		79.9	%		6.7	%		8.3	%		2.4	%		11.8	%
Braddock Lee		255				3/13/1998		1,436		97.4	%		97.5	%		2.9	%		3.0	%		2.8	%		3.2	%
Cider Mill		864				9/27/2002		1,238		96.2	%		96.2	%		3.9	%		3.5	%		(1.1	%)		6.8	%
Cinnamon Run		511				12/28/2005		1,297		93.1	%		93.9	%		1.6	%		0.6	%		(3.5	%)		2.5	%
Courts at Huntington Station		421				6/15/2011		2,011		92.4	%		87.8	%		0.9	%		5.6	%		5.0	%		5.9	%
East Meadow		150				8/1/2000		1,473		96.2	%		96.8	%		4.1	%		2.0	%		1.7	%		2.2	%
Eleven55 Ripley		90				Under Construction		2,051		n/a			n/a			n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,001		95.2	%		95.3	%		3.3	%		3.1	%		3.5	%		2.8	%
Hunters Glen		108				4/19/2011		1,025		92.8	%		95.9	%		5.0	%		2.2	%		12.0	%		(3.3	%)
Mount Vernon Square		1,387				12/27/2006		1,344		93.9	%		94.5	%		4.2	%		4.1	%		5.6	%		3.3	%
Newport Village		937				10/17/2011		1,568		94.0	%		94.6	%		1.0	%		0.6	%		0.6	%		0.6	%
Park Shirlington		294				3/13/1998		1,436		96.1	%		97.2	%		4.1	%		3.0	%		0.8	%		4.4	%
Peppertree Farm		879				12/28/2005		1,269		93.9	%		94.0	%		1.9	%		2.8	%		1.3	%		3.6	%
Seminary Hill		296				7/1/1999		1,421		96.7	%		97.2	%		4.0	%		3.3	%		7.1	%		0.7	%
Seminary Towers		544				7/1/1999		1,479		95.6	%		95.6	%		2.7	%		2.1	%		3.6	%		1.2	%
Somerset Park		108				10/11/2011		1,513		96.9	%		97.1	%		4.3	%		4.6	%		(2.7	%)		9.3	%
Tamarron		132				7/15/1999		1,649		94.0	%		95.5	%		3.9	%		2.1	%		2.5	%		2.0	%
The Apts. at Cobblestone Square		314				6/14/2012		1,317		95.7	%		n/a			n/a			n/a			n/a			n/a
The Apts. at Wellington Trace		240				3/2/2004		1,422		94.9	%		96.8	%		2.1	%		0.5	%		4.1	%		(1.0	%)
The Courts at Dulles		411				11/30/2011		1,555		94.4	%		94.5	%		0.7	%		1.3	%		0.7	%		1.6	%
The Courts at Fair Oaks		364				9/30/2010		1,543		96.2	%		96.2	%		2.8	%		3.5	%		2.2	%		4.1	%
The Manor - MD		435				8/31/2001		1,356		93.7	%		95.8	%		2.6	%		0.6	%		4.5	%		(1.3	%)
The Manor - VA		198				2/19/1999		1,165		95.4	%		96.9	%		5.3	%		2.9	%		(2.1	%)		5.9	%
The Manor East		164				5/11/2012		1,118		92.8	%		n/a			n/a			n/a			n/a			n/a
The Sycamores		185				12/16/2002		1,490		95.1	%		96.7	%		2.9	%		2.1	%		6.6	%		(0.3	%)
Village at Potomac Falls		247				8/5/2010		1,453		95.3	%		96.4	%		4.5	%		3.2	%		0.9	%		4.5	%
West Springfield		244				11/18/2002		1,594		95.6	%		95.8	%		2.5	%		1.2	%		6.0	%		(1.1	%)
Westchester West		345				12/30/2008		1,386		92.8	%		93.9	%		3.7	%		3.1	%		7.2	%		1.0	%
Woodleaf		228				3/19/2004		1,293		96.1	%		95.5	%		0.8	%		0.5	%		(5.9	%)		3.4	%
Woodway at Trinity Centre		504				5/17/2012		1,413		95.8	%		n/a			n/a			n/a			n/a			n/a
Total Washington, D.C.		12,457		29.5	%		$	1,413		94.7	%		95.0	%		2.7	%		2.5	%		1.0	%		3.4	%		32.7	%

Total Properties		42,170		100.0	%		$	1,295		95.0	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		38,440					$	1,294		95.3	%		95.4	%		3.2	%		3.2	%		1.8	%		4.0	%

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

(2)	For development properties the date reflects when all units became available to rent.

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

Page 16

Physical Occupancy Comparison by Region - Core Properties

Sequential Comparison
Fourth Quarter 2013 vs. Third Quarter 2013
Region	% Units			4Q '13			3Q '13			Variance
Baltimore		23.7	%		94.1	%		94.1	%		0.0	%
Boston		8.6	%		95.8	%		95.8	%		0.0	%
Chicago		6.7	%		96.3	%		96.0	%		0.3	%
Florida		2.2	%		95.1	%		94.8	%		0.3	%
Long Island, New Jersey		18.6	%		96.3	%		96.7	%		(0.4	%)
Philadelphia		12.8	%		94.7	%		94.6	%		0.1	%
Washington, D.C.		27.4	%		94.0	%		94.0	%		0.0	%

Total Core		100.0	%		94.9	%		95.0	%		(0.1	%)

Year over Year Comparison
Fourth Quarter 2013 vs. Fourth Quarter 2012
Region	% Units			4Q '13			4Q '12			Variance
Baltimore		23.7	%		94.1	%		94.1	%		0.0	%
Boston		8.6	%		95.8	%		95.8	%		0.0	%
Chicago		6.7	%		96.3	%		95.3	%		1.0	%
Florida		2.2	%		95.1	%		94.6	%		0.5	%
Long Island, New Jersey		18.6	%		96.3	%		97.0	%		(0.7	%)
Philadelphia		12.8	%		94.7	%		95.2	%		(0.5	%)
Washington, D.C.		27.4	%		94.0	%		95.0	%		(1.0	%)

Total Core		100.0	%		94.9	%		95.4	%		(0.5	%)

December vs. Quarter Comparison
Region	% Units			Dec '13			4Q '13			Variance
Baltimore		23.7	%		94.1	%		94.1	%		0.0	%
Boston		8.6	%		95.8	%		95.8	%		0.0	%
Chicago		6.7	%		96.0	%		96.3	%		(0.3	%)
Florida		2.2	%		94.9	%		95.1	%		(0.2	%)
Long Island, New Jersey		18.6	%		96.3	%		96.3	%		0.0	%
Philadelphia		12.8	%		94.8	%		94.7	%		0.1	%
Washington, D.C.		27.4	%		94.0	%		94.0	%		0.0	%

Total Core		100.0	%		94.9	%		94.9	%		0.0	%

Page 17

Net Operating Results - Core Properties

Sequential Results
Fourth Quarter 2013 vs. Third Quarter 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.7	%		1.2	%		2.2	%		1.7	%		2.4	%
Boston		8.6	%		0.3	%		0.2	%		4.5	%		(1.9	%)
Chicago		6.7	%		1.0	%		1.5	%		2.0	%		1.1	%
Florida		2.2	%		1.5	%		1.7	%		5.9	%		(1.8	%)
Long Island, New Jersey		18.6	%		0.3	%		1.4	%		(1.8	%)		3.2	%
Philadelphia		12.8	%		0.6	%		2.1	%		6.1	%		(0.2	%)
Washington, D.C.		27.4	%		0.3	%		0.4	%		3.5	%		(1.2	%)

Total Core		100.0	%		0.6	%		1.3	%		2.3	%		0.7	%


Year over Year Results
Fourth Quarter 2013 vs. Fourth Quarter 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.7	%		2.8	%		3.0	%		3.0	%		3.0	%
Boston		8.6	%		4.5	%		4.0	%		0.7	%		5.9	%
Chicago		6.7	%		4.1	%		4.5	%		8.3	%		1.8	%
Florida		2.2	%		5.7	%		6.8	%		11.4	%		2.8	%
Long Island, New Jersey		18.6	%		3.0	%		3.2	%		0.0	%		5.0	%
Philadelphia		12.8	%		1.8	%		1.8	%		(0.2	%)		3.1	%
Washington, D.C.		27.4	%		1.3	%		1.7	%		1.9	%		1.5	%

Total Core		100.0	%		2.6	%		2.7	%		1.9	%		3.2	%


Year over Year Results
2013 vs. 2012
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		23.7	%		2.8	%		2.9	%		2.0	%		3.3	%
Boston		8.6	%		4.6	%		4.4	%		2.0	%		5.8	%
Chicago		6.7	%		3.7	%		3.9	%		10.3	%		(0.7	%)
Florida		2.2	%		4.9	%		4.9	%		0.3	%		9.3	%
Long Island, New Jersey		18.6	%		3.5	%		3.5	%		1.7	%		4.6	%
Philadelphia		12.8	%		3.5	%		3.3	%		(0.2	%)		5.5	%
Washington, D.C.		27.4	%		2.4	%		2.5	%		1.0	%		3.4	%

Total Core		100.0	%		3.1	%		3.2	%		1.8	%		4.0	%

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

Page 18

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						3Q '13						4Q '13						YTD '13
Region	New			Renewal			New			Renewal			New			Renewal			New			Renewal			New			Renewal
Baltimore		1.6	%		3.7	%		2.1	%		4.0	%		1.1	%		4.2	%		(1.1	%)		3.8	%		1.0	%		3.9	%

Boston		1.9	%		3.4	%		7.3	%		4.2	%		7.0	%		4.7	%		1.4	%		3.4	%		5.0	%		4.1	%

Chicago		0.5	%		3.0	%		2.3	%		4.0	%		2.4	%		3.9	%		0.4	%		4.5	%		1.8	%		3.9	%

Florida		4.6	%		4.3	%		7.9	%		3.6	%		5.7	%		4.0	%		5.1	%		4.0	%		6.0	%		3.9	%

Long Island, New Jersey		3.8	%		3.1	%		3.5	%		3.3	%		4.1	%		3.4	%		1.8	%		3.6	%		3.4	%		3.4	%

Philadelphia		(0.4	%)		2.9	%		2.4	%		3.7	%		0.0	%		4.3	%		(2.2	%)		2.9	%		0.1	%		3.6	%

Washington, D.C.		(0.3	%)		4.1	%		0.7	%		3.9	%		0.2	%		3.9	%		(3.0	%)		3.3	%		(0.6	%)		3.8	%

Total Core		1.3	%		3.6	%		2.7	%		3.8	%		2.0	%		4.0	%		(0.7	%)		3.5	%		1.5	%		3.7	%

Page 19

Resident Statistics

Top Six Reasons for Moveouts
	4Q '13			3Q '13			2Q '13			1Q '13			4Q '12			3Q '12			2Q '12			1Q '12			Year '13			Year '12			Year '11			Year '10
Transfer within HME		16.1	%		12.1	%		11.9	%		14.1	%		13.3	%		12.5	%		11.5	%		15.0	%		13.4	%		13.1	%		11.6	%		12.3	%

Eviction, skip		13.4	%		10.9	%		13.3	%		14.9	%		14.3	%		12.7	%		12.8	%		16.9	%		12.9	%		14.2	%		16.4	%		15.6	%

Home purchase		13.3	%		12.7	%		12.5	%		11.2	%		13.0	%		11.2	%		11.2	%		9.6	%		12.5	%		11.3	%		10.4	%		11.0	%

Employment related		13.1	%		12.9	%		13.6	%		14.7	%		14.1	%		12.5	%		13.4	%		12.6	%		13.5	%		13.2	%		13.4	%		13.9	%

Location, apartment size		12.2	%		13.9	%		13.4	%		12.3	%		12.1	%		13.0	%		13.5	%		11.7	%		13.1	%		12.6	%		13.1	%		12.1	%

Rent level		10.4	%		11.5	%		10.3	%		9.9	%		10.5	%		11.0	%		10.8	%		11.0	%		10.6	%		10.8	%		10.5	%		10.0	%

Traffic - Core Properties													Turnover - Core Properties
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	4Q '13			YTD '13			4Q '13			YTD '13
	vs.			vs.			vs.			vs.
Region	4Q '12			YTD '12			4Q '12			YTD '12			4Q '13			4Q '12			YTD '13			YTD '12
Baltimore		(6.7	%)		(2.1	%)		(10.5	%)		0.5	%		9.3	%		9.0	%		41.5	%		41.1	%
Boston		(18.1	%)		4.0	%		(8.5	%)		8.5	%		9.1	%		9.9	%		42.9	%		39.5	%
Chicago		5.6	%		3.3	%		(6.3	%)		4.2	%		10.5	%		10.0	%		49.9	%		49.3	%
Florida		(8.4	%)		(19.2	%)		25.6	%		3.9	%		11.4	%		11.6	%		43.4	%		44.6	%
Long Island		1.2	%		1.2	%		(8.1	%)		(1.2	%)		7.9	%		7.0	%		34.7	%		32.8	%
New Jersey		37.8	%		6.2	%		18.2	%		4.7	%		8.2	%		7.8	%		36.0	%		35.0	%
Philadelphia		3.1	%		3.1	%		(3.4	%)		4.6	%		9.2	%		8.9	%		46.6	%		43.6	%
Washington, D.C.		(3.9	%)		(6.8	%)		3.6	%		1.1	%		8.2	%		8.0	%		36.9	%		35.5	%

Total Core		(1.3	%)		(1.2	%)		(2.6	%)		2.5	%		8.8	%		8.6	%		40.5	%		39.0	%


Bad Debt as % of Rent and Utility Recovery
	4Q '13			4Q '12			YTD '13			YTD '12
Total Core		0.92	%		1.03	%		0.97	%		0.97	%

Page 20

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

Core Properties
							Qtr			%									YTD			%
	4Q '13			4Q '12			Variance			Variance			YTD '13			YTD '12			Variance			Variance
Rent	$	141,898		$	138,352		$	3,546			2.6	%	$	563,457		$	546,292		$	17,165			3.1	%
Utility recovery		6,018			6,087			(69	)		(1.1	%)		22,968			22,379			589			2.6	%
Rent including recoveries		147,916			144,439			3,477			2.4	%		586,425			568,671			17,754			3.1	%
Other income		6,633			6,028			605			10.0	%		27,178			26,013			1,165			4.5	%
Total income		154,549			150,467			4,082			2.7	%		613,603			594,684			18,919			3.2	%
Operating & maintenance		(55,343	)		(54,319	)		(1,024	)		(1.9	%)		(221,537	)		(217,682	)		(3,855	)		(1.8	%)
Core Properties NOI	$	99,206		$	96,148		$	3,058			3.2	%	$	392,066		$	377,002		$	15,064			4.0	%

Physical Occupancy		94.9	%		95.4	%		(0.5	%)					95.3	%		95.4	%		(0.1	%)

Weighted Avg Rent per Unit	$	1,309		$	1,272		$	37			2.9	%	$	1,294		$	1,254		$	40			3.2	%

Acquired Properties (1)							Redevelopment Property (2)
	4Q '13			YTD '13									4Q '13			YTD '13
Rent	$	8,457		$	32,515		Rent						$	3,423		$	13,007
Utility recovery		316			1,070		Utility recovery							138			512
Rent including recoveries		8,773			33,585		Rent including recoveries							3,561			13,519
Other income		278			1,230		Other income							105			454
Total income		9,051			34,815		Total income							3,666			13,973
Operating & maintenance		(3,066	)		(12,053	)	Operating & maintenance							(1,206	)		(4,888	)
Acquired Properties NOI	$	5,985		$	22,762		Redevelopment Property NOI						$	2,460		$	9,085

Physical Occupancy		94.6	%		95.0	%	Physical Occupancy							86.1	%		82.3	%

Weighted Avg Rent per Unit	$	1,223		$	1,215		Weighted Avg Rent per Unit						$	1,575		$	1,560

(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 21

Operating Expense Detail - Core Properties
($ in thousands)

					Qtr			%							YTD			%
	4Q '13		4Q '12		Variance			Variance			YTD '13		YTD '12		Variance			Variance
Electricity	$	1,928	$	1,805	$	123			6.8	%	$	8,042	$	8,031	$	11			0.1	%
Gas		3,958		4,410		(452	)		(10.2	%)		13,742		13,695		47			0.3	%
Water & sewer		4,797		4,802		(5	)		(0.1	%)		18,407		18,264		143			0.8	%
Repairs & maintenance		8,506		7,869		637			8.1	%		31,583		31,824		(241	)		(0.8	%)
Personnel expense		12,154		12,267		(113	)		(0.9	%)		51,158		49,328		1,830			3.7	%
Advertising		1,252		1,185		67			5.7	%		4,780		4,823		(43	)		(0.9	%)
Legal & professional		794		626		168			26.8	%		1,941		1,945		(4	)		(0.2	%)
Office & telephone		1,571		1,554		17			1.1	%		6,292		6,469		(177	)		(2.7	%)
Property insurance		1,546		1,508		38			2.5	%		6,116		6,939		(823	)		(11.9	%)
Real estate taxes		13,798		13,542		256			1.9	%		58,959		56,372		2,587			4.6	%
Snow		384		137		247			180.3	%		1,306		425		881			207.3	%
Trash		856		828		28			3.4	%		3,343		3,386		(43	)		(1.3	%)
Property management G&A		3,799		3,786		13			0.3	%		15,868		16,181		(313	)		(1.9	%)
Total Core	$	55,343	$	54,319	$	1,024			1.9	%	$	221,537	$	217,682	$	3,855			1.8	%

Page 22

Discontinued Operations (1)
($ in thousands)

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

	4Q '13			4Q '12			YTD '13		YTD '12
Revenues:
Rental income	$	233		$	5,617		$	7,095	$	30,324
Property other income		29			755			768		3,230
Total revenues		262			6,372			7,863		33,554
Expenses:
Operating and maintenance		96			2,242			2,483		11,951
Interest (2)(3)		413			2,777			2,625		6,425
Depreciation and amortization		-			1,441			1,838		7,951
Total expenses		509			6,460			6,946		26,327
Income (loss) from discontinued operations		(247	)		(88	)		917		7,227
Gain on disposition of property		36,201			60,865			81,205		80,532
Discontinued operations	$	35,954		$	60,777		$	82,122	$	87,759

(1)	Properties included in discontinued operations are listed in Summary Of Recent Sales.

(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 twelve months ended December 31, 2013.

(3	Includes loan prepayment penalty of $2,157 for the three and twelve months ended December 31, 2012.

Page 23

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
Stone Hill	Philadelphia	PA	11/27/2013		205		6.8	%	$	15.5	$	75,610
Middlesex Crossing	Boston	MA	12/18/2013		252		6.4	%		40.3		159,722
			Total 2013		457		6.5	%	$	55.8	$	121,991
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			2,475		6.0	%	$	354.0	$	143,010

(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
Virginia Village	Washington, D.C.	VA	10/15/2013		344		5.9	%		68.0		197,674
			Total 2013		1,013		5.8	%	$	192.1	$	189,635
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			2,609		6.1	%	$	351.7	$	134,802

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

Page 24

Breakdown of Units

				Net								Net
				Acquired/								Acquired/
		As of		Developed			As of		12/31/2012			Developed			As of		12/31/2013
Region	State	12/31/2011		in 2012			12/31/2012		% of Units			in 2013			12/31/2013		% of Units
Baltimore	MD		9,984		493			10,477		24.6	%		-			10,477		24.8	%
Boston	MA/ME		3,304		(1	)		3,303		7.7	%		253			3,556		8.4	%
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	%		47			5,114		12.2	%
Washington, D.C.	MD/VA		12,230		931			13,161		30.9	%		(704	)		12,457		29.5	%
Total			41,951		684			42,635		100.0	%		(465	)		42,170		100.0	%

Page 25

Debt Summary Schedule
($ in thousands)

		Interest			12/31/13
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured

The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.52	%		22,401	04/01/14
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.27	%		32,128	07/01/14
The Greens at Columbia	M&T Realty-Fannie Mae		3.93	%		8,970	08/01/14
Westchester West - 1st	Berkeley Point Capital - Freddie		6.15	%		25,930	03/01/15
Westchester West - 2nd	Berkeley Point Capital - Freddie		6.64	%		7,218	03/01/15
Stratford Greens	Capital One Bank		5.75	%		29,143	07/01/15
Sayville Commons	M&T Realty - Freddie Mac		5.00	%		37,118	08/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		31,842	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		21,855	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		18,923	09/01/15
Cypress Place Apartments	Prudential - Fannie Mae		6.56	%		9,776	11/01/15
Golf Club Apartments	Prudential - Fannie Mae		6.38	%		31,483	11/01/15
Northwood Apartments	M&T Realty - Freddie Mac		5.50	%		10,049	12/01/15
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.25	%		47,318	01/01/16
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.55	%		4,918	01/01/16
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.25	%		72,831	01/01/16
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.55	%		1,788	01/01/16
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.57	%		47,844	02/01/16
Devonshire - 1st	Wachovia - Fannie Mae		5.60	%		35,050	04/01/16
Devonshire - 2nd	Wachovia - Fannie Mae		6.24	%		8,007	04/01/16
Mid-Island	Prudential - Fannie Mae		5.48	%		18,521	04/01/16
Owings Run 1 & 2	Prudential - Fannie Mae		5.59	%		40,122	04/01/16
The Manor East	KeyBank - Freddie Mac		3.25	%		6,877	04/01/16
Country Village	Centerline (CIII) - Fannie Mae		5.52	%		17,590	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	%		42,462	01/01/18
William Henry Apartments	PNC - Fannie Mae		4.85	%		27,383	01/01/18
Seminary Towers Apartments	Prudential - Fannie Mae		5.49	%		53,515	07/01/18
The Manor (MD)	Prudential - Fannie Mae		4.23	%		44,245	11/01/18
Bonnie Ridge - 1st	Prudential Life		6.60	%		7,663	12/15/18
Bonnie Ridge - 2nd	Prudential Life		6.16	%		16,554	12/15/18
Bonnie Ridge - 3rd	Prudential Life		6.07	%		23,640	12/15/18
Annapolis Roads	Amerisphere - Fannie Mae		5.12	%		22,982	01/01/19

Page 26

Debt Summary Schedule
($ in thousands)

		Interest				12/31/13
Property	Lender	Rate %				Balance		Maturity Date

Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.75	%			17,447	01/01/19
The Sycamores	M&T Realty - Freddie Mac		5.71	%			20,335	01/01/19
Top Field Apartments	M&T Realty - Fannie Mae		4.84	%			15,888	01/01/19
Westwood Village	M&T Realty - Freddie Mac		5.68	%			44,548	01/01/19
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.47	%			11,771	07/01/19
Glen Manor	Prudential - Fannie Mae		5.83	%			7,599	08/01/19
Ridley Brook	Prudential - Fannie Mae		5.83	%			12,616	08/01/19
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.50	%			47,150	08/01/19
Southern Meadows	Red Mortgage - Fannie Mae		5.36	%			39,018	10/01/19
Elmwood Terrace	M&T Realty - Fannie Mae		5.56	%			25,647	11/01/19
Lakeview	Greystone - Fannie Mae		5.31	%			8,698	12/01/19
The Landings	Prudential - Fannie Mae		5.60	%			25,055	01/01/20
East Meadow Apartments	M&T Realty - Freddie Mac		5.40	%			14,101	05/01/20
Selford Townhomes	M&T Realty - Freddie Mac		5.40	%			8,525	05/01/20
Stone Ends Apts.	M&T Realty - Freddie Mac		5.40	%			24,012	05/01/20
Tamarron Apartments	M&T Realty - Freddie Mac		5.40	%			14,109	05/01/20
The Manor (VA)	M&T Realty - Freddie Mac		5.40	%			13,242	05/01/20
Woodmont Village	M&T Realty - Freddie Mac		5.40	%			9,555	05/01/20
Trexler Park	Greystone - Fannie Mae		4.34	%			36,731	08/01/20
Arbor Park of Alexandria	Prudential - Fannie Mae		4.35	%			92,638	11/01/20
New Orleans Park	M&T Realty - Fannie Mae		4.58	%			22,545	11/01/20
Racquet Club East	PNC - Fannie Mae		4.74	%	��		36,116	12/01/20
Heritage Woods Apts	Greystone - Fannie Mae		5.39	%			13,922	01/01/21
The Meadows at Marlborough	Prudential - Fannie Mae		5.50	%			20,344	01/01/21
Home Properties of Devon	M&T Realty - Fannie Mae		4.85	%			58,303	08/01/21
Pleasant View Gardens	Prudential - Fannie Mae		4.51	%			91,733	11/01/21
Dunfield Townhomes	Midland Mortgage - HUD		5.25	%			10,519	09/01/28
Highland House	Arbor Comml - Fannie Mae		6.32	%			5,343	01/01/29

Wtd Avg - Fixed Secured			5.21	%		$	1,731,177

Page 27

Debt Summary Schedule
($ in thousands)

		Interest			12/31/13
Property	Lender	Rate %			Balance		Maturity Date

Variable Rate Secured
Cider Mill Apts	M&T Realty - Freddie Mac		3.07	%		58,709	01/01/17
Sherry Lake	M&T Realty - Freddie Mac		2.91	%		24,331	04/01/17

Wtd Avg - Variable Secured			3.02	%	$	83,040

Wtd Avg - Total Secured Debt			5.11	%	$	1,814,217

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&T Bank et. al.		1.69	%		250,000	08/18/18

Variable Rate Unsecured
Revolving Line of Credit	M&T Bank et. al.		1.19	%		193,000	08/18/17

Wtd Avg - Total Unsecured Debt			2.43	%	$	643,000

Total Combined Debt			4.41	%	$	2,457,217

Page 28

Debt Summary Schedule
($ in thousands)

% Of Portfolio - Fixed	88.8%
% Of Portfolio - Variable	11.2%
		Interest			Years To
		Rate %			Maturity
Wtd Avg - Total Fixed Rate Debt			4.75	%	4.59
Wtd Avg - Total Variable Rate Debt			1.74	%	3.46
Wtd Avg - Combined Debt			4.41	%	4.46

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
2014		5.17	%	$	63,498		-		$	-	$	63,498		2.80	%
2015		5.17	%		223,336		-			-		223,336		9.86	%
2016		5.40	%		300,866		-			-		300,866		13.29	%
2017		5.78	%		157,524		3.02	%		83,040		240,564		10.62	%
2018		3.55	%		555,462		-			-		555,462		24.53	%
2019		5.14	%		323,699		-			-		323,699		14.30	%
2020		4.82	%		296,628		-			-		296,628		13.10	%
2021		4.84	%		244,302		-			-		244,302		10.79	%
2022		-			-		-			-		-		0.00	%
2023		-			-		-			-		-		0.00	%
2024 - 2029		5.61	%		15,861		-			-		15,861		0.70	%
TOTAL		4.75	%	$	2,181,177		3.02	%	$	83,040	$	2,264,217		100.00	%

Page 29

Debt Summary Schedule

Unencumbered Properties

Property

# Units

Region

State

Property

# Units

Region

State

Canterbury Apartments

618

Baltimore

Lake Grove Apartments

368

Long Island

Gateway Village

132

Baltimore

Yorkshire Village

Long Island

Howard Crossing

1,350

Baltimore

Barrington Gardens

148

New Jersey

Middlebrooke Apartments

208

Baltimore

East Hill Gardens

New Jersey

Morningside Heights

1,050

Baltimore

Hackensack Gardens

198

New Jersey

Saddle Brooke Apartments *

468

Baltimore

Jacob Ford Village

270

New Jersey

The Apts at Cambridge Court

544

Baltimore

Oak Manor

New Jersey

The Coves at Chesapeake

469

Baltimore

Pleasure Bay

270

New Jersey

Westbrooke Apartments

110

Baltimore

Wayne Village

275

New Jersey

Gardencrest

696

Boston

Windsor Realty

New Jersey

Liberty Place

107

Boston

Hill Brook Apartments

274

Philadelphia

Middlesex Crossing *

252

Boston

Home Properties of Bryn Mawr

316

Philadelphia

The Commons at Haynes Farm

302

Boston

Racquet Club South

103

Philadelphia

The Heights at Marlborough

348

Boston

Stone Hill Apartments *

204

Philadelphia

The Townhomes of Beverly

204

Boston

Waterview

203

Philadelphia

The Village at Marshfield

276

Boston

1200 East West Highway

247

Washington, D.C.

Westwoods

Boston

Hunter's Glen

108

Washington, D.C.

Liberty Commons

120

Boston

Seminary Hill

296

Washington, D.C.

Redbank Village

500

Boston

Courts at Huntington Station

421

Washington, D.C.

Blackhawk Apartments

371

Chicago

Woodleaf Apartments

228

Washington, D.C.

Courtyards Village

224

Chicago

Braddock Lee

255

Washington, D.C.

Lakeview Townhomes

120

Chicago

Mt. Vernon Square

1,387

Washington, D.C.

The Colony

783

Chicago

Newport Village

937

Washington, D.C.

The Gates of Deer Grove

204

Chicago

Park Shirlington

294

Washington, D.C.

The New Colonies

672

Chicago

Somerset Park

108

Washington, D.C.

Bayview & Colonial

160

Long Island

The Apts at Cobblestone Square

314

Washington, D.C.

Cambridge Village

Long Island

The Courts at Dulles

411

Washington, D.C.

Crescent Club

257

Long Island

Village at Potomac Falls

247

Washington, D.C.

Heritage Square

Long Island

West Springfield Village

244

Washington, D.C.

Holiday Square

144

Long Island

Woodway at Trinity Centre

504

Washington, D.C.

Total Number of Units:

19,733

Total Number of Properties:

*	Property added to unencumbered pool during Q4 '13.

Page 30

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.

Page 31

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 December 31, 2013 approximately $212 per unit was spent on recurring capital expenditures. For the twelve months ended December 31, 2013 approximately $848 per unit was spent on recurring capital expenditures. The table below summarizes the actual total capital improvements incurred by major categories and an estimate of the breakdown of total capital improvements by major categories between recurring, and non-recurring revenue generating capital improvements for the three and twelve months ended December 31, 2013 as follows:

For the three months ended December 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	$	-	$	-	$	125	$	3	$	125	$	3
Major building improvements		1,319		33		5,458		135		6,777		168
Roof replacements		375		9		615		15		990		24
Site improvements		609		15		3,359		83		3,968		98
Apartment upgrades		1,314		33		10,484		258		11,798		291
Appliances		1,780		44		-		-		1,780		44
Carpeting/flooring		2,211		54		1,729		43		3,940		97
HVAC/mechanicals		791		19		4,787		118		5,578		137
Miscellaneous		203		5		205		5		408		10
Total	$	8,602	$	212	$	26,762	$	660	$	35,364	$	872

(a)	Calculated using the weighted average number of units owned, including 38,440 core units, 2012 acquisition units of 2,018, and 2013 acquisition units of 119 for the three months ended December 31, 2013.

For the twelve months ended December 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	$	-	$	-	$	404	$	10	$	404	$	10
Major building improvements		5,263		130		19,440		480		24,703		610
Roof replacements		1,498		37		2,596		64		4,094		101
Site improvements		2,429		60		11,640		287		14,069		347
Apartment upgrades		5,514		136		37,165		918		42,679		1,054
Appliances		6,835		169		37		1		6,872		170
Carpeting/flooring		8,826		218		5,482		135		14,308		353
HVAC/mechanicals		3,158		78		16,393		405		19,551		483
Miscellaneous		810		20		2,517		62		3,327		82
Total	$	34,333	$	848	$	95,674	$	2,362	$	130,007	$	3,210

(a)	Calculated using the weighted average number of units owned, including 38,440 core units, 2012 acquisition units of 2,018, and 2013 acquisition units of 30 for the twelve months ended December 31, 2013.

Page 32

Capital Expenditure Summary (continued)

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

For the three months ended December 31, 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	$	8,163	$	212	$	24,139	$	628	$	32,302	$	840
2013 Acquisition Communities		11		92		-		-		11		92
2012 Acquisition Communities		428		212		2,623		1,300		3,051		1,512
Subtotal		8,602		212		26,762		660		35,364		872
2013 Disposed Communities		5		87		0		2		5		89
2012 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (b)		-		-		-		-		323		-
Total	$	8,607	$	212	$	26,762	$	659	$	35,692	$	870

(a)	Calculated using the weighted average number of units owned, including 38,440 core units, 2012 acquisition units of 2,018, 2013 acquisition units of 119, and 2013 disposed units of 56 for the three months ended December 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.

For the twelve months ended December 31, 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	$	32,611	$	848	$	88,533	$	2,303	$	121,144	$	3,151
2013 Acquisition Communities		11		367		-		-		11		367
2012 Acquisition Communities		1,711		848		7,141		3,539		8,852		4,387
Sub-total		34,333		848		95,674		2,362		130,007		3,210
2013 Disposed Communities		369		848		13		29		382		877
2012 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (b)		-		-		-		-		2,153		-
Total	$	34,702	$	848	$	95,687	$	2,338	$	132,542	$	3,186

(a)	Calculated using the weighted average number of units owned, including 38,440 core units, 2012 acquisition units of 2,018, 2013 acquisition units of 30, and 2013 disposed units of 435 for the twelve months ended December 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
	12/31/2013			12/31/2012		Change
Net Operating Income	$	99,206		$	96,148		3.2	%
Less: Non-recurring Capex @ 6%		(1,448	)		-		-
Adjusted Net Operating Income	$	97,758		$	96,148		1.7	%

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.

Page 33

Development Pipeline as of December 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

97,171

4Q 11

4Q 13

1H 14

57.0

14.8

6.6

Silver Spring, MD

High-Rise

Courts at

Spring Mill Station

Donut/Podium

385

89,000

231

42,504

2Q 12

2Q 14

2H 14

0.0

n/a

Conshohocken, PA

Pre-construction:

Concorde Circle

Garden

��

300

tbd

14,642

tbd

n/a

Linthicum, MD

Westpark Tysons

(part of Arbor Row

Mid-Rise and

694

232,000

334

33,659

2014

tbd

n/a

final development plan)

High-Rise

Tysons Corner, VA

Total

187,976

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

(2)	Represents the percentage of units that have been completed and are available to rent as of February 5, 2014.

(3)	Represents the percentage of units that have been leased as of February 5, 2014.

(4)	Represents the percentage of units occupied as of February 5, 2014.

Page 34

2014 Earnings Guidance
	First			Second		Third		Fourth
	Quarter			Quarter		Quarter		Quarter		Year
2014 compared to 2013

FFO per share - 2014 guidance	$	1.02 - $1.06		Information for subsequent quarters will be provided in future earnings press releases						$	4.44 to $4.60

Midpoint of guidance	$	1.04								$	4.52

FFO per share - 2013 actual	$	1.053		$	1.113	$	1.086	$	1.111	$	4.368

Projected improvement		-1.2	%								3.5	%


2014 compared to 2013 based on "Operating FFO" - OFFO

OFFO per share - 2014 guidance	$	1.02 - $1.06		Information for subsequent quarters will be provided in future earnings press releases						$	4.45 to $4.61

Midpoint of guidance	$	1.04								$	4.53

OFFO per share - 2013 actual	$	1.053		$	1.113	$	1.087	$	1.115	$	4.373

Actual/projected improvement		-1.2	%								3.6	%

The difference between FFO and OFFO is expensed acquisition costs.

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2014 Earnings Guidance
	First			Second	Third	Fourth
	Quarter			Quarter	Quarter	Quarter	Year

Core Property Assumptions:

Total revenue growth		2.5	%	Information for subsequent quarters will be provided in future earnings press releases			2.6% to 3.6%

Expense growth		3.5	%				3.0% to 4.0%

NOI growth		1.7	%				2.5% to 3.5%

In 2013, weighted average rent was up 3.2% and economic occupancy was down 0.1%, producing 3.1% base rental growth. Other income slightly increased, resulting in 3.2% growth in total revenue.

In 2014, we expect weighted average rent will be up 3.0%, with economic occupancy up 0.2%, producing 3.2% base rental growth, 10 basis points greater than 2013. Other income growth rate is expected to be less than 3.0%, resulting in 3.1% growth in total revenue at the midpoint of guidance.

After four consecutive years of negative expense growth (2009 - 2012) , in 2013 we experienced only a slight increase of 1.8%. We expect pressure on certain line items in 2014 resulting in Operating and Maintenance expenses projected to go up 3.0% to 4.0%. Some of the line items where we expect above average increases include: personnel costs (specifically from health care and the effects of new regulations) up 5.2%; real estate taxes up 5.6%; and property insurance up 7%.

Core Occupancy Assumptions:

2014 physical occupancy		94.9	%	Information for subsequent quarters will be provided in future earnings press releases				95.3	%

2013 physical occupancy		95.5	%					95.2	%

Change in occupancy		-0.6	%					0.1	%

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2014 Earnings Guidance

Annual growth by region:	2013				2013		2014 Same Store Growth Projection
	%			Total			Total
	of Units			Revenue			Revenue			Expenses			NOI
Boston		8.6	%		4.4	%		3.3	%		2.3	%		3.9	%
Florida		2.2	%		4.9	%		4.4	%		5.0	%		3.8	%
Philadelphia		12.8	%		3.3	%		3.4	%		2.9	%		3.8	%
Washington, DC		27.4	%		2.5	%		3.1	%		2.9	%		3.2	%
Baltimore		23.7	%		2.9	%		3.2	%		4.1	%		2.7	%
Chicago		6.7	%		3.9	%		2.6	%		2.7	%		2.5	%
New Jersey/Long Island		18.6	%		3.5	%		2.9	%		4.8	%		1.7	%
Total		100.0	%		3.2	%		3.1	%		3.5	%		3.0	%

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

				% of Total						% Increase
				Expenses						Over 2013
Electricity					3.4	%					1.1	%
Natural gas heating costs					5.6	%					-3.4	%
Water and sewer					8.1	%					3.4	%
Repairs and maintenance					14.2	%					4.0	%
Total personnel costs					23.6	%					5.2	%
Real estate taxes					27.4	%					5.6	%
Property insurance					2.9	%					7.0	%
Advertising					2.2	%					3.4	%
Legal & Professional					0.5	%					-38.2	%
Office & telephone					2.8	%					4.0	%
Snow removal					0.5	%					-0.4	%
Trash					1.6	%					3.0	%
Property management G & A					7.2	%					0.7	%
					100.0	%					3.5	%

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2014 Earnings Guidance

General & Administrative costs are expected to decrease 2.4% at the midpoint and range between $27.4 million and $28.2 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 as significant amounts of equity grants are immediately expensed, based on retirement eligilibility status, versus written off over the vesting period. We expect the first quarter to range from $9.3 million to $9.5 million, and the second quarter to range from $7.0 million to $7.2 million. The third and fourth quarters settle back down to a range of $5.6 million to $5.8 million and $5.5 million to $5.7 million, respectively.

Interest Expense is projected to be $101.9 million to $102.7 million for the year, without significant differences between the quarters.

First

Second

Third

Fourth

Quarter

Year

Development NOI 2014 projected run rate

25K

425K

975K

1,475K

2,900K

(includes both Eleven55 Ripley and Courts at Spring Mill)

Acquisition range of $150 million to $250 million.

100M

50M

200M

Disposition range of $160 million to $260 million

110M

50M

210M

Anticipated expense from acquisition costs for 2014 of $0.9 million versus actual of $0.3 million in 2013.

Development spend of $60 million.

Capital expenditures:

Recurring

$35 million

Upgrading and repositioning

$100 million

Page 38

Home Properties Inactive 8-KEarnings Release and Supplemental Information