8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

November 7, 2007

HOME PROPERTIES, INC.

(Exact name of Registrant as specified in its Charter)

MARYLAND	1-13136	16-1455126
(State or other jurisdiction	(Commission	(IRS Employer
of incorporation)	File Number)	Identification Number)

850 Clinton Square, Rochester, New York 14604

(Address of principal executive offices)

(585) 546-4900

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications  pursuant to Rule  14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications  pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 7.01.  REGULATION FD DISCLOSURE

On November 7, 2007, the Registrant issued a press release announcing its results for the third quarter of 2007.  The related press release is attached hereto as Exhibit 99.1.  The information in this Current Report is being furnished pursuant to Item 7.01, Regulation FD Disclosure.

The attached press release includes a presentation of Home Properties' Funds from Operations ("FFO") and Net Operating Income ("NOI"). FFO does and NOI may fall within the definition of "non-GAAP financial measure" set forth in Item 10(e) of Regulation S-K and as a result Home Properties is or may be required to include in this Current Report a statement disclosing the reasons why management believes that presentation of these measures provides useful information to investors.  The Company believes that FFO is helpful to investors as a supplemental measure of the operating performance of a real estate company because, along with cash flows from operating activities, financing activities and investing activities, it provides investors an understanding of the ability of the Company to incur and service debt and to make capital expenditures.  Home Properties believes that NOI is helpful to investors as a supplemental measure of the operating performance of a real estate company because it is a direct measure of the actual operating results of the Company's apartment properties.  The Company also uses these two measures to compare its performance to that of its peer group.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

c.           Exhibits

Exhibit 99.1 Press Release

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated:                      November 8, 2007	HOME PROPERTIES, INC.
	(Registrant)
	By:        /s/ David P. Gardner
	David P. Gardner
	Executive Vice President and
	Chief Financial Officer

EX-99

EXHIBIT 99

FOR IMMEDIATE RELEASE

HOME PROPERTIES REPORTS THIRD QUARTER 2007 RESULTS

ROCHESTER, NY, November 7, 2007 – Home Properties (NYSE:HME) today released financial results for the third quarter ending September 30, 2007.  All results are reported on a diluted basis.

“Home Properties again expects to achieve a record level of Funds from Operations per share in 2007 and 2008,” said Home Properties’ President and CEO Edward J. Pettinella.  “Completion of the utility cost recovery programs, savings from the installation of web-based property management software and the expected revenue increase from a yield management system will benefit future results, enabling the Company to achieve superior performance in a moderating operating environment.”

Earnings per share ("EPS") for the quarter ended September 30, 2007 was $0.84, compared to $0.30 for the quarter ended September 30, 2006, due to a $27.9 million (before the allocation of minority interest) or $0.59 per share gain on sale of real estate in the current quarter.  EPS for the nine months ended September 30, 2007 was $1.25, compared to $0.77 for the nine months ended September 30, 2006.  The year-over-year increase of $0.48 per share is primarily attributable to the $0.59 per share impact of the gain on sale of real estate described above.

For the quarter ended September 30, 2007, Funds From Operations (“FFO”) was $39.5 million, or $0.84 per share, compared to $39.3 million, or $0.83 per share, for the quarter ended September 30, 2006.  FFO for the nine months ended September 30, 2007 was $2.42 per share, compared to $2.30 in the year-ago period.  Excluding the non-cash charge of $0.04 in the 2007 first quarter related to costs associated with the initial offering of the Series F preferred shares which were redeemed, Operating FFO for the nine months was $2.46, a 6.7% increase over the same period results in 2006.  A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

Third Quarter Operating Results

For the third quarter of 2007, same-property comparisons (for 110 “Core” properties containing 32,910 apartment units owned since January 1, 2006) reflected an increase in total revenues of 2.4% compared to the same quarter a year ago.  Net operating income (“NOI”) increased by 3.8% from the third quarter of 2006.  Property level operating expenses increased by 0.3% for the quarter, primarily due to increases in water and sewer costs, personnel expense, property insurance and real estate taxes which were offset by a reduction in repairs and maintenance expenses.  Second and third quarter increases to property insurance reserves, were largely due to costs associated with claims, which the Company expects will be recovered as counterclaims are settled in the Company’s favor in future periods.

Home Properties Reports Third Quarter 2007 Results      

For Immediate Release:  November 7, 2007            

Page 2 of  8

The higher level of general and administrative expenses in the 2007 third quarter compared to the Company’s prior guidance was largely due to one-time costs incurred in pursuing a transaction that was not completed.

Average physical occupancy for the Core properties was 95.0% during the third quarter of 2007, an increase of 0.3% over the third quarter of 2006.  Rental revenue, including utility reimbursements, increased 2.8% compared to the year-ago period.

On a sequential basis, compared to the 2007 second quarter results for the Core properties, total revenues were down 0.7% in the third quarter of 2007, expenses were down 2.6% and net operating income was up 0.4%.  The total revenue decrease in the third quarter compared to the second quarter represents typical seasonality from lower utility recovery revenues.  Quarterly natural gas recovery income fluctuates considerably, with the third quarter the lowest of the year.  Looking solely at base rent, excluding utility income, average rental rates were up 1.1% sequentially and base rental income was up 0.7%.  Average physical occupancy held steady at 95.0%.

Occupancies for the 4,560 apartment units acquired/developed between January 1, 2006 and September 30, 2007 (the “Recently Acquired Communities”) averaged 94.6% during the third quarter of 2007.

Year-to-Date Operating Results

For the nine months ended September 30, 2007, same-property comparisons for the Core properties reflected an increase in total revenues of 4.1%, resulting in a 5.5% increase in net operating income compared to the first nine months of 2006.  Property level operating expenses increased by 2.2%, primarily due to increases in personnel expense, property insurance expense, real estate taxes and snow removal costs, partially offset by lower repairs and maintenance expenses.

Average physical occupancy for the Core properties was 94.8% during the first nine months of 2007, identical to a year ago, with average monthly rents, including utility reimbursements, rising 4.4%.

The yield on the Recently Acquired Communities during the first nine months of 2007 averaged 6.9% on an annualized basis (calculated as the net operating income from the properties, less an allowance for general and administrative expenses equal to 3% of revenues, all divided by the acquisition costs plus capital improvement expenditures in excess of normalized levels).  This compares to the first year underwriting expectations of 6.4%.

Acquisitions and Dispositions

There was one acquisition after the third quarter close and three dispositions during the 2007 third quarter.  Amounts included in discontinued operations are associated with the 2007 dispositions.

Home Properties Reports Third Quarter 2007 Results      

For Immediate Release:  November 7, 2007            

Page 3 of  8

On November 1, 2007, the Company acquired Dunfield Townhomes, a 312-unit apartment community located in White Marsh, MD for $34.6 million, including closing costs, which equates to approximately $111,000 per apartment unit.  Consideration for the purchase included the assumption of an existing $13.1 million fixed rate mortgage at an interest rate of 5.25% maturing on March 1, 2028, $10.2 million of cash and $11.3 million of Operating Partnership units (“OP units”).  For purposes of determining the number of OP units issued, a value of $62.17 per unit was set.  The weighted average first year capitalization rate expected on this acquisition is 6.5% after allocating 3.0% of rental revenues for management and overhead expenses and before normalized capital expenditures.

During the third quarter of 2007, the Company closed on three separate sale transactions, with a total of 775 units, for $90.6 million.  A gain on sale of approximately $28 million, before the allocation of minority interest, was recorded in the third quarter related to these sales.  The weighted average first year capitalization rate projected on these dispositions is 5.9%.

Capital Markets Activities

As of September 30, 2007, the Company’s ratio of debt-to-total market capitalization was 46.9% (based on the September 28, 2007 stock price of $52.18 to determine equity value), with no outstanding balance on its $140 million revolving credit facility and $23.2 million of unrestricted cash on hand.  Total debt of $2.2 billion was outstanding, at rates of interest averaging 5.6% and with staggered maturities averaging approximately seven years.  Approximately 98.7% of total indebtedness is at fixed rates.  Interest coverage averaged 2.4 times during the quarter and the fixed charge ratio averaged 2.3 times during the quarter.

During the third quarter of 2007, the Company repurchased 317,700 of its common shares for $15.7 million, or a weighted average price of $49.56 per share.  Through the end of the third quarter, the total shares repurchased during 2007 were approximately 426,700 shares for $21.7 million, or a weighted average price of $50.95 per share.  As of September 30, 2007, the Company has Board authorization to buy back up to approximately 2.2 million additional shares of its common stock or OP units.

Outlook

For 2007, the Company has decreased its prior guidance based only on lower actual third quarter results compared to the original range of guidance and now expects Operating FFO per share to be between $3.25 and $3.28 per share, which will produce Operating FFO per share growth of 6.0% to 6.9% when compared to 2006 results.  This guidance range reflects management’s current assessment of economic and market conditions.  The Series F Perpetual Preferred shares were redeemed at the end of the first quarter 2007, and the Company incurred a charge to FFO of $1.9 million for the original issuance costs, or $0.04 per share.  This charge is reported in FFO per share results but has been excluded from Operating FFO.

The guidance for the fourth quarter of 2007 is reaffirmed without change and is expected to be between $0.80 and $0.83.

Home Properties Reports Third Quarter 2007 Results      

For Immediate Release:  November 7, 2007            

Page 4 of  8

Conference Call

The Company will conduct a conference call and simultaneous webcast tomorrow at 11:00 AM Eastern Time to review and comment on the information reported in this release.  To listen to the call, please dial 800-266-2145 (International 212-676-5362).  A replay of the call will be available through November 14, 2007, by dialing 800-633-8284 or 402-977-9140 and entering 21319516.  The Company webcast, which includes a slide presentation, will be available, live at 11:00 AM and archived by 1:00 PM, through the "Investors" section of our Web site, homeproperties.com, on the Investor Relations home page.

The Company produces supplemental information that provides details regarding property operations, other income, acquisitions, sales, market geographic breakdown, debt and new development.  The supplemental information is available via the Company's Web site, e-mail or facsimile upon request.

This press release contains forward-looking statements.  Although the Company believes expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved.  Factors that may cause actual results to differ include general economic and local real estate conditions, the weather and other conditions that might affect operating expenses, the timely completion of repositioning and new development activities within anticipated budgets, the actual pace of future acquisitions and dispositions, and continued access to capital to fund growth.

Home Properties is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast, Mid-Atlantic and Southeast Florida markets.  Currently, Home Properties operates 127 communities containing 38,943 apartment units.  Of these, 37,793 units in 125 communities are owned directly by the Company; 868 units are partially owned and managed by the Company as general partner, and 282 units are managed for other owners.  For more information, visit Home Properties’ Web site at homeproperties.com.

Tables to follow.

Home Properties Reports Third Quarter 2007 Results      

For Immediate Release:  November 7, 2007            

Page 5 of  8

	Avg. Physical
Third Quarter Results:	Occupancy(a)		3Q '07	3Q '07 vs. 3Q '06 % Growth
			Average
			Monthly
	3Q	3Q	Rent /	Rental	Total	Total
	'07	'06	Occ Unit	Rates	Revenue	Expense	NOI
Core Properties(b)	95.0%	94.7%	$1,108	2.2%	2.4%	0.3%	3.8%
Acquisition Properties(c)	94.6%	NA	$1,109	NA	NA	NA	NA
TOTAL PORTFOLIO	94.9%	94.7%	$1,108	NA	NA	NA	NA

	Avg. Physical
Year-To-Date Results:	Occupancy(a)		YTD '07	YTD '07 vs. YTD '06 % Growth
			Average
			Monthly
	YTD	YTD	Rent /	Rental	Total	Total
	'07	'06	Occ Unit	Rates	Revenue	Expense	NOI
Core Properties(b)	94.8%	94.8%	$1,098	2.4%	4.1%	2.2%	5.5%
Acquisition Properties(c)	94.1%	NA	$1,110	NA	NA	NA	NA
TOTAL PORTFOLIO	94.7%	94.8%	$1,099	NA	NA	NA	NA

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

^(b) Core Properties includes 110 properties with 32,910 apartment units owned throughout 2006 and 2007.

^(c) Reflects 14 properties with 4,560 apartment units acquired/developed subsequent to January 1, 2006.

Home Properties Reports Third Quarter 2007 Results

For Immediate Release:  November 7, 2007

Page 6 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data – Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2007			2006			2007			2006
Rental income	$	118,108		$	103,531		$	349,408		$	305,075
Property other income		8,038			7,098			28,274			19,580
Interest income		396			553			1,686			763
Other income		229			1,692			1,062			2,713
Total revenues		126,771			112,874			380,430			328,131
Operating and maintenance		51,151			44,632			157,731			137,991
General and administrative		6,159			5,607			17,630			16,703
Interest		29,629			26,373			89,605			78,181
Depreciation and amortization		28,044			23,638			82,725			68,447
Total expenses		114,983			100,250			347,691			301,322
Income from operations		11,788			12,624			32,739			26,809
Minority interest in Operating Partnership		(3,354	)		(3,237	)		(8,454	)		(6,866	)
Income from continuing operations		8,434			9,387			24,285			19,943
Discontinued operations
Income from operations, net of minority interest		186			2,524			1,555			7,448
Gain (loss) on disposition of property, net of minority Interest		19,995			(200	)		19,747			2,161
Discontinued operations		20,181			2,324			21,302			9,609
Net Income		28,615			11,711			45,587			29,552
Preferred dividends		-			(1,350	)		(1,290	)		(4,050	)
Redemption of preferred stock		-			-			(1,902	)		-
Net income available to common shareholders	$	28,615		$	10,361		$	42,395		$	25,502
Reconciliation from net income available to common shareholders to      Funds From Operations:
Net income available to common shareholders	$	28,615		$	10,361		$	42,395		$	25,502
Real property depreciation and amortization		27,453			24,477			82,623			74,016
Minority Interest		3,354			3,237			8,454			6,866
Minority Interest – income from discontinued operations		74			1,017			626			3,491
Loss (gain) on disposition of property, net of minority Interest		(19,995	)		200			(19,747	)		(2,161	)
Loss from early extinguishment of debt in connection with sale of real estate		-			-			-			2,970
FFO - basic (1)	$	39,501		$	39,292		$	114,351		$	110,684

⁽¹⁾ Pursuant to the revised definition of Funds From Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"), FFO is defined as net income (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")) excluding gains or losses from disposition of property, minority interest and extraordinary items plus depreciation from real property.  Because of the limitations of the FFO definition as published by NAREIT as set forth above, the Company has made certain interpretations in applying the definition.  The Company believes all adjustments not specifically provided for are consistent with the definition.  Other similarly titled measures may not be calculated in the same manner.

Home Properties Reports Third Quarter 2007 Results

For Immediate Release:  November 7, 2007

Page 7 of  8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data – Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2007			2006			2007			2006
FFO – basic	$	39,501		$	39,292		$	114,351		$	110,684
Preferred dividends - convertible preferred stock (2)		-			-			-			-
FFO – diluted	$	39,501		$	39,292		$	114,351		$	110,684
FFO – basic	$	39,501		$	39,292		$	114,351		$	110,684
Preferred dividends - convertible preferred stock		-			-			-			-
Redemption of Series F Preferred stock		-			-			1,902			-
FFO - operating (4)	$	39,501		$	39,292		$	116,253		$	110,684
FFO – basic	$	39,501		$	39,292		$	114,351		$	110,684
Preferred dividends - convertible preferred stock		-			-			-			-
Recurring non-revenue generating capital expenses		(7,155	)		(5,097	)		(21,482	)		(16,486	)
AFFO (5)	$	32,346		$	34,195		$	92,869		$	94,198
FFO – operating	$	39,501		$	39,292		$	116,253		$	110,684
Recurring non-revenue generating capital expenses		(7,155	)		(5,097	)		(21,482	)		(16,486	)
AFFO - operating	$	32,346		$	34,195		$	94,771		$	94,198
Weighted average shares/units outstanding:
Shares – basic		33,382.4			33,336.3			33,222.5			32,526.8
Shares – diluted		33,973.1			34,103.6			33,951.8			33,145.7
Shares/units – basic (3)		46,710.4			46,765.2			46,611.7			47,495.8
Shares/units – diluted (3)		47,301.1			47,532.5			47,341.0			48,144.6
Per share/unit:
Net income – basic	$	0.86		$	0.31		$	1.28		$	0.78
Net income – diluted	$	0.84		$	0.30		$	1.25		$	0.77
FFO – basic	$	0.85		$	0.84		$	2.45		$	2.33
FFO – diluted	$	0.84		$	0.83		$	2.42		$	2.30
Operating FFO – diluted, before preferred stock redemption (4)	$	0.84		$	0.83		$	2.46		$	2.30
AFFO (5)	$	0.68		$	0.72		$	1.96		$	1.96
Operating AFFO – before preferred stock redemption (4) (5)	$	0.68		$	0.72		$	2.00		$	1.96
Common Dividend paid	$	0.65		$	0.64		$	1.95		$	1.92

⁽²⁾ There was no convertible preferred stock outstanding during the periods presented.

⁽³⁾ Basic includes common stock outstanding plus operating partnership units in Home Properties, L.P., which can be converted into shares of common stock.  Diluted includes additional common stock equivalents.

⁽⁴⁾ Operating FFO is defined as FFO as computed in accordance with NAREIT definition, adjusted for the addback of real estate impairment charges and preferred stock redemption costs.  This is presented for a consistent comparison of how NAREIT defined FFO in 2003.

⁽⁵⁾ Adjusted Funds From Operations ("AFFO") is defined as gross FFO less an annual reserve for anticipated recurring, non-revenue generating capitalized costs of $760 and $525 per apartment unit in 2007 and 2006, respectively.  The resulting sum is divided by the weighted average shares/units on a diluted basis to arrive at AFFO per share/unit.

Home Properties Reports Third Quarter 2007 Results      

For Immediate Release:  November 7, 2007            

Page 8 of  8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share data - Unaudited)

	September 30, 2007			December 31, 2006
Land	$	512,210		$	493,017
Construction in progress, including land		52,674			1,409
Buildings, improvements and equipment		3,077,049			2,957,336
		3,641,933			3,451,762
Accumulated depreciation		(521,363	)		(450,129	)
Real estate, net		3,120,570			3,001,633
Cash and cash equivalents		23,153			118,212
Cash in escrows		30,171			74,069
Accounts receivable		10,244			9,287
Prepaid expenses		18,402			15,059
Deferred charges		12,435			13,619
Other assets		6,009			8,539
Total assets	$	3,220,984		$	3,240,418
Mortgage notes payable	$	1,962,647		$	1,924,313
Exchangeable senior notes		200,000			200,000
Line of credit		-			-
Accounts payable		19,460			20,797
Accrued interest payable		12,814			10,473
Accrued expenses and other liabilities		25,152			24,697
Security deposits		23,102			21,979
Total liabilities		2,243,175			2,202,259
Minority interest		280,999			282,542
Stockholders’ equity		696,810			755,617
Total liabilities and stockholders’ equity	$	3,220,984		$	3,240,418
Total shares/units outstanding:
Common stock		33,359.4			33,103.2
Operating partnership units		13,288.1			13,290.4
		46,647.5			46,393.6

# # #

For further information:

David P. Gardner, Executive Vice President and Chief Financial Officer, (585) 246-4113

Charis W. Warshof, Vice President, Investor Relations, (585) 295-4237