Home Properties 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Jul. 31, 2015
Document and Entity Information
Entity Registrant Name	HOME PROPERTIES INC
Entity Central Index Key	923,118
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		58,046,282
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Real estate:
Land	$ 803,156	$ 815,565
Land held for sale	36,804	13,114
Construction in progress	57,620	118,595
Buildings, improvements and equipment	4,924,425	4,817,453
Real estate, gross	5,822,005	5,764,727
Less: accumulated depreciation	(1,429,699)	(1,371,227)
Real estate, net	4,392,306	4,393,500
Cash and cash equivalents	7,807	11,131
Cash in escrows	28,245	24,118
Accounts receivable, net	19,144	19,556
Prepaid expenses	11,985	23,484
Deferred charges, net	8,029	9,250
Other assets	9,291	7,496
Total assets	4,476,807	4,488,535
LIABILITIES AND EQUITY
Mortgage notes payable	1,561,337	1,637,175
Unsecured notes payable	550,000	550,000
Unsecured line of credit	318,500	269,000
Accounts payable	26,215	25,835
Accrued interest payable	8,564	7,732
Accrued expenses and other liabilities	42,501	38,732
Security deposits	19,766	18,631
Total liabilities	$ 2,526,883	$ 2,547,105
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.01 par value; 160,000,000 shares authorized; 57,995,346 and 57,703,957 shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively	$ 580	$ 577
Excess stock, $0.01 par value; 10,000,000 shares authorized; no shares issued or outstanding
Additional paid-in capital	$ 2,053,468	$ 2,041,394
Distributions in excess of accumulated earnings	(390,695)	(387,004)
Accumulated other comprehensive income	1,035	(1,749)
Total common stockholders' equity	1,664,388	1,653,218
Noncontrolling interest	285,536	288,212
Total equity	1,949,924	1,941,430
Total liabilities and equity	$ 4,476,807	$ 4,488,535

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	160,000,000	160,000,000
Common stock, shares issued	57,995,346	57,703,957
Common stock, shares outstanding	57,995,346	57,703,957
Excess stock, par value (in dollars per share)	$ 0.01	$ 0.01
Excess stock, shares authorized	10,000,000	10,000,000
Excess stock, shares issued	0	0
Excess stock, shares outstanding	0	0

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Rental income	$ 163,112	$ 152,431	$ 323,992	$ 302,266
Property other income	13,542	12,973	28,989	28,294
Other income	230	179	547	321
Total revenues	176,884	165,583	353,528	330,881
Expenses:
Operating and maintenance	61,006	59,468	128,313	125,039
General and administrative	7,399	7,126	15,942	16,384
Interest	25,130	24,717	50,614	49,570
Depreciation and amortization	48,314	44,569	96,179	88,346
Other expenses	3,385	274	3,762	282
Impairment and other charges	(500)	3,842	(319)	3,842
Total expenses	144,734	139,996	294,491	283,463
Income from continuing operations, before gain on disposition of real estate	32,150	25,587	59,037	47,418
Gain on disposition of land			70
Gain on disposition of property			40,346
Income from continuing operations	32,150	25,587	99,453	47,418
Discontinued operations:
Income from discontinued operations		876		1,710
Gain on disposition of property				31,306
Discontinued operations		876		33,016
Net income	32,150	26,463	99,453	80,434
Net income attributable to noncontrolling interest	(4,719)	(3,994)	(14,664)	(12,174)
Net income attributable to common stockholders	$ 27,431	$ 22,469	$ 84,789	$ 68,260
Basic earnings per share:
Income from continuing operations (in dollars per share)	$ 0.47	$ 0.38	$ 1.46	$ 0.70
Discontinued operations (in dollars per share)		0.01		0.49
Net income attributable to common stockholders (in dollars per share)	0.47	0.39	1.46	1.19
Diluted earnings per share:
Income from continuing operations (in dollars per share)	0.47	0.38	1.45	0.70
Discontinued operations (in dollars per share)		0.01		0.48
Net income attributable to common stockholders (in dollars per share)	$ 0.47	$ 0.39	$ 1.45	$ 1.18
Weighted average number of shares outstanding:
Basic (in shares)	58,048,732	57,247,851	57,960,502	57,162,306
Diluted (in shares)	58,684,728	57,795,142	58,561,929	57,660,163

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 32,150	$ 26,463	$ 99,453	$ 80,434
Other comprehensive income (loss):
Unrealized gain (loss) on interest rate swap agreements	9,459	(2,429)	3,256	(3,324)
Other comprehensive income (loss)	9,459	(2,429)	3,256	(3,324)
Comprehensive income	41,609	24,034	102,709	77,110
Net income attributable to noncontrolling interest	(4,719)	(3,994)	(14,664)	(12,174)
Other comprehensive (income) loss attributable to noncontrolling interest	(1,389)	367	(472)	503
Comprehensive income attributable to common stockholders	$ 35,501	$ 20,407	$ 87,573	$ 65,439

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Distributions in Excess of Accumulated Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interest	Total
Balance at Dec. 31, 2013	$ 570	$ 2,007,300	$ (380,168)	$ 1,551	$ 293,060	$ 1,922,313
Balance (in shares) at Dec. 31, 2013	56,961,646
Increase (Decrease) in Stockholders' Equity
Net income			68,260		12,174	80,434
Unrealized gain (loss) on interest rate swap agreements				(2,821)	(503)	(3,324)
Issuance of common stock, net	$ 3	11,707				11,710
Issuance of common stock, net (in shares)	329,518
Stock-based compensation		7,221				7,221
Stock-based compensation (in shares)	5,318
Repurchase of common stock	$ (1)	(3,177)				(3,178)
Repurchase of common stock (in shares)	(52,023)
Conversion of UPREIT Units for common stock	$ 1	2,456			(2,457)	0
Conversion of UPREIT Units for common stock (in shares)	86,166
Adjustment of noncontrolling interest		(850)			850	0
Dividends and distributions declared			(83,692)		(14,912)	(98,604)
Balance at Jun. 30, 2014	$ 573	2,024,657	(395,600)	(1,270)	288,212	1,916,572
Balance (in shares) at Jun. 30, 2014	57,330,625
Balance at Dec. 31, 2014	$ 577	2,041,394	(387,004)	(1,749)	288,212	$ 1,941,430
Balance (in shares) at Dec. 31, 2014	57,703,957					57,703,957
Increase (Decrease) in Stockholders' Equity
Net income			84,789		14,664	$ 99,453
Unrealized gain (loss) on interest rate swap agreements				2,784	472	3,256
Issuance of common stock, net	$ 2	8,286				8,288
Issuance of common stock, net (in shares)	236,195
Stock-based compensation		4,985				4,985
Stock-based compensation (in shares)	5,317
Repurchase of common stock		(3,742)				(3,742)
Repurchase of common stock (in shares)	(52,354)
Conversion of UPREIT Units for common stock	$ 1	2,913			(2,914)	0
Conversion of UPREIT Units for common stock (in shares)	102,231
Adjustment of noncontrolling interest		(368)			368	0
Dividends and distributions declared			(88,480)		(15,266)	(103,746)
Balance at Jun. 30, 2015	$ 580	$ 2,053,468	$ (390,695)	$ 1,035	$ 285,536	$ 1,949,924
Balance (in shares) at Jun. 30, 2015	57,995,346					57,995,346

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash flows from operating activities:
Net income	$ 99,453	$ 80,434
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	95,222	91,551
Impairment and other charges		3,842
Gain on disposition of land	(70)
Gain on disposition of property	(40,346)	(31,306)
Stock-based compensation	4,985	7,221
Changes in assets and liabilities:
Cash in escrows, net	(3,720)	(3,487)
Other assets	12,257	13,091
Accounts payable and accrued liabilities	4,715	(1,350)
Total adjustments	73,043	79,562
Net cash provided by operating activities	172,496	159,996
Cash flows from investing activities:
Return (funding) of deposits for real estate acquisitions	5,000	(200)
Purchase of properties	(123,157)	(45,106)
Capital improvements to properties including redevelopment	(54,948)	(58,038)
Additions to construction in progress	(13,698)	(24,551)
Proceeds from sale of land	12,997
Proceeds from sale of properties	123,466	106,273
Proceeds from insurance for property losses	96	88
Withdrawals from (additions to) cash held in escrow, net	91	(90)
Net cash used in investing activities	(50,153)	(21,624)
Cash flows from financing activities:
Proceeds from sale of common stock, net	8,288	11,710
Repurchase of common stock	(3,742)	(3,178)
Scheduled payments of mortgage notes payable	(15,060)	(15,796)
Payoff mortgage notes payable	(60,804)	(122,690)
Proceeds from unsecured line of credit	348,000	299,000
Payments of unsecured line of credit	(298,500)	(209,500)
Payments of deferred loan costs	(290)
Dividends and distributions	(103,559)	(98,389)
Net cash used in financing activities	(125,667)	(138,843)
Net decrease in cash and cash equivalents	(3,324)	(471)
Cash and cash equivalents:
Beginning of year	11,131	9,853
End of period	7,807	9,382
Supplemental disclosure:
Interest capitalized	1,863	4,335
Supplemental disclosure of non-cash investing and financing activities:
Mortgage note (premium) or discount written off	(26)
Exchange of UPREIT Units for common shares	2,914	2,457
Transfers of construction in progress to land, buildings, improvements and equipment	72,611	60,781
Transfers of construction in progress to land held for sale		15,300
Transfers of land to land held for sale	36,517
Capital improvements to properties and construction in progress included in accounts payable	3,504	8,504
Dividends payable included in accounts payable	$ 503	$ 268

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2015
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	1 ORGANIZATION AND BASIS OF PRESENTATION Organization Home Properties, Inc. (the “Company”) was formed in November 1993 as a Maryland corporation. Home Properties, Inc. is a self-administered and self-managed real estate investment trust (“REIT”) that owns, operates, acquires and repositions apartment communities in suburbs of major metropolitan areas, primarily along the East Coast of the United States. The Company completed an initial public offering of 5,408,000 shares of common stock on August 4, 1994 and is traded on the New York Stock Exchange (“NYSE”) under the symbol “HME”. The Company is included in S&P’s MidCap 400 Index. The Company conducts its business through Home Properties, L.P. (the “Operating Partnership”), a New York limited partnership. As of June 30, 2015, the Company owned and operated 121 apartment communities with 41,957 apartments. The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the taxable year ended December 31, 1994. As a result, the Company generally is not subject to federal or state income taxation at the corporate level to the extent it distributes annually at least 90% of its REIT taxable income to its shareholders and satisfies certain other requirements. For all periods presented, the Company distributed in excess of 100% of its taxable income; accordingly, no provision has been made for federal income taxes in the accompanying consolidated financial statements. Basis of Presentation The accompanying consolidated financial statements include the accounts of the Company and its ownership of 85.4% of the limited partnership units in the Operating Partnership (“UPREIT Units” or “UPREIT Unit”) at June 30, 2015 (85.2% at December 31, 2014). The remaining 14.6% is included as noncontrolling interest in these consolidated financial statements at June 30, 2015 (14.8% at December 31, 2014). The Company periodically adjusts the carrying value of noncontrolling interest to reflect its share of the book value of the Operating Partnership. Such adjustments are recorded to additional paid in capital as a reallocation of noncontrolling interest in the accompanying consolidated statements of equity. The Company owns a 1.0% general partner interest in the Operating Partnership and the remainder indirectly as a limited partner through its wholly owned subsidiary, Home Properties I, LLC, which owns 100% of Home Properties Trust, which is the limited partner. Home Properties Trust was formed in September 1997, as a Maryland real estate trust and as a qualified REIT subsidiary (“QRS”), and owns the Company’s share of the limited partner interests in the Operating Partnership. The accompanying consolidated financial statements include the accounts of Home Properties Resident Services, Inc. (“HPRS”). HPRS is a wholly owned subsidiary of the Company. All significant inter-company balances and transactions have been eliminated in these consolidated financial statements. The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and the applicable rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain disclosures that would accompany annual financial statements prepared in accordance with GAAP are omitted. The year-end December 31, 2014 balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. In the opinion of management, all adjustments, consisting solely of normal recurring adjustments, necessary for the fair statement of the consolidated financial statements for the interim periods have been included. The results of operations for the interim periods are not necessarily indicative of results which ultimately may be achieved for the full year. These interim consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Form 10-K for the year ended December 31, 2014.

RECENTLY ADOPTED AND RECENTLY I

RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS	6 Months Ended
	Jun. 30, 2015
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS
RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS	2 RECENTLY ADOPTED AND RECENTLY ISSUED ACCOUNTING STANDARDS On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which raises the threshold for determining which disposals are required to be presented as discontinued operations and modifies related disclosure requirements. ASU 2014-08 states that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be reported as discontinued operations in the financial statements. The standard also requires expanded disclosures about dispositions that provide financial statement users with more information about assets, liabilities, revenues and expenses of discontinued operations. The standard is applied prospectively for all disposals of components of an entity that occur within annual periods beginning on or after December 15, 2014 and interim periods within those years, with early adoption permitted. The Company adopted this guidance effective January 1, 2015 as further discussed in Note 11. On May 28, 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model requiring a company to recognize revenue to depict the transfer of goods or services to a customer at an amount reflecting the consideration it expects to receive in exchange for those goods or services. In adopting ASU 2014-09, companies may use either a full retrospective or a modified retrospective approach. Additionally, this guidance requires improved disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On July 9, 2015 the FASB decided to delay the effective date of ASU 2014-09 by one year. ASU 2014-09 is effective for the first interim period within annual reporting periods beginning after December 15, 2017, and adoption as of the original effective date of December 15, 2016 is permitted. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. For public business entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. The Company is currently assessing the potential impact that the adoption of this guidance will have on its financial position and results of operations.

PLAN OF MERGER

PLAN OF MERGER	6 Months Ended
	Jun. 30, 2015
PLAN OF MERGER
PLAN OF MERGER	3 PLAN OF MERGER Agreement and Plan of Merger On June 22, 2015, the Company, the Operating Partnership, LSREF4 Lighthouse Acquisitions, LLC, a Delaware limited liability company (“Parent”), LSREF4 Lighthouse Corporate Acquisitions, LLC, a Maryland limited liability company and wholly-owned subsidiary of Parent (“MergerSub”), LSREF4 Lighthouse Operating Acquisitions, LLC, a New York limited liability company and wholly-owned subsidiary of MergerSub (“Partnership MergerSub”), and UDR, Inc., a Maryland corporation (“UDR”), entered into an Agreement and Plan of Merger (the “Merger Agreement”). The Merger Agreement provides for (i) the redemption by the Operating Partnership, in a separate transaction, of limited partnership units of limited partners of the Operating Partnership (other than the Company or any of its subsidiaries) (the “outside limited partners”) who are eligible and have timely elected to have some or all of their limited partnership units redeemed (the “Redemption”), (ii) the merger of Partnership MergerSub with and into the Operating Partnership (the “Partnership Merger”), with the Operating Partnership continuing as the surviving entity, and (iii) the merger of the Company with and into MergerSub (the “Company Merger” and together with the Partnership Merger, the “Mergers”), with MergerSub continuing as the surviving entity and a wholly owned subsidiary of Parent. Pursuant to the terms and subject to the conditions set forth in the Merger Agreement, at the effective time of the Company Merger (the “Company Merger Effective Time”), each share of common stock of the Company (“Company Common Stock”), including each share of Company Common Stock subject to restrictions or conditions, issued and outstanding immediately prior to the Company Merger Effective Time will be converted into the right to receive an amount in cash equal to $75.23, without interest. Under the terms of the Merger Agreement, the Company is not permitted to pay further dividends on Company Common Stock, except as is necessary for the Company to maintain its status as a REIT under the Code, and avoid the imposition of corporate level tax or excise tax under Section 4981 of the Code, which authorization, declaration and payment of any such dividend would reduce the Company Common Share Merger Consideration on a dollar-for-dollar basis. In addition, in accordance with the plan documents, immediately prior to the Company Merger Effective Time: · each option to purchase Company Common Stock will be fully vested, and converted into the right to receive, at the Company Merger Effective Time an amount in cash equal to the product of (x) the total number of shares of Company Common Stock subject to such option and (y) the excess, if any, of the amount of the Company Common Share Merger Consideration over the exercise price per share of Company Common Stock subject to such option, with the aggregate amount of such payment rounded down to the nearest cent (less applicable withholding taxes); and · each restricted stock unit of the Company will be fully vested (with performance-based RSUs vesting in a number of shares not to exceed 118.42% of the target number of shares of Company Common Stock subject to such award), and all shares of Company Common Stock represented thereby will be considered outstanding and subject to the right to receive the Company Common Share Merger Consideration (less applicable withholding taxes) at the Company Merger Effective Time. Pursuant to the Merger Agreement, at the effective time of the Redemption each UPREIT Unit that each outside limited partner has timely and validly elected to have redeemed will be redeemed by the Operating Partnership in exchange for: · 2.15 limited partnership units (“UDR Partnership Units”) in UDR Lighthouse DownREIT L.P., a Delaware limited partnership to be formed by UDR and its affiliates for purposes of this transaction (“UDR DownREIT Partnership”); · $3.01 in cash, which is based on $1.40 for each UDR Partnership Unit received by such outside limited partner; and · the right to subscribe for and purchase 2.15 shares of Series F Preferred Stock, par value $0.01 per share, of UDR (“UDR Preferred Stock”) at a purchase price of $0.0001 per share. Pursuant to the Merger Agreement, at the effective time of the Partnership Merger (the “Partnership Merger Effective Time”), each UPREIT Unit that has not been redeemed for UDR Partnership Units, cash and the right to subscribe for and purchase UDR Preferred Stock as described above will be converted into the right to receive an amount in cash equal to $75.23, without interest. The Merger Agreement contains certain customary representations, warranties and covenants, including, among others, covenants by the Company to conduct its business in all material respects in the ordinary course of business consistent with past practice, subject to certain exceptions, during the period between the execution of the Merger Agreement and the consummation of the Mergers and covenants prohibiting the Company and its subsidiaries and representatives, from soliciting, providing information or entering into discussions concerning proposals relating to alternative business combination transactions, subject to certain limited exceptions. The consummation of the Mergers is subject to certain closing conditions, including, among others: (i) approval of the Partnership Merger and the Merger Agreement by the affirmative vote of a majority of the outstanding limited partnership interests of the Operating Partnership held by outside limited partners; (ii) approval of the Company Merger and the Merger Agreement by the affirmative vote of a majority of the outstanding shares of Company Common Stock as of the record date for the special meeting of stockholders of the Company; (iii) the consummation of the transactions contemplated by the Contribution Agreement (defined below); (iv) the consummation of the Redemption; (v) the absence of a material adverse effect on either the Company or Parent; and (vi) the receipt by Parent of a tax opinion relating to the REIT status of the Company. The obligations of the parties to consummate the Mergers are not subject to any financing condition or the receipt of any financing by Parent, MergerSub or Partnership MergerSub. The Merger Agreement may be terminated under certain circumstances. The Merger Agreement provides that, in connection with the termination of the Merger Agreement under specified circumstances, Parent may be required to pay the Company a termination fee of $300,000, and UDR will be entitled to receive a portion of such termination fee. The Merger Agreement also provides that, in connection with the termination of the Merger Agreement under specified circumstances, the Company may be required to pay Parent a termination fee of either $50,000 or $150,000 (and UDR will be entitled to receive a portion of such termination fee and be reimbursed its transaction expenses) or reimburse Parent’s transaction expenses up to $35,000. In addition, the Merger Agreement provides that, in connection with the termination of the Merger Agreement under specified circumstances, UDR may be required to pay Parent and the Company a termination fee of $90,000, of which the Company will receive $55,000 and Parent will receive $35,000. Under certain circumstances, including upon payment of the applicable termination fee, the Company is permitted to terminate the Merger Agreement to enter into a definitive agreement with a third party with respect to a Superior Proposal (as defined in the Merger Agreement). The board of directors of the Company (the “Company Board”) has unanimously approved the Merger Agreement, the Redemption, the Mergers and the other transactions contemplated by the Merger Agreement. BofA Merrill Lynch and Houlihan Lokey provided fairness opinions to the Board in connection with the transaction. As of June 30, 2015, the Company has incurred $3,385 in costs associated with the evaluation and structuring of the Mergers which are included in other expenses for the three and six months ended June 30, 2015. Contribution Agreement On June 22, 2015, the Operating Partnership, UDR, United Dominion Realty, L.P., a Delaware limited partnership (“UDR Partnership”), and Parent entered into a Contribution Agreement (the “Contribution Agreement”). The Contribution Agreement provides that, upon the terms and subject to the conditions set forth in the Contribution Agreement, the Operating Partnership will contribute or cause to be contributed a portfolio of up to six properties to UDR DownREIT Partnership, and UDR DownREIT Partnership will assume certain outstanding indebtedness secured by the contributed properties, in exchange for the following consideration for each UPREIT Unit that the outside limited partners elect to have redeemed (the “Operating Partnership Contribution”): · 2.15 UDR Partnership Units; · $3.01 in cash; and · the right to subscribe for and purchase 2.15 shares of UDR Preferred Stock. The Contribution Agreement also provides that, upon the terms and subject to the conditions set forth in the Contribution Agreement, UDR and UDR Partnership will contribute or cause to be contributed cash and a portfolio of properties to UDR DownREIT Partnership, and UDR DownREIT Partnership will assume certain outstanding indebtedness secured by the contributed properties, in exchange for UDR Partnership Units (the “UDR Contribution” and together with the Operating Partnership Contribution, the “Contributions”). The Contribution Agreement contains certain customary representations, warranties and covenants, including, among others, covenants by the Operating Partnership to cause the properties to be operated in the ordinary course of business consistent with past practice. The consummation of the Contributions is subject to certain customary closing conditions, including, among others, the satisfaction (or waiver) of certain conditions to closing set forth in the Merger Agreement. The Contribution Agreement automatically terminates upon the termination of the Merger Agreement. In addition, UDR or UDR Partnership may terminate the Contribution Agreement if the Contributions have not been consummated on or before the outside date of December 31, 2015. The Board has unanimously approved the Contribution Agreement, the Operating Partnership Contribution and the other transactions contemplated by the Contribution Agreement.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS
ACQUISITIONS	4 ACQUISITIONS Property Acquisitions During the six months ended June 30, 2015, the Company acquired the communities listed below (the “2015 Acquisition Communities”): Cost of Date Year Number Cost of Acquisition Apartment Community Region Acquired Constructed of Units Acquisition Per Unit Park Grove Chicago 1/07/2015 1978/1984 $ $ 130 Sutton Pointe Northern New Jersey 2/19/2015 1963 $ During 2014, the Company acquired the communities listed below (the “2014 Acquisition Communities”): Cost of Date Year Number Cost of Acquisition Apartment Community Region Acquired Constructed of Units Acquisition Per Unit The Preserve at Milltown Philadelphia 6/19/2014 1975 $ $ 120 Willowbrook Philadelphia 7/30/2014 1972 The Lakes of Schaumburg Chicago 11/12/2014 1987 $ All of the 2015 and 2014 Acquisition Communities were recorded at fair value which approximated actual purchase price. None of the acquisitions were subject to bargain purchase options or resulted in goodwill being recorded. In connection with the 2015 Acquisition Communities, closing costs of $377 were incurred in the first quarter of 2015 and are included in other expenses for the six months ended June 30, 2015. In connection with the 2014 Acquisition Communities, closing costs of $274 were incurred in the second quarter of 2014 and are included in other expenses for the three and six months ended June 30, 2014. The Company accounts for its acquisitions of investments in real estate in accordance with the authoritative guidance for business combinations and recorded the purchase price to acquired tangible assets consisting of land, building, and personal property and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases and value of resident relationships, based in each case on their fair values. The following table summarizes the Company’s aggregate purchase price for the 2015 and 2014 Acquisition Communities: 2015 2014 Land $ $ Buildings, improvements and equipment Fair market value adjustment for loan and liabilities assumed Below-market leases ) ) In-place lease intangibles Customer relationships Net assets acquired $ $ Included in the consolidated statements of operations for the six months ended June 30, 2015 are total revenues of $13,719 and net income attributable to common shareholders of $3,365 since the respective date of acquisition through June 30, 2015 for the 2015 Acquisition Communities and January 1, 2015 through June 30, 2015 for the 2014 Acquisition Communities. Included in the consolidated statements of operations for the six months ended June 30, 2014 are total revenues of $159 and net income attributable to common shareholders of $29 since the date of acquisition through June 30, 2014 for The Preserve at Milltown acquired on June 19, 2014. Pro Forma Information The following unaudited pro forma information was prepared as if the 2015 and 2014 Acquisition Communities were acquired as of January 1 of the preceding year. The pro forma financial information is based upon the historical consolidated financial statements of the Company and the acquired communities, and is not necessarily indicative of the consolidated results which actually would have occurred if the transactions had been consummated at January 1 of the preceding year, nor does it purport to represent the results of operations for future periods. Adjustments to the pro forma financial information are based on assumptions and estimates considered appropriate by management and consist principally of providing net operating activity and recording interest, depreciation and amortization. Acquisition related costs in the amount of $377 were excluded from the 2015 pro forma net income attributable to common stockholders. An adjustment was made to include these costs in the 2014 pro forma net income attributable to common stockholders. Six Months Ended June 30, 2015 2014 Pro forma total revenues $ $ Pro forma net income attributable to common stockholders Pro forma earnings per common share: Basic $ $ Diluted

DEVELOPMENT

DEVELOPMENT	6 Months Ended
	Jun. 30, 2015
DEVELOPMENT
DEVELOPMENT	5 DEVELOPMENT Land Held for Sale During the second quarter of 2014, the Board of Directors of the Company approved a strategic decision to discontinue the Company’s new development business. Since that time, development activities have been limited to the completion of the development of the two new apartment communities that were already under construction: Eleven55 Ripley in Silver Spring, MD and The Courts at Spring Mill Station in Conshohocken, PA. Land parcels that will not be developed are being marketed for sale and have been reclassified as land held for sale. As of June 30, 2015, the Company has $36,804 recorded as land held for sale. On March 31, 2015, the Company sold a parcel of vacant land located in Linthicum, Maryland for $13,360. A gain of $70 was recorded in the first quarter 2015 related to this sale. Severance Costs The Company estimated it would incur severance charges in the amount of $1,617 in connection with the strategic decision to discontinue the new development business which led to the elimination of development positions. Severance costs include severance, a stay bonus and acceleration of unamortized equity compensation which could be earned after fulfilling specific service requirements. The estimated severance expense was recorded ratably over the estimated requisite service period during the third and fourth quarters of 2014 and the first quarter of 2015. During the second quarter of 2015, Management determined that a portion of the estimated severance charges, that had been accrued and recorded, are no longer expected to be incurred and therefore reversed $500 in the second quarter of 2015 for a total severance cost of $1,117. Severance charges included in impairment and other charges for the three and six months ended June 30, 2015 are ($500) and ($323), respectively. Redevelopment During the second quarter of 2015, the Company completed the redevelopment of Arbor Park, located in Alexandria, Virginia. The project, which began in 2011, involved extensively renovating 851 garden apartments in fifty-two buildings originally built in 1967. As of June 30, 2015, the Company has incurred costs of $33,050 for the renovation which is included in buildings, improvements and equipment. Development of New Apartment Communities During the second quarter of 2015, the Company completed construction at Eleven55 Ripley, located in Silver Spring, Maryland, consisting of two buildings, a 21 story high-rise and a 5 story mid-rise, for a total of 379 apartment units. As of June 30, 2015, 364 units were rented and occupied, with another 10 units pre-leased. The total construction cost for this development was $113,957. During the second quarter of 2012, the Company started construction on The Courts at Spring Mill Station, located in Conshohocken, Pennsylvania, a suburb of Philadelphia. The combination donut/podium style project, consisting of two buildings, will have a total of 385 apartment units. Initial occupancy occurred in the fourth quarter of 2014. As of June 30, 2015, 125 apartment units were occupied and $27,475 was placed into service and included in buildings, improvements and equipment. Construction is expected to be completed in the fourth quarter of 2015. The construction in progress for this development was $57,620 as of June 30, 2015.

DEBT

DEBT	6 Months Ended
	Jun. 30, 2015
DEBT
DEBT	6 DEBT Mortgage Notes Payable The Company’s mortgage notes payable are summarized as follows: June 30, 2015 December 31, 2014 Fixed rate mortgage notes payable $ $ Variable rate mortgage notes payable Mortgage notes payable $ $ During the six months ended June 30, 2015, the Company repaid $60,804 for three maturing mortgage loans and made scheduled payments of $15,060. Two of the maturing loans repaid had been accounted for at fair value on the date the mortgage loans were assumed by the Company in connection with an acquisition of a community. Upon repayment, an adjustment was recorded to increase interest expense in the amount of $26 to write-off the difference between the carrying value and the contractual balance of the loans. The mortgage notes payable outstanding as of June 30, 2015 mature at various dates from 2015 through 2021, with a weighted average remaining term of approximately three years. The weighted average interest rate of the Company’s fixed rate notes was 5.17% and 5.20% at June 30, 2015 and December 31, 2014, respectively. The weighted average interest rate of the Company’s variable rate notes was 2.93% and 2.90% at June 30, 2015 and December 31, 2014, respectively. Unsecured Term Loans In December 2011, the Company entered into a five-year unsecured term loan for $250,000 with M&T Bank as lead bank, and ten other participating lenders. On August 19, 2013, the Company amended the loan agreement to extend the maturity date to August 18, 2018. The loan bears monthly interest at a variable rate based on LIBOR, plus a spread of 1.00% to 2.00% based on the Company’s leverage ratio. On July 19, 2012, the Company entered into two interest rate swap agreements that effectively convert the variable LIBOR portion of this loan to a fixed rate of 0.685% through December 7, 2016. On November 4, 2013, the Company entered into three additional interest rate swap agreements that effectively convert the variable LIBOR portion of this loan to a fixed rate of 2.604% for the period of December 8, 2016 through August 18, 2018. The interest rate swap agreements are more fully described in Note 8. As of June 30, 2015, based on the Company’s leverage ratio, the spread was 1.00%, and the one-month LIBOR was swapped at 0.685%; resulting in an effective rate of 1.685% for the Company. On November 19, 2014, the Company entered into an unsecured loan agreement with M&T Bank with a May 18, 2015 maturity date. On April 30, 2015, the Company amended the loan agreement to extend the maturity date to July 18, 2015. On July 15, 2015, the maturity date was extended to December 31, 2015 as described in Note 13. The note has a maximum principal amount of $100,000, which the Company borrowed on November 19, 2014. Borrowings under the loan bear interest at a variable rate based on LIBOR, plus a spread of 1.00% to 2.00% based on the Company’s leverage ratio. As of June 30, 2015, based on the Company’s leverage ratio, the spread was 1.00%, and the one-month LIBOR was 0.19%; resulting in an effective rate of 1.19% for the Company. The Company had $100,000 outstanding under the loan as of June 30, 2015. Proceeds from this loan were utilized to pay down the line of credit. The unsecured term loans have covenants that align with the unsecured line of credit facility described below. The Company was in compliance with these financial covenants for all periods presented. Unsecured Senior Notes In December 2011, the Company issued $150,000 of unsecured senior notes. The notes were offered in a private placement in two series: Series A: $90,000 with a seven-year term due December 19, 2018 at a fixed interest rate of 4.46% (“Series A”); and, Series B: $60,000 with a ten-year term due December 19, 2021 at a fixed interest rate of 5.00% (“Series B”). On June 27, 2012, the Company issued another private placement note in the amount of $50,000 with a seven-year term, a fixed rate of 4.16% and a June 27, 2019 maturity date. The proceeds from this note were used to partially fund the purchase of a 1,350 unit apartment community on June 28, 2012. The unsecured senior notes are subject to various covenants and maintenance of certain financial ratios. Although the covenants of the notes do not duplicate all the covenants of the unsecured line of credit facility, any covenants applicable to both the notes and the line are identical. The Company was in compliance with these financial covenants for all periods presented. Unsecured Line of Credit On August 19, 2013, the Company entered into a First Amendment to the Amended and Restated Credit Agreement (the “Credit Agreement”), which provides for a $450,000 revolving credit facility with an initial maturity date of August 18, 2017 and a one-year extension at the Company’s option. The Credit Agreement amended the Company’s prior $275,000 facility, which was scheduled to expire on December 8, 2015, not including a one-year extension at the Company’s option. The Credit Agreement is with M&T Bank and U.S. Bank National Association as joint lead arrangers, M&T Bank as administrative agent and nine other commercial banks as participants. Borrowings under the line of credit bear interest at a variable rate based on LIBOR, plus a spread of 1.00% to 2.00% based on the Company’s leverage ratio. As of June 30, 2015, based on the Company’s leverage ratio, the spread was 1.00%, and the one-month LIBOR was 0.19%; resulting in an effective rate of 1.19% for the Company. The Company had $318,500 outstanding under the credit facility as of June 30, 2015. The Credit Agreement requires the Company to maintain certain financial ratios and measurements including a limitation on outstanding indebtedness and a minimum interest coverage ratio. The Company was in compliance with these financial covenants for all periods presented. The Credit Agreement also provides the ability to issue up to $20,000 in letters of credit. While the issuance of letters of credit does not increase borrowings outstanding under the line of credit, it does reduce the amount available. At June 30, 2015, the Company had outstanding letters of credit of $3,675 and the amount available on the credit facility was $127,825.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS AND REAL ESTATE ASSETS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE OF FINANCIAL INSTRUMENTS AND REAL ESTATE ASSETS
FAIR VALUE OF FINANCIAL INSTRUMENTS AND REAL ESTATE ASSETS	7 FAIR VALUE OF FINANCIAL INSTRUMENTS AND REAL ESTATE ASSETS Financial Instruments Carried at Fair Value The fair value of interest rate swaps, which are more fully described in Note 8, are determined using the market standard of netting the discounted future fixed cash receipts (or payments) and the discounted expected variable cash payments (or receipts). The variable cash payments (or receipts) are based on an expectation of future interest rate forward curves derived from observable market interest rate curves (level 2 inputs, as defined by the authoritative guidance). The Company incorporates credit valuation adjustments to appropriately reflect both its own nonperformance risk and the respective counterparty’s nonperformance risk in the fair value measurements. The Company has determined that the significant inputs used in this model are observable in active markets, therefore considers the interest rate swap asset valuation of $6,817 and $294 at June 30, 2015 and December 31, 2014, respectively, and the interest rate swap liability valuation of $4,281 and $2,339 at June 30, 2015 and December 31, 2014, respectively, as level 2 classifications within the fair value hierarchy. Financial Instruments Not Carried at Fair Value The Company follows the authoritative guidance for fair value measurements when valuing its financial instruments for disclosure purposes. The valuation of financial instruments requires the Company to make estimates and judgments that affect the fair value of the instruments. Cash and cash equivalents, cash in escrows, accounts receivable, other assets, accounts payable, accrued interest payable, accrued expenses and other liabilities, except for interest rate swaps, are all carried at their face amounts, which approximate their fair values due to their relatively short-term nature and high probability of realization. The Company determined the fair value of its mortgage notes payable, unsecured term loans, unsecured senior notes and unsecured line of credit facility using a discounted future cash flow technique that incorporates observable market-based inputs, including a market interest yield curve with adjustments for duration, loan to value (level 2 inputs), and risk profile (level 3 inputs). In determining the market interest yield curve, the Company considered its investment grade credit ratings (level 2 inputs). The Company has determined that the significant inputs used in this model are observable in active markets, therefore considers the valuation classified as level 2 of the fair value hierarchy. At June 30, 2015 and December 31, 2014, the fair value of the Company’s total debt, consisting of the mortgage notes, the unsecured term loans, unsecured senior notes and unsecured line of credit, amounted to a liability of $2,504,385 and $2,552,416, respectively, compared to its carrying amount of $2,429,837 and $2,456,175, respectively.

DERIVATIVE AND HEDGING ACTIVITI

DERIVATIVE AND HEDGING ACTIVITIES	6 Months Ended
	Jun. 30, 2015
DERIVATIVE AND HEDGING ACTIVITIES
DERIVATIVE AND HEDGING ACTIVITIES	8 DERIVATIVE AND HEDGING ACTIVITIES Risk Management Objective of Using Derivatives The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company does not utilize these arrangements for trading or speculative purposes. Cash Flow Hedges of Interest Rate Risk On July 19, 2012, the Company entered into two interest rate swap agreements that effectively convert the one-month LIBOR portion of a $250,000 five-year variable rate unsecured term loan, originally due on December 8, 2016, from a variable rate of one-month LIBOR plus a spread of 1.00% to 2.00% based on the Company’s leverage ratio to a fixed rate of 0.685% plus the applicable spread. As further described in Note 6, the $250,000 unsecured term loan was amended to extend the maturity date to August 18, 2018. On November 4, 2013, the Company entered into three additional interest rate swap agreements for the period of December 8, 2016 through August 18, 2018 to succeed the original two swaps. These three forward swaps effectively convert the variable rate of one-month LIBOR plus a spread of 1.00% to 2.00% based on the Company’s leverage ratio to a fixed rate of 2.604% plus the applicable spread. On January 6, 2015, the Company entered into two forward starting interest rate swaps with a total notional value of $280,000 to hedge the risk of changes in the interest-related cash flows associated with a forecasted issuance of long-term debt. The Company is hedging its exposure to the variability in future cash flows for forecasted transactions over a maximum period of 10 years. As of June 30, 2015, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: Interest Rate Derivative Notional Amount Fixed Interest Rate Variable Interest Rate Effective Date Maturity Date Interest rate swap $ One-month LIBOR August 13, 2012 December 8, 2016 Interest rate swap One-month LIBOR August 13, 2012 December 8, 2016 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018 The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the balance sheets as of June 30, 2015 and December 31, 2014: Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Fair Value at Balance Fair Value at Sheet Location 6/30/2015 12/31/2014 Sheet Location 6/30/2015 12/31/2014 Interest Rate Swap Other Assets $ $ Other Liabilities $ $ The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges are recorded in accumulated other comprehensive income and are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2015, such derivatives were used to hedge the variable cash flows associated with existing variable-rate and forecasted issuances of fixed-rate debt. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2015 and 2014, the Company did not record any hedge ineffectiveness. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. The Company estimates that an additional $188 will be reclassified from accumulated other comprehensive income as an increase to interest expense over the next twelve months. The table below details the location in the financial statements of the gain or loss recognized on interest rate derivatives designated as cash flow hedges for the three and six months ended June 30, 2015 and 2014, respectively: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion) $ $ $ $ Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion) $ $ $ $ Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ - $ - $ - $ - Disclosure of Offsetting Derivatives As of June 30, 2015 and December 31, 2014, the gross amount of derivative assets classified on the balance sheet in other assets was $6,817 and $294, respectively. As of June 30, 2015 and December 31, 2014, the gross amount of derivative liabilities classified on the balance sheet in accrued expenses and other liabilities was $4,281 and $2,339, respectively. The Company does not have any derivative instruments offset on the balance sheet or subject to master netting arrangements or similar agreements. Credit-risk-related Contingent Features The Company is exposed to credit risk in the event of non-performance by the counterparties to the swaps. The Company minimizes this risk exposure by limiting counterparties to major banks who meet established credit and capital guidelines. The Company has agreements with each of its derivative counterparties that provide, among other defaults, that if the Company defaults on indebtedness having an aggregate principal amount in excess of $20,000, including default where repayment of the indebtedness has not been accelerated by the lender, the counterparty could declare the Company in default on its derivative obligations. As of June 30, 2015, the Company has not posted any collateral related to these agreements and was not in breach of any agreement provisions. If the Company had breached any of these provisions, it could have been required to settle its obligations under the agreements at their aggregate termination value of $2,617 at June 30, 2015.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	9 STOCKHOLDERS’ EQUITY Common Stock On April 29, 2014, the stockholders of the Company approved an amendment to the Company’s Articles of Amendment and Restatement of the Articles of Incorporation, as amended, to increase the number of authorized shares of the Company’s Common Stock, par value $.01 per share, from 80,000,000 shares to 160,000,000 shares. At-The-Market Equity Offering Program On May 14, 2012, the Company initiated an At-The-Market (“ATM”) equity offering program through which it is authorized to sell up to 4,400,000 shares of common stock from time to time in ATM offerings or negotiated transactions. From inception through June 30, 2013, the Company issued 2,430,233 shares of common stock at an average price of $62.81 per share, for aggregate gross proceeds of $152,636 and aggregate net proceeds of $149,418 after deducting commissions and other transaction costs of $3,218. No shares of common stock have been issued under the ATM equity offering program since the second quarter of 2013. As of June 30, 2015, 1,969,767 shares remain available under this ATM program. Under the terms of the Merger Agreement, the Company is prohibited from issuing additional common stock. The Company used the net proceeds from the ATM offerings primarily for general corporate purposes including acquisitions, development and redevelopment of apartment communities. Dividends and Distributions On May 22, 2015, the Company paid a dividend in the amount of $0.76 per share of common stock to stockholders of record and a distribution of $0.76 per UPREIT Unit to unitholders of record as of the close of business on May 12, 2015. Total Shares and Units Outstanding At June 30, 2015, 57,995,346 common shares, and 10,012,124 UPREIT Units were outstanding for a total of 68,007,470 common share equivalents. Stock-based Compensation On April 29, 2014, the stockholders of the Company approved an amendment to the Company’s 2011 Stock Benefit Plan (the “2011 Plan”) to increase the maximum number of shares of Common Stock which may be subject to awards issued under the 2011 Plan by 4,000,000 shares; and to provide that each full value award granted after April 29, 2014 will count as 5.45 shares available for issuance under the 2011 Plan. As of June 30, 2015 there were 3,400,126 shares available for future grant of awards. The Company’s Board of Directors has approved a performance-based equity program for administering awards under the Company’s 2011 Plan for the executive officers (the “2011 Executive Performance-Based Equity Program”). It is a subplan of the 2011 Plan, approved by the stockholders at their 2011 Annual Meeting. On February 2, 2015, awards in connection with the 2011 Executive Performance-Based Equity Program, with an estimated fair value of $5,040, were granted to executive officers of the Company. Awards are in the form of restricted stock units with a service condition and three market conditions. The measurement period for these awards began on January 1, 2015 and will end on December 31, 2017. Expense attributed to the awards will be recognized based on the underlying vesting conditions of the awards, which substantially vest during the measurement period, taking into account retirement eligibility. During the three and six months ended June 30, 2015, the Company recognized stock-based compensation expense of $242 and $2,565, respectively, for the February 2, 2015 awards. On May 5, 2015, the Company granted awards of restricted stock under the 2011 Plan. Restricted stock with an estimated fair value of $2,384 was granted to eligible employees of the Company and restricted stock with an estimated fair value of $700 was granted to directors. The Company recognizes stock-based compensation cost as expense ratably on a straight-line basis over the requisite service period. In determining the service period, the Company considers service requirements, the vesting period and retirement eligibility of the grantee. During the three months ended June 30, 2015, the Company recognized stock-based compensation expense of $363 and $700 related to the May 5, 2015 restricted stock grants for employees and directors, respectively. Earnings Per Share Basic earnings per share (“EPS”) is computed as net income attributable to common stockholders divided by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from common shares issuable through stock-based compensation (using the treasury stock method). The exchange of an UPREIT Unit for a share of common stock has no effect on diluted EPS as unitholders and stockholders effectively share equally in the net income of the Operating Partnership. Income from continuing operations and discontinued operations is the same for both the basic and diluted calculation. The reconciliation of basic and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 is as follows: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ $ $ $ Less: Income from continuing operations attributable to noncontrolling interest ) ) ) ) Income from continuing operations attributable to common stockholders $ $ $ $ Discontinued operations $ - $ $ - $ Less: Discontinued operations attributable to noncontrolling interest - ) - ) Discontinued operations attributable to common stockholders $ - $ $ - $ Denominator: Basic weighted average number of common shares outstanding Effect of dilutive stock options Effect of restricted shares and restricted stock units Diluted weighted average number of common shares outstanding Earnings per common share: Basic earnings per share: Income from continuing operations $ $ $ $ Discontinued operations - - Net income attributable to common stockholders $ $ $ $ Diluted earnings per share: Income from continuing operations $ $ $ $ Discontinued operations - - Net income attributable to common stockholders $ $ $ $ Unexercised stock options to purchase 0 and 412,133 shares of the Company’s common stock for the three months ended June 30, 2015 and 2014, respectively, and 0 and 415,133 shares of the Company’s common stock for the six months ended June 30, 2015 and 2014, respectively, were not included in the computations of diluted EPS because the effects would be anti-dilutive.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
	Jun. 30, 2015
SEGMENT REPORTING
SEGMENT REPORTING	10 SEGMENT REPORTING The Company is engaged in the ownership and management of market rate apartment communities. Each apartment community is considered a separate operating segment. Each segment on a standalone basis is less than 10% of the revenues, net operating income and assets of the combined reported operating segment and meets a majority of the aggregation criteria under authoritative guidance. The operating segments are aggregated as Core and Non-core properties. Non-segment revenue to reconcile to total revenue consists of other income. Non-segment assets to reconcile to total assets include cash and cash equivalents, cash in escrows, accounts receivable, prepaid expenses, deferred charges and other assets. Core properties consist of apartment communities which have been owned more than one full calendar year. Therefore, the Core properties represent communities owned as of January 1, 2014. Non-core properties consist of apartment communities acquired, developed or redeveloped during 2014 and 2015, such that comparable operating results are not available. Disposed properties consist of communities sold since January 1, 2015 that are not classified as discontinued operations. Each of our apartment communities generally has similar economic characteristics, facilities, services and residents, although the economic climate of the markets in which they are located may vary from time to time. The Company’s chief operating decision maker assesses and measures segment operating results based on a performance measure referred to as net operating income. Net operating income is defined as total revenues less operating and maintenance expenses, and is a generally accepted industry financial measure. The accounting policies of the segments are the same as those described in Notes 1, 2 and 3 to the Consolidated Financial Statements contained in the Company’s Form 10-K for the year ended December 31, 2014. The revenues and net operating income for each of the reportable segments are summarized as follows for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Core properties $ $ $ $ Non-core properties Disposed properties - Reconciling items Total revenues $ $ $ $ Net operating income: Core properties $ $ $ $ Non-core properties Disposed properties - Reconciling items Net operating income, including reconciling items General and administrative expenses ) ) ) ) Interest expense ) ) ) ) Depreciation and amortization ) ) ) ) Other expenses ) ) ) ) Impairment and other charges ) ) Income from continuing operations, before gain on disposition of real estate $ $ $ $ The assets for each of the reportable segments are summarized as follows as of June 30, 2015 and December 31, 2014: Assets June 30, 2015 December 31, 2014 Apartment communities Core properties $ $ Non-core properties Disposed properties - Reconciling items Total assets $ $

DISPOSITION OF REAL ESTATE AND

DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2015
DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS
DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS	11 DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS As discussed in Note 2, on January 1, 2015, the Company prospectively adopted ASU 2014-08 which raises the threshold for determining which disposals are required to be presented as discontinued operations. ASU 2014-08 states that only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be reported as discontinued operations in the financial statements. The Company believes that routine sales of apartment communities generally will not meet the requirements for reporting within discontinued operations under ASU 2014-08. Prior to the adoption of ASU 2014-08, the Company reported its property dispositions as discontinued operations as prescribed by the former guidance which, assuming no significant continuing involvement by the former owner after the sale, considered the sale of an apartment community as a discontinued operation. In addition, apartment communities classified as held for sale were also considered discontinued operations. The Company generally considered assets to be held for sale when all significant contingencies surrounding the closing had been resolved, which often corresponded with the actual closing date. Disposition of Real Estate During the six months ended June 30, 2015, the Company sold two communities in separate transactions (the “2015 Disposed Communities”). A summary of the 2015 Disposed Communities recorded as continuing operations is as follows: Apartment Community Region Date Sold Number of Units Sales Price Gain on Sale The New Colonies Chicago 1/26/2015 $ $ The Coves at Chesapeake Baltimore 3/25/2015 $ $ The results of operations for the 2015 Disposed Communities are included in continuing operations in the consolidated statements of operations. The gain on disposition of the 2015 Disposed Communities is included in gain on disposition of property within income from continuing operations in the consolidated statements of operations. The following is a summary of the 2015 Disposed Communities for the three and six months ended June 30, 2015 and 2014: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Rental income $ - $ $ $ Property other income - Total revenues - Expenses: Operating and maintenance - Depreciation and amortization - Total expenses - Income from continuing operations, before gain on disposition of real estate $ - $ $ $ Gain on disposition of property $ - $ - $ $ - Discontinued Operations Included in discontinued operations for the three and six months ended June 30, 2014 are the operating results of three apartment communities sold in separate transactions during the year ended December 31, 2014 (“2014 Disposed Communities”). For purposes of the discontinued operations presentation, the Company only includes interest expense and losses from early extinguishment of debt associated with specific mortgage indebtedness of the properties that are sold or held for sale. A summary of the 2014 Disposed Communities recorded as discontinued operations is as follows: Apartment Community Region Date Sold Number of Units Sales Price Gain on Sale Cider Mill Washington, D.C. 2/26/2014 $ $ Woodleaf Washington, D.C. 12/19/2014 The Manor - MD Washington, D.C. 12/29/2014 $ $ The results of discontinued operations are summarized for the three and six months ended June 30, 2014 as follows: Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Revenues: Rental income $ $ Property other income Total revenues Expenses: Operating and maintenance Interest expense (1) Depreciation and amortization Total expenses Income (loss) from discontinued operations Gain on disposition of property - Discontinued operations $ $ (1) Includes debt extinguishment costs of $802 incurred as a result of repaying property specific debt triggered upon sale for the six months ended June 30, 2014.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES	12 COMMITMENTS AND CONTINGENCIES Letters of Credit As of June 30, 2015, the Company had issued $3,675 in letters of credit, which were provided under the Company’s $450,000 unsecured Credit Agreement. The letters of credit were required to be issued under certain construction projects, workers’ compensation and health insurance policies. Debt Covenants The unsecured notes payable and unsecured Credit Agreement contain restrictions which, among other things, require maintenance of certain financial ratios. The Company was in compliance with these financial ratios for all periods presented. Included in the Company’s consolidated balance sheets at June 30, 2015 and December 31, 2014 are assets of its subsidiary Home Properties Fair Oaks, LLC, owner of The Courts at Fair Oaks, Fairfax County, VA, that are pledged as collateral for specific indebtedness and are not available to satisfy any other obligations of the Company. Also included in the Company’s consolidated balance sheet at June 30, 2015 and December 31, 2014 are assets of its subsidiary Home Properties Schaumburg, LLC, owner of The Lakes of Schaumburg, Cook County, IL, that are pledged as collateral for specific indebtedness and are not available to satisfy any other obligations of the Company. Tax Protection Obligations In connection with various UPREIT transactions, the Company has agreed to maintain certain levels of nonrecourse debt for a period of 7 to 10 years associated with the contributed properties acquired. In addition, the Company is restricted in its ability to sell certain contributed properties (3% of the owned portfolio at June 30, 2015) for a contract period of 7 to 10 years except through a tax deferred Internal Revenue Code Section 1031 like-kind exchange. The remaining terms on the sale restrictions range from 6 months to 2 years. Tax Credit Guarantee For periods before October 13, 2010, the Company, through its general partnership interest in an affordable property limited partnership, had guaranteed certain low income housing tax credits to limited partners in this partnership through 2015 totaling approximately $3,000. The Company’s general partner interest in this entity was sold on October 13, 2010. The tax credit guarantee was reduced to a $3,000 secondary guarantee. As of June 30, 2015, there were no known conditions that would make such payments probable relating to the tax credit guarantee; therefore, no liability has been recorded in the financial statements. Executive Retention Plan The Executive Retention Plan provides for severance benefits and other compensation to be paid to certain employees in the event of a change in control of the Company and a subsequent termination of their employment. Contingencies The Company is subject to a variety of legal actions for personal injury or property damage arising in the ordinary course of its business, most of which are covered by general liability and property insurance. Various claims of employment and resident discrimination are also periodically brought, most of which also are covered by insurance. While the resolution of these matters cannot be predicted with certainty, management believes that the final outcome of such legal proceedings and claims will not have a material adverse effect on the Company’s liquidity, financial position or results of operations. In addition, on June 26, 2015, a purported class action related to the Merger Agreement, Kelly v. Home Properties, Inc., et al., was filed in the Circuit Court for Baltimore City, Maryland, Case No. 24C15003400, against the Company, the Operating Partnership, Lone Star Funds, Parent, MergerSub, Partnership MergerSub, and the members of our board of directors. Five other lawsuits, Lipovich v. Pettinella et al., Jonas v. Home Properties, Inc., et al., Umbach v. Home Properties, Inc., et al., Halberstam v. Home Properties, Inc., et al. and Sindoni v. Home Properties, Inc., et al., were subsequently filed in the Circuit Court for Baltimore City, Maryland, Case Nos. 24C15003523, 24C15003618, 24C15003707, 24C15003737 and 24C15003881, on July 1, 2015, July 9, 2015, July 15, 2015, July 16, 2015, and July 24, 2015 respectively. These six lawsuits generally allege breaches of fiduciary duties by our directors in connection with the merger agreement. More specifically, the complaints allege that the defendants failed to take appropriate steps to maximize stockholder value and improperly favored themselves in connection with the proposed transaction. The complaints further assert that the Merger Agreement contains several deal protection provisions that are unnecessarily preclusive. The complaints also allege that some or all of the Company, the Operating Partnership, Lone Star Funds, Parent, MergerSub, Partnership MergerSub, and UDR aided and abetted the directors’ purported breaches of fiduciary duty. Additionally, the plaintiff in Jonas v. Home Properties, Inc., et al. purports to bring derivative claims for breach of fiduciary duty. The complaints seek to enjoin defendants from consummating the proposed mergers, to rescind, to the extent already implemented, the Merger Agreement, and various additional remedies. The defendants believe that the allegations against them lack merit and intend to defend against the lawsuits vigorously. Stockholders may file additional lawsuits challenging the Mergers or the other transactions contemplated by the Merger Agreement, which may name the Company, the Operating Partnership and members of the Company Board as defendants. No assurance can be made as to the outcome of such lawsuits or the lawsuits described above, including the amount of costs associated with defending these claims or any other liabilities that may be incurred in connection with the litigation of these claims. If plaintiffs are successful in obtaining an injunction prohibiting the parties from completing the Mergers on the agreed-upon terms, such an injunction may delay the completion of the Mergers in the expected timeframe, or may prevent the Mergers from being completed altogether. Whether or not any plaintiff’s claim is successful, this type of litigation may result in significant costs and diverts management’s attention and resources, which could adversely affect the operation of our business.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	13 SUBSEQUENT EVENTS On July 15, 2015, the Company entered into a second amendment to the $100,000 unsecured loan agreement with M&T Bank originally entered into on November 19, 2014, and as further amended on April 30, 2015, to extend the maturity from July 18, 2015 to December 31, 2015. On August 3, 2015, the outside limited partners of the Operating Partnership voted to approve the Partnership Merger and the Merger Agreement by affirmative vote of a majority of the outstanding limited partnership interests.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jun. 30, 2015
ACQUISITIONS
Schedule of communities acquired	Cost of Date Year Number Cost of Acquisition Apartment Community Region Acquired Constructed of Units Acquisition Per Unit Park Grove Chicago 1/07/2015 1978/1984 $ $ 130 Sutton Pointe Northern New Jersey 2/19/2015 1963 $ Cost of Date Year Number Cost of Acquisition Apartment Community Region Acquired Constructed of Units Acquisition Per Unit The Preserve at Milltown Philadelphia 6/19/2014 1975 $ $ 120 Willowbrook Philadelphia 7/30/2014 1972 The Lakes of Schaumburg Chicago 11/12/2014 1987 $
Summary of aggregate purchase price allocation	2015 2014 Land $ $ Buildings, improvements and equipment Fair market value adjustment for loan and liabilities assumed Below-market leases ) ) In-place lease intangibles Customer relationships Net assets acquired $ $
Pro Forma Financial Information	Six Months Ended June 30, 2015 2014 Pro forma total revenues $ $ Pro forma net income attributable to common stockholders Pro forma earnings per common share: Basic $ $ Diluted

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
DEBT
Schedule of mortgage notes payable	June 30, 2015 December 31, 2014 Fixed rate mortgage notes payable $ $ Variable rate mortgage notes payable Mortgage notes payable $ $

DERIVATIVE AND HEDGING ACTIVI23

DERIVATIVE AND HEDGING ACTIVITIES (Tables)	6 Months Ended
	Jun. 30, 2015
DERIVATIVE AND HEDGING ACTIVITIES
Schedule of outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk	Interest Rate Derivative Notional Amount Fixed Interest Rate Variable Interest Rate Effective Date Maturity Date Interest rate swap $ One-month LIBOR August 13, 2012 December 8, 2016 Interest rate swap One-month LIBOR August 13, 2012 December 8, 2016 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018 Interest rate swap One-month LIBOR December 8, 2016 August 18, 2018
Schedule of balance sheet location and fair value of derivative financial instruments	Fair Value of Derivative Instruments Asset Derivatives Liability Derivatives Balance Fair Value at Balance Fair Value at Sheet Location 6/30/2015 12/31/2014 Sheet Location 6/30/2015 12/31/2014 Interest Rate Swap Other Assets $ $ Other Liabilities $ $
Schedule of location in financial statements of gain or loss recognized on interest rate derivatives designated as cash flow hedges	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion) $ $ $ $ Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion) $ $ $ $ Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing) $ - $ - $ - $ -

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY
Reconciliation of basic and diluted earnings per share	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Income from continuing operations $ $ $ $ Less: Income from continuing operations attributable to noncontrolling interest ) ) ) ) Income from continuing operations attributable to common stockholders $ $ $ $ Discontinued operations $ - $ $ - $ Less: Discontinued operations attributable to noncontrolling interest - ) - ) Discontinued operations attributable to common stockholders $ - $ $ - $ Denominator: Basic weighted average number of common shares outstanding Effect of dilutive stock options Effect of restricted shares and restricted stock units Diluted weighted average number of common shares outstanding Earnings per common share: Basic earnings per share: Income from continuing operations $ $ $ $ Discontinued operations - - Net income attributable to common stockholders $ $ $ $ Diluted earnings per share: Income from continuing operations $ $ $ $ Discontinued operations - - Net income attributable to common stockholders $ $ $ $

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
	Jun. 30, 2015
SEGMENT REPORTING
Schedule of revenues and net operating income for each of the reportable segments	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Core properties $ $ $ $ Non-core properties Disposed properties - Reconciling items Total revenues $ $ $ $ Net operating income: Core properties $ $ $ $ Non-core properties Disposed properties - Reconciling items Net operating income, including reconciling items General and administrative expenses ) ) ) ) Interest expense ) ) ) ) Depreciation and amortization ) ) ) ) Other expenses ) ) ) ) Impairment and other charges ) ) Income from continuing operations, before gain on disposition of real estate $ $ $ $
Summary of assets for each of the reportable segments	Assets June 30, 2015 December 31, 2014 Apartment communities Core properties $ $ Non-core properties Disposed properties - Reconciling items Total assets $ $

DISPOSITION OF REAL ESTATE AN26

DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
Disposal Group, Continuing Operations
Disposition of Real Estate
Summary of community dispositions	Apartment Community Region Date Sold Number of Units Sales Price Gain on Sale The New Colonies Chicago 1/26/2015 $ $ The Coves at Chesapeake Baltimore 3/25/2015 $ $
Operating results of disposal groups	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues: Rental income $ - $ $ $ Property other income - Total revenues - Expenses: Operating and maintenance - Depreciation and amortization - Total expenses - Income from continuing operations, before gain on disposition of real estate $ - $ $ $ Gain on disposition of property $ - $ - $ $ -
Disposal Group, Discontinued Operations
Disposition of Real Estate
Summary of community dispositions	Apartment Community Region Date Sold Number of Units Sales Price Gain on Sale Cider Mill Washington, D.C. 2/26/2014 $ $ Woodleaf Washington, D.C. 12/19/2014 The Manor - MD Washington, D.C. 12/29/2014 $ $
Operating results of disposal groups	Three Months Ended June 30, Six Months Ended June 30, 2014 2014 Revenues: Rental income $ $ Property other income Total revenues Expenses: Operating and maintenance Interest expense (1) Depreciation and amortization Total expenses Income (loss) from discontinued operations Gain on disposition of property - Discontinued operations $ $ (1) Includes debt extinguishment costs of $802 incurred as a result of repaying property specific debt triggered upon sale for the six months ended June 30, 2014.

ORGANIZATION AND BASIS OF PRE27

ORGANIZATION AND BASIS OF PRESENTATION (Details) $ in Thousands	Aug. 04, 1994shares	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)
Number of communities, owned		121
Number of apartments, owned		41,957
Minimum percentage of annual distribution of REIT taxable income for federal or state income tax exemption		90.00%
Minimum percentage of REIT taxable income distributed		100.00%	100.00%
Provision for federal income taxes | $		$ 0	$ 0
IPO
Shares issued | shares	5,408,000
Operating Partnership
Percentage of ownership in partnership		85.40%	85.20%
Noncontrolling interest in partnership (as a percent)		14.60%	14.80%
Interest owned in Operating Partnership (as a percent)		1.00%
Home Properties Trust
Percentage of holdings as limited partner		100.00%

PLAN OF MERGER (Details)

PLAN OF MERGER (Details) $ / shares in Units, $ in Thousands	Jun. 22, 2015USD ($)item$ / shares	Jun. 30, 2015USD ($)
Operating Partnership | Contribution Agreement
Plan of Merger
Limited partnership unit redemption cash consideration (in dollars per unit) | $ / shares	$ 3.01
Operating Partnership | Contribution Agreement | UDR Inc
Plan of Merger
Ratio used to determine right to subscribe for and purchase preferred stock	2.15
Operating Partnership | Contribution Agreement | UDR DownREIT Partnership
Plan of Merger
Limited partnership unit redemption exchange ratio	2.15
Operating Partnership | Contribution Agreement | UDR DownREIT Partnership | Maximum
Plan of Merger
Number of properties to be contributed | item	6
Merger Agreement | Parent - Lighthouse Acquisitions
Plan of Merger
Termination fee if Parent terminates agreement	$ 300,000
Termination fee if Company terminates agreement - Level 1	50,000
Termination fee if Company terminates agreement - Level 2	150,000
Merger Agreement | Parent - Lighthouse Acquisitions | Other expense
Plan of Merger
Costs associated with evaluation and structuring of Mergers		$ 3,385
Merger Agreement | Parent - Lighthouse Acquisitions | Maximum
Plan of Merger
Reimbursement of transaction expenses that may be required if Company terminates agreement	35,000
Merger Agreement | Parent - Lighthouse Acquisitions | UDR Inc
Plan of Merger
Aggregate termination fee due if UDR terminates agreement	90,000
Termination fee due to Company if UDR terminates agreement	55,000
Termination fee due Parent if UDR terminates agreement	$ 35,000
Merger Agreement | Operating Partnership
Plan of Merger
Limited partnership unit redemption cash consideration (in dollars per unit) | $ / shares	$ 3.01
Merger Agreement | Operating Partnership | UDR Inc
Plan of Merger
Ratio used to determine right to subscribe for and purchase preferred stock	2.15
Series F Preferred stock, subscription par value (in dollars per share) | $ / shares	$ 0.01
Purchase price (in dollars per share) | $ / shares	$ 0.0001
Merger Agreement | Operating Partnership | UDR DownREIT Partnership
Plan of Merger
Limited partnership unit redemption exchange ratio	2.15
UDR Partnership unit price used as basis for redemption cash consideration (in dollars per unit) | $ / shares	$ 1.40
Company Merger | Parent - Lighthouse Acquisitions
Plan of Merger
Per share merger cash consideration (in dollars per share) | $ / shares	$ 75.23
Maximum percentage of target number of shares to be vested under performance based RSUs	118.42%
Partnership Merger | Parent - Lighthouse Acquisitions
Plan of Merger
Per share merger cash consideration (in dollars per share) | $ / shares	$ 75.23

ACQUISITIONS (Details)

ACQUISITIONS (Details) $ / shares in Units, $ in Thousands	Feb. 19, 2015USD ($)item	Jan. 07, 2015USD ($)item	Nov. 12, 2014USD ($)item	Jul. 30, 2014USD ($)item	Jun. 19, 2014USD ($)item	Jun. 30, 2015USD ($)item$ / shares	Jun. 30, 2014USD ($)$ / shares	Dec. 31, 2014USD ($)item	Mar. 31, 2015USD ($)	Jun. 28, 2012item
Property Acquisitions
Community acquired, number of units | item										1,350
Pro forma financial information
Pro forma total revenues						$ 354,141	$ 343,961
Pro forma net income attributable to common stockholders						$ 85,205	$ 70,184
Pro forma earnings per common share:
Basic (in dollars per share) | $ / shares						$ 1.47	$ 1.23
Diluted (in dollars per share) | $ / shares						$ 1.46	$ 1.22
Acquisition-related costs
Pro forma financial information
Pro forma net income attributable to common stockholders						$ 377		$ (377)
2015 and 2014 Acquisition Communities
Aggregate purchase price
Revenues from acquired apartment communities						13,719
Net income attributable to common shareholders from acquired apartment communities						$ 3,365
2015 Acquisition Communities
Property Acquisitions
Community acquired, number of units | item						951
Purchase price of community units acquired						$ 123,000
Closing costs of unit community									$ 377
Aggregate purchase price
Land						18,478
Buildings, improvements and equipment						104,084
Fair market value adjustment for loan and liabilities assumed						40
Below-market leases						(117)
Net assets acquired						123,040
2015 Acquisition Communities | In-place lease intangibles
Aggregate purchase price
Finite-lived intangibles						334
2015 Acquisition Communities | Customer relationships
Aggregate purchase price
Finite-lived intangibles						$ 221
Park Grove
Property Acquisitions
Community acquired, number of units | item		710
Purchase price of community units acquired		$ 92,000
Cost of Acquisition Per Unit		$ 130
Sutton Pointe
Property Acquisitions
Community acquired, number of units | item	241
Purchase price of community units acquired	$ 31,000
Cost of Acquisition Per Unit	$ 129
2014 Acquisition Communities
Property Acquisitions
Community acquired, number of units | item								1,052
Purchase price of community units acquired								$ 141,500
Closing costs of unit community							$ 274
Aggregate purchase price
Land								20,810
Buildings, improvements and equipment								120,027
Fair market value adjustment for loan and liabilities assumed								1,969
Below-market leases								(161)
Net assets acquired								143,469
2014 Acquisition Communities | In-place lease intangibles
Aggregate purchase price
Finite-lived intangibles								471
2014 Acquisition Communities | Customer relationships
Aggregate purchase price
Finite-lived intangibles								$ 353
The Preserve at Milltown
Property Acquisitions
Community acquired, number of units | item					376
Purchase price of community units acquired					$ 45,000
Cost of Acquisition Per Unit					$ 120
Aggregate purchase price
Revenues from acquired apartment communities							159
Net income attributable to common shareholders from acquired apartment communities							$ 29
Willowbrook
Property Acquisitions
Community acquired, number of units | item				248
Purchase price of community units acquired				$ 30,500
Cost of Acquisition Per Unit				$ 123
The Lakes of Schaumburg
Property Acquisitions
Community acquired, number of units | item			428
Purchase price of community units acquired			$ 66,000
Cost of Acquisition Per Unit			$ 154

DEVELOPMENT (Details)

DEVELOPMENT (Details) $ in Thousands	Mar. 31, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Jun. 30, 2012item	Jun. 30, 2015USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)
Development
Number of projects to which development of new apartment communities is limited | item					2
Land held for sale		$ 36,804			$ 36,804	$ 36,804	$ 13,114
Proceeds from sale of land					12,997
Gain on sale of land					70
Net severance charges		(500)			(323)
Severance charges						1,117
Construction in progress		57,620			57,620	57,620	$ 118,595
Expected
Development
Severance charges					1,617
Land in Linthicum, Maryland
Development
Proceeds from sale of land	$ 13,360
Gain on sale of land			$ 70
Arbor Park of Alexandria
Development
Renovation costs included in buildings, improvements and equipment		33,050			$ 33,050	33,050
Number of buildings completed and occupied | item					52
Number of units completed | item					851
Ripley Street
Development
Number of buildings completed and occupied | item					2
Number of units completed | item					379
Number of units rented and occupied | item					364
Number of units pre-leased | item					10
Total construction costs					$ 113,957
Ripley Street 21 Story Building
Development
Number of stories | item					21
Ripley Street 5 Story Building
Development
Number of stories | item					5
Courts at Spring Mill Station
Development
Construction in progress for development, number of buildings | item				2
Construction in progress for development, number of units | item				385
Construction in progress		$ 57,620			$ 57,620	$ 57,620
Construction in progress for development, number of units occupied | item					125
Construction costs transferred to buildings, improvements, equipment, or other assets					$ 27,475

DEBT (Details)

DEBT (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Notes payable
Mortgage notes payable	$ 1,561,337		$ 1,637,175
Payoff mortgage notes payable	60,804	$ 122,690
Scheduled payments of mortgage notes payable	15,060	$ 15,796
Mortgage notes
Notes payable
Mortgage notes payable	1,561,337		1,637,175
Payoff mortgage notes payable	60,804
Scheduled payments of mortgage notes payable	$ 15,060
Number of loans repaid which were accounted for at fair value at time assumed | item	2
Adjustment to write-off the difference between carrying value and contractual balance of the loans	$ 26
Number of mortgage loans maturing | item	3
Weighted average remaining term of notes	3 years
Fixed rate mortgage notes payable
Notes payable
Mortgage notes payable	$ 1,537,946		$ 1,613,465
Weighted average interest rate (as a percent)	5.17%		5.20%
Variable rate mortgage notes payable
Notes payable
Mortgage notes payable	$ 23,391		$ 23,710
Weighted average interest rate (as a percent)	2.93%		2.90%

DEBT (Details 2)

DEBT (Details 2) $ in Thousands	Nov. 19, 2014USD ($)	Jul. 19, 2012item	Jun. 27, 2012USD ($)	Dec. 31, 2011USD ($)item	Jun. 30, 2015USD ($)	Dec. 31, 2014USD ($)	Nov. 04, 2013item	Jun. 28, 2012item
Notes payable
Community acquired, number of units | item								1,350
Amount outstanding					$ 550,000	$ 550,000
Unsecured Term Loan
Notes payable
Unsecured notes, maturity term				5 years
Unsecured notes				$ 250,000
Number of participating lenders | item				10
Variable rate basis		one-month LIBOR		LIBOR	one-month LIBOR
Interest rate spread (as a percent)					1.00%
Unsecured Term Loan | Interest Rate Swap 0.685 Percent
Notes payable
Effective rate (as a percent)					1.685%
Number of interest rate swap agreements entered into | item		2
Interest rate (as a percent)		0.685%			0.685%
Unsecured Term Loan | Interest Rate Swaps 2.604 Percent
Notes payable
Number of interest rate swap agreements entered into | item							3
Interest rate (as a percent)							2.604%
Unsecured Term Loan | Minimum
Notes payable
Interest rate spread (as a percent)				1.00%
Unsecured Term Loan | Maximum
Notes payable
Interest rate spread (as a percent)				2.00%
Unsecured Term Loan Three
Notes payable
Variable rate basis	LIBOR				one-month LIBOR
Interest rate spread (as a percent)					1.00%
Effective rate (as a percent)					1.19%
Interest rate (as a percent)					0.19%
Amount outstanding					$ 100,000
Unsecured Term Loan Three | Minimum
Notes payable
Interest rate spread (as a percent)	1.00%
Unsecured Term Loan Three | Maximum
Notes payable
Unsecured notes	$ 100,000
Interest rate spread (as a percent)	2.00%
Unsecured Senior Notes
Notes payable
Number of series in private placement | item				2
Unsecured notes				$ 150,000
Unsecured Senior Notes Series A
Notes payable
Unsecured notes, maturity term				7 years
Unsecured notes				$ 90,000
Interest rate (as a percent)				4.46%
Unsecured Senior Notes Series B
Notes payable
Unsecured notes, maturity term				10 years
Unsecured notes				$ 60,000
Interest rate (as a percent)				5.00%
Private Placement Note Due June 2019
Notes payable
Unsecured notes, maturity term			7 years
Unsecured notes			$ 50,000
Interest rate (as a percent)			4.16%

DEBT (Details 3)

DEBT (Details 3) $ in Thousands	6 Months Ended
	Jun. 30, 2015USD ($)item	Dec. 31, 2014USD ($)	Aug. 19, 2013USD ($)	Aug. 18, 2013USD ($)
Unsecured line of credit
Unsecured line of credit	$ 318,500	$ 269,000
Revolving Credit Facility
Unsecured line of credit
Maximum borrowing capacity	$ 450,000		$ 450,000	$ 275,000
Line of credit, extension option	1 year
Line of credit participation, number of additional commercial banks | item	9
Unsecured line of credit	$ 318,500
Interest rate spread (as a percent)	1.00%
Line of credit facility effective rate (as a percent)	1.19%
Revolving Credit Facility | Minimum
Unsecured line of credit
Interest rate spread (as a percent)	1.00%
Revolving Credit Facility | Maximum
Unsecured line of credit
Interest rate spread (as a percent)	2.00%
Revolving Credit Facility | one-month LIBOR
Unsecured line of credit
Variable rate basis	one-month LIBOR
One-month LIBOR rate (as a percent)	0.19%
Letters of credit
Unsecured line of credit
Maximum borrowing capacity	$ 20,000
Letters of credit outstanding	3,675
Available amount on credit facility	$ 127,825

FAIR VALUE OF FINANCIAL INSTR34

FAIR VALUE OF FINANCIAL INSTRUMENTS AND REAL ESTATE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Interest rate swaps
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value of derivative assets	$ 6,817	$ 294
Fair value of derivative liability	4,281	2,339
Level 2 | Fair value
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt, consisting of mortgage notes, the unsecured term loan, unsecured senior notes and unsecured line of credit	2,504,385	2,552,416
Level 2 | Carrying amount
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt, consisting of mortgage notes, the unsecured term loan, unsecured senior notes and unsecured line of credit	2,429,837	2,456,175
Level 2 | Interest rate swaps
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value of derivative assets	6,817	294
Fair value of derivative liability	$ 4,281	$ 2,339

DERIVATIVE AND HEDGING ACTIVI35

DERIVATIVE AND HEDGING ACTIVITIES (Details) $ in Thousands	Jan. 06, 2015USD ($)item	Jul. 19, 2012item	Dec. 31, 2011USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)	Nov. 04, 2013item
Derivative and hedging activities
Minimum aggregate principal amount of indebtedness in default upon which counterparties could declare the Company in default on its derivative obligations				$ 20,000		$ 20,000
Aggregate termination value for settlement obligations				2,617		$ 2,617
Unsecured Term Loan
Derivative and hedging activities
Unsecured term Loan			$ 250,000
Unsecured term Loan, maturity term			5 years
Variable rate basis		one-month LIBOR	LIBOR			one-month LIBOR
Interest rate spread (as a percent)						1.00%
Unsecured Term Loan | Minimum
Derivative and hedging activities
Interest rate spread (as a percent)			1.00%
Unsecured Term Loan | Maximum
Derivative and hedging activities
Interest rate spread (as a percent)			2.00%
Interest rate swaps
Derivative and hedging activities
Number of interest rate swap agreements entered into | item	2
Fair value of derivative assets				6,817		$ 6,817		$ 294
Fair value of derivative liability				4,281		4,281		$ 2,339
Estimated amount reclassified from accumulated other comprehensive income to interest expense over the next twelve months						188
Interest rate swaps | Cash flow hedges
Derivative and hedging activities
Notional Amount	$ 280,000
Maximum period of hedging exposure to variability in future cash flows	10 years
Amount of gain (loss) recognized in accumulated other comprehensive income on interest rate derivatives (effective portion)				9,145	$ (2,744)	2,631	$ (3,950)
Amount of gain (loss) reclassified from accumulated other comprehensive income into income as interest expense (effective portion)				(314)	$ (315)	(625)	$ (626)
Interest rate swaps | Unsecured Term Loan | one-month LIBOR
Derivative and hedging activities
Variable rate basis		one-month LIBOR
Interest Rate Swaps 0.685 Percent | Unsecured Term Loan
Derivative and hedging activities
Number of interest rate swap agreements entered into | item		2
Interest rate (as a percent)		0.685%
Interest Rate Swap 0.6800 Percent | Cash flow hedges
Derivative and hedging activities
Notional Amount				$ 150,000		$ 150,000
Fixed Interest Rate (as a percent)				0.68%		0.68%
Interest Rate Swap 0.6925 Percent | Cash flow hedges
Derivative and hedging activities
Notional Amount				$ 100,000		$ 100,000
Fixed Interest Rate (as a percent)				0.6925%		0.6925%
Interest Rate Swaps 2.604 Percent | Unsecured Term Loan
Derivative and hedging activities
Number of interest rate swap agreements entered into | item									3
Interest rate (as a percent)									2.604%
Interest Rate Swap 2.6010 Percent One | Cash flow hedges
Derivative and hedging activities
Notional Amount				$ 100,000		$ 100,000
Fixed Interest Rate (as a percent)				2.601%		2.601%
Interest Rate Swap 2.6010 Percent Two | Cash flow hedges
Derivative and hedging activities
Notional Amount				$ 75,000		$ 75,000
Fixed Interest Rate (as a percent)				2.601%		2.601%
Interest Rate Swap 2.6125 Percent | Cash flow hedges
Derivative and hedging activities
Notional Amount				$ 75,000		$ 75,000
Fixed Interest Rate (as a percent)				2.6125%		2.6125%

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands	May. 22, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2015	Dec. 31, 2014	Apr. 29, 2014	Apr. 28, 2014	May. 14, 2012
Common Stock
Common stock, par value (in dollars per share)		$ 0.01			$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized		160,000,000			160,000,000	160,000,000	160,000,000	80,000,000
Net Proceeds		$ 8,288	$ 11,710
Dividend paid per share (in dollars per share)	$ 0.76
Distribution paid per UPREIT unit to unitholders (in dollars per unit)	$ 0.76
At-The-Market Equity Offering Program
Common Stock
Shares issued				2,430,233	0
Gross proceeds				$ 152,636
Net Proceeds				149,418
Commissions and other transaction costs				$ 3,218
Shares available under the ATM program		1,969,767			1,969,767
Maximum | At-The-Market Equity Offering Program
Common Stock
Common stock, shares authorized through equity offering									4,400,000
Average | At-The-Market Equity Offering Program
Common Stock
Average sales price (in dollars per share)				$ 62.81

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) $ in Thousands	May. 05, 2015USD ($)	Feb. 02, 2015USD ($)item	Apr. 29, 2014shares	Jun. 30, 2015USD ($)shares	Jun. 30, 2015USD ($)shares	Dec. 31, 2014shares
STOCKHOLDERS' EQUITY
Common stock, shares outstanding				57,995,346	57,995,346	57,703,957
UPREIT Units outstanding (in shares)				10,012,124	10,012,124
Share equivalents outstanding				68,007,470	68,007,470
2011 Plan
Stock-based Compensation
Number of additional shares of common stock authorized for issuance			4,000,000
Number of shares available for future grant				3,400,126	3,400,126
2011 Plan | Employees
Stock-based Compensation
Total stock-based compensation cost recognized in earnings | $				$ 363
2011 Plan | Directors
Stock-based Compensation
Total stock-based compensation cost recognized in earnings | $				700
2011 Plan | Full Value Award
Stock-based Compensation
Ratio of shares available for issuance for each full value award granted			5.45
2011 Plan | Restricted Stock | Employees
Stock-based Compensation
Fair value of estimated share based awards | $	$ 2,384
2011 Plan | Restricted Stock | Directors
Stock-based Compensation
Fair value of estimated share based awards | $	$ 700
2011 Executive Performance Based Equity Program | Executive Officer
Stock-based Compensation
Fair value of estimated share based awards | $		$ 5,040
Total stock-based compensation cost recognized in earnings | $				$ 242	$ 2,565
Number of market condition measures | item		3

STOCKHOLDERS' EQUITY (Details 3

STOCKHOLDERS' EQUITY (Details 3) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Reconciliation of basic and diluted earnings per share
Effect of exchange of an UPREIT Unit on diluted EPS (in dollars per share)			$ 0
Income from continuing operations	$ 32,150	$ 25,587	$ 99,453	$ 47,418
Less: Income from continuing operations attributable to noncontrolling interest	(4,719)	(3,862)	(14,664)	(7,171)
Income from continuing operations attributable to common stockholders	$ 27,431	21,725	$ 84,789	40,247
Discontinued operations		876		33,016
Less: Discontinued operations attributable to noncontrolling interest		(132)		(5,003)
Discontinued operations attributable to common stockholders		$ 744		$ 28,013
Basic weighted average number of common shares outstanding	58,048,732	57,247,851	57,960,502	57,162,306
Diluted weighted average number of common shares outstanding	58,684,728	57,795,142	58,561,929	57,660,163
Basic earnings per share:
Income from continuing operations (in dollars per share)	$ 0.47	$ 0.38	$ 1.46	$ 0.70
Discontinued operations (in dollars per share)		0.01		0.49
Net income attributable to common stockholders (in dollars per share)	0.47	0.39	1.46	1.19
Diluted earnings per share:
Income from continuing operations (in dollars per share)	0.47	0.38	1.45	0.70
Discontinued operations (in dollars per share)		0.01		0.48
Net income attributable to common stockholders (in dollars per share)	$ 0.47	$ 0.39	$ 1.45	$ 1.18
Stock Options
Reconciliation of basic and diluted earnings per share
Effect of stock awards (in shares)	479,291	385,151	460,400	370,076
Diluted earnings per share:
Shares not included in computations of diluted EPS	0	412,133	0	415,133
Restricted Stock and Restricted Stock Units
Reconciliation of basic and diluted earnings per share
Effect of stock awards (in shares)	156,705	162,140	141,027	127,781

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues and net operating income for each of the reportable segments
Total revenues	$ 176,884	$ 165,583	$ 353,528	$ 330,881
Net operating income, including reconciling items	115,878	106,115	225,215	205,842
General and administrative expenses	(7,399)	(7,126)	(15,942)	(16,384)
Interest expense	(25,130)	(24,717)	(50,614)	(49,570)
Depreciation and amortization	(48,314)	(44,569)	(96,179)	(88,346)
Other expenses	(3,385)	(274)	(3,762)	(282)
Impairment and other charges	500	(3,842)	319	(3,842)
Income from continuing operations, before gain on disposition of real estate	32,150	25,587	$ 59,037	47,418
Operating Segments | Core Properties
Revenues and net operating income for each of the reportable segments
Threshold period of time owned			1 year
Total revenues	163,328	157,769	$ 325,425	315,741
Net operating income, including reconciling items	107,650	101,411	208,006	196,847
Operating Segments | Non-core Properties
Revenues and net operating income for each of the reportable segments
Total revenues	13,326	4,102	25,126	7,779
Net operating income, including reconciling items	7,998	2,263	14,977	4,231
Operating Segments | Disposed properties
Revenues and net operating income for each of the reportable segments
Total revenues		3,533	2,430	7,040
Net operating income, including reconciling items		2,262	1,685	4,443
Reconciling Items
Revenues and net operating income for each of the reportable segments
Total revenues	230	179	547	321
Net operating income, including reconciling items	$ 230	$ 179	$ 547	$ 321

SEGMENT REPORTING (Details 2)

SEGMENT REPORTING (Details 2) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
Assets for each of the reportable segments
Total assets	$ 4,476,807	$ 4,488,535
Operating Segments | Core Properties
Assets for each of the reportable segments
Total assets	3,794,589	3,832,432
Operating Segments | Non-core Properties
Assets for each of the reportable segments
Total assets	597,717	477,630
Operating Segments | Disposed properties
Assets for each of the reportable segments
Total assets		83,438
Reconciling Items
Assets for each of the reportable segments
Total assets	$ 84,501	$ 95,035

DISPOSITION OF REAL ESTATE AN41

DISPOSITION OF REAL ESTATE AND DISCONTINUED OPERATIONS (Details) $ in Thousands	Mar. 25, 2015USD ($)item	Jan. 26, 2015USD ($)item	Dec. 29, 2014USD ($)item	Dec. 19, 2014USD ($)item	Feb. 26, 2014USD ($)item	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)item	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item	Dec. 31, 2014USD ($)item
Operating results of discontinued operations
Gain on Sale									$ 31,306
Expenses:
Income from continuing operations, before gain on disposition of real estate						$ 32,150	$ 25,587	$ 59,037	47,418
Gain on disposition of property								$ 40,346
Income (loss) from discontinued operations							876		1,710
Discontinued operations							876		33,016
Disposal Group, Continuing Operations | 2015 Disposed Communities
Operating results of discontinued operations
Number of Units | item								1,141
Sales Price								$ 125,568
Number of apartment communities sold | item								2
Revenues:
Rental income							3,219	$ 2,076	6,388
Property other income							314	354	652
Total revenues							3,533	2,430	7,040
Expenses:
Operating and maintenance							1,271	745	2,597
Depreciation and amortization							965	421	1,925
Total expenses							2,236	1,166	4,522
Income from continuing operations, before gain on disposition of real estate							$ 1,297	1,264	2,518
Gain on disposition of property								$ 40,346
Disposal Group, Continuing Operations | The New Colonies
Operating results of discontinued operations
Number of Units | item		672
Sales Price		$ 49,318
Expenses:
Gain on disposition of property		$ 27,524
Disposal Group, Continuing Operations | The Coves at Chesapeake
Operating results of discontinued operations
Number of Units | item	469
Sales Price	$ 76,250
Expenses:
Gain on disposition of property	$ 12,822
Disposal Group, Discontinued Operations | 2014 Disposed Communities
Operating results of discontinued operations
Number of Units | item										1,527
Sales Price										$ 216,800
Gain on Sale									$ 31,306	$ 81,832
Number of apartment communities sold | item							3		3
Revenues:
Rental income							$ 2,591		$ 7,124
Property other income							196		722
Total revenues							2,787		7,846
Expenses:
Operating and maintenance							834		2,614
Interest expense, including prepayment penalties							479		2,063
Depreciation and amortization							598		1,459
Total expenses							1,911		6,136
Income (loss) from discontinued operations							876		1,710
Discontinued operations							$ 876		33,016
Debt extinguishment costs and other one-time costs incurred									$ 802
Disposal Group, Discontinued Operations | Cider Mill
Operating results of discontinued operations
Number of Units | item					864
Sales Price					$ 110,000
Gain on Sale					$ 31,306
Disposal Group, Discontinued Operations | Woodleaf
Operating results of discontinued operations
Number of Units | item				228
Sales Price				$ 33,500
Gain on Sale				$ 14,297
Disposal Group, Discontinued Operations | The Manor - MD
Operating results of discontinued operations
Number of Units | item			435
Sales Price			$ 73,300
Gain on Sale			$ 36,229

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	1 Months Ended		6 Months Ended
	Jul. 24, 2015item	Jul. 24, 2015item	Jun. 30, 2015USD ($)	Aug. 19, 2013USD ($)	Aug. 18, 2013USD ($)	Oct. 13, 2010USD ($)	Oct. 12, 2010USD ($)
Tax Protection Obligations
Percentage of apartment communities of owned portfolio restricted to be sold by the entity			3.00%
Guarantees related to low income housing tax credits
Tax Credit Guarantee
Tax credit guarantee							$ 3,000
Secondary tax credit guarantee						$ 3,000
Liability related to tax credit guarantee			$ 0
Minimum
Tax Protection Obligations
Period for nonrecourse debt associated with contributed properties acquired			7 years
Term of sale restriction related to contributed properties			7 years
Remaining term on sale restrictions			6 months
Maximum
Tax Protection Obligations
Period for nonrecourse debt associated with contributed properties acquired			10 years
Term of sale restriction related to contributed properties			10 years
Remaining term on sale restrictions			2 years
Letters of credit
Letters of Credit
Letters of credit outstanding			$ 3,675
Unsecured credit agreement			20,000
Revolving Credit Facility
Letters of Credit
Unsecured credit agreement			$ 450,000	$ 450,000	$ 275,000
Merger Agreement
Contingencies
Number of lawsuits filed | item	6	5

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Thousands	Jun. 30, 2015USD ($)
Second Amendment To Unsecured Term Loan
Loan agreement
Unsecured notes	$ 100,000

Uncategorized Items - hme-20150

Label	Element	Value
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 26,463
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	us-gaap_ProfitLoss	$ 32,150