8-K/A

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

February 22, 2008

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/A 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

This Amendment amends the current report on Form 8-K filed by Home Properties, Inc. on February 22, 2008, to furnish (not file) the supplemental information to the Press Release of February 21, 2008, relating to fourth quarter 2007 results.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

c.            Exhibit

Exhibit 99.1 Supplemental information to Press Release of February 21, 2008, relating to fourth quarter 2007 results.

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:	February 22, 2008	HOME PROPERTIES, INC.
		(Registrant)
		By:	/s/ David P. Gardner
			David P. Gardner
			Chief Financial Officer
			Executive Vice President and

Page 2

EX-99.1

Exhibit 99.1

HOME PROPERTIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

FOURTH QUARTER 2007

TABLE OF CONTENTS

	4Q 2007 Supplemental Reports	Page
1.	Earnings Release	1-8
2.	Owned Community Results, Quarterly and Year-to-Date	9-14
3.	Physical Occupancy Comparison by Region	15
4.	Net Operating Results	16
5.	Resident Statistics	17
6.	Net Operating Income Detail and Seasonality Factor for NAV Calculation	18
7.	Operating Expense Detail	19
8.	Discontinued Operations	20
9.	Summary of Recent Acquisitions	21
10.	Summary of Recent Sales	22
11.	Breakdown of Owned Units by Market	23
12.	Debt Summary Schedule	24-25
13.	Recurring Capital Expenditure and Adjusted NOI Summary	26-28
14.	Development Communities	29
15.	2008 Earnings Guidance	30-33

FOURTH QUARTER 2007												4Q '07 versus 4Q '06
												% Growth
	# of		Date	4Q '07		4Q '07			Year Ago			Rental			Total			Total			Total			4Q '07
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates			Revenue			Expense			NOI			% Co. NOI
Baltimore Region
Bonnie Ridge		960	7/1/1999	$	1,029		95.6	%		91.4	%		-1.7	%		4.8	%		10.5	%		1.4	%
Canterbury Apartments		618	7/16/1999	$	925		93.2	%		95.5	%		4.0	%		-0.1	%		-2.7	%		1.5	%
Country Village		344	4/30/1998	$	878		95.0	%		91.5	%		4.0	%		5.3	%		4.0	%		6.3	%
Dunfield Townhomes		312	11/1/2007	$	1,029		94.3	%		n/a			n/a			n/a			n/a			n/a
Falcon Crest		396	7/16/1999	$	971		91.1	%		92.3	%		2.2	%		-4.4	%		10.8	%		-11.9	%
Fox Hall Apartments		720	3/29/2007	$	846		96.0	%		n/a			n/a			n/a			n/a			n/a
Gateway Village		132	7/16/1999	$	1,261		97.2	%		96.9	%		3.3	%		4.3	%		0.8	%		6.1	%
Heritage Woods		164	10/4/2006	$	985		96.8	%		n/a			n/a			n/a			n/a			n/a
Mill Towne Village Apts		384	5/31/2001	$	853		93.3	%		95.1	%		3.8	%		0.1	%		12.7	%		-7.5	%
Morningside Heights		1,050	4/30/1998	$	860		93.3	%		94.4	%		2.5	%		0.1	%		8.1	%		-4.0	%
Owings Run		504	7/16/1999	$	1,155		94.3	%		93.3	%		3.8	%		4.6	%		3.8	%		5.1	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,116		95.1	%		93.3	%		7.6	%		8.0	%		23.3	%		-0.8	%
Selford Townhomes		102	7/16/1999	$	1,286		94.8	%		97.7	%		3.3	%		0.4	%		8.4	%		-3.0	%
The Coves at Chesapeake		469	11/20/2006	$	1,171		92.8	%		n/a			n/a			n/a			n/a			n/a
Timbercroft Townhomes		284	7/16/1999	$	836		98.1	%		98.1	%		3.8	%		6.5	%		-13.7	%		21.0	%
Top Field		156	10/4/2006	$	1,114		97.6	%		n/a			n/a			n/a			n/a			n/a
Village Square Townhomes		370	7/16/1999	$	1,125		96.3	%		95.4	%		2.3	%		3.0	%		8.0	%		0.9	%
Woodholme Manor		177	3/31/2001	$	827		95.9	%		96.3	%		1.8	%		-0.3	%		9.2	%		-7.5	%
Total Baltimore Region		7,346		$	978		94.6	%		93.9	%		2.4	%		2.3	%		6.4	%		0.0	%		18.2	%
Boston Region
Gardencrest		696	6/28/2002	$	1,437		96.1	%		95.0	%		2.5	%		4.6	%		6.2	%		3.5	%
Highland House		172	5/31/2006	$	1,134		95.5	%		95.4	%		3.5	%		4.8	%		3.5	%		5.9	%
Liberty Place		107	6/6/2006	$	1,415		92.5	%		94.9	%		2.6	%		-2.4	%		2.5	%		-5.8	%
Stone Ends		280	2/12/2003	$	1,219		95.2	%		94.6	%		-0.7	%		1.0	%		11.3	%		-5.1	%
The Heights at Marlborough		348	9/7/2006	$	1,168		95.5	%		92.4	%		1.4	%		7.3	%		11.4	%		4.2	%
The Meadows at Marlborough		264	9/7/2006	$	1,140		96.9	%		90.2	%		-0.1	%		7.7	%		13.2	%		3.8	%
The Townhomes of Beverly		204	2/15/2007	$	1,434		93.4	%		n/a			n/a			n/a			n/a			n/a
The Village at Marshfield		276	3/17/2004	$	1,150		95.9	%		95.3	%		1.1	%		4.2	%		-5.3	%		10.1	%
Westwoods		35	4/30/2007	$	1,223		90.3	%		n/a			n/a			n/a			n/a			n/a
Total Boston Region		2,382		$	1,280		95.4	%		94.1	%		1.6	%		4.5	%		6.7	%		2.9	%		7.1	%
Chicago Region
Blackhawk		371	10/20/2000	$	876		96.8	%		94.0	%		2.7	%		8.1	%		-20.5	%		47.1	%
Courtyards Village		224	8/29/2001	$	811		98.5	%		97.4	%		4.3	%		6.3	%		-16.2	%		34.7	%
Cypress Place		192	12/27/2000	$	934		96.9	%		97.6	%		3.0	%		4.1	%		-15.5	%		28.1	%
The Colony		783	9/1/1999	$	880		97.9	%		96.8	%		6.3	%		9.8	%		-40.0	%		62.3	%
The New Colonies		672	6/23/1998	$	722		94.8	%		95.6	%		3.0	%		3.1	%		3.1	%		3.0	%
Total Chicago Region		2,242		$	830		96.8	%		96.1	%		4.3	%		6.8	%		-20.3	%		37.6	%		4.9	%
Florida Region
The Hamptons		668	7/7/2004	$	1,043		93.3	%		94.7	%		2.8	%		0.1	%		17.1	%		-12.6	%
Vinings at Hampton Village		168	7/7/2004	$	1,140		94.4	%		92.8	%		2.8	%		4.0	%		11.3	%		-2.3	%
Total Florida Region		836		$	1,062		93.5	%		94.3	%		2.8	%		0.9	%		15.8	%		-10.5	%		1.8	%
Hudson Valley Region
Carriage Hill		140	7/17/1996	$	1,230		96.7	%		95.3	%		2.7	%		4.4	%		8.2	%		0.6	%
Lakeshore Villas		152	7/17/1996	$	1,055		92.6	%		92.6	%		1.7	%		4.5	%		-2.9	%		13.5	%
Patricia		100	7/7/1998	$	1,435		94.7	%		95.8	%		3.4	%		-0.8	%		3.9	%		-4.8	%
Sherwood Consolidation		224	10/11/2002	$	1,276		97.3	%		95.5	%		4.8	%		9.2	%		13.1	%		5.1	%
Sunset Gardens		217	7/17/1996	$	927		94.5	%		95.1	%		0.8	%		4.7	%		6.7	%		2.7	%
Total Hudson Valley Region		833		$	1,156		95.4	%		94.9	%		2.8	%		5.1	%		6.8	%		3.4	%		1.9	%

Page 9

FOURTH QUARTER 2007						4Q '07 versus 4Q '06
						% Growth
	# of	Date	4Q '07	4Q '07	Year Ago	Rental	Total	Total	Total	4Q '07
	Units	Acquired	Rent/Mo.	Occup.	Occup.	Rates	Revenue	Expense	NOI	% Co. NOI

Long Island, NY Region
Bayview / Colonial	160	11/1/2000	$	1,208	93.3	%	93.7	%	0.4	%	3.4	%	27.4	%	-17.3	%
Cambridge Village	82	3/1/2002	$	1,618	93.6	%	97.6	%	4.2	%	1.9	%	9.6	%	-4.3	%
Coventry Village	94	7/31/1998	$	1,390	94.5	%	97.3	%	2.8	%	1.0	%	3.8	%	-2.2	%
Devonshire Hills	297	7/16/2001	$	1,707	95.0	%	95.4	%	-1.4	%	-3.7	%	-2.5	%	-4.4	%
East Winds	96	11/1/2000	$	1,166	95.6	%	93.7	%	1.1	%	8.1	%	8.8	%	7.4	%
Hawthorne Court	434	4/4/2002	$	1,392	94.0	%	93.3	%	2.5	%	5.5	%	9.9	%	1.2	%
Heritage Square	80	4/4/2002	$	1,630	97.0	%	98.0	%	4.5	%	2.4	%	-0.4	%	4.9	%
Holiday Square	144	5/31/2002	$	1,132	96.7	%	96.7	%	3.0	%	4.7	%	-0.6	%	8.5	%
Lake Grove Apartments	368	2/3/1997	$	1,397	95.4	%	94.4	%	0.5	%	5.5	%	4.2	%	6.3	%
Maple Tree	84	11/1/2000	$	1,131	92.3	%	97.4	%	-2.6	%	-7.3	%	7.4	%	-20.2	%
Mid- Island Estates	232	7/1/1997	$	1,308	97.0	%	94.8	%	2.4	%	4.1	%	-2.9	%	10.4	%
Rider Terrace	24	11/1/2000	$	1,273	93.7	%	97.8	%	2.4	%	4.3	%	26.2	%	-10.7	%
Sayville Commons	342	7/15/2005	$	1,488	97.1	%	98.0	%	4.1	%	4.0	%	2.1	%	5.4	%
South Bay Manor	61	9/11/2000	$	1,608	93.8	%	88.4	%	5.2	%	13.7	%	21.6	%	7.3	%
Southern Meadows	452	6/29/2001	$	1,338	97.4	%	95.3	%	-1.0	%	3.1	%	8.5	%	-0.8	%
Stratford Greens	359	3/1/2002	$	1,428	96.4	%	97.2	%	3.1	%	5.6	%	15.2	%	-0.7	%
Terry Apartments	65	11/1/2000	$	1,141	83.6	%	92.8	%	-1.9	%	-10.7	%	10.3	%	-34.1	%
Westwood Village Apts	242	3/1/2002	$	2,260	94.5	%	95.3	%	4.0	%	6.6	%	6.7	%	6.6	%
Woodmont Village Apts	96	3/1/2002	$	1,330	94.5	%	96.2	%	2.3	%	3.4	%	6.7	%	1.6	%
Yorkshire Village Apts	40	3/1/2002	$	1,671	96.9	%	99.2	%	5.4	%	7.3	%	11.7	%	3.1	%
Total Long Island Region	3,752		$	1,454	95.3	%	95.5	%	1.8	%	3.5	%	7.0	%	0.9	%	12.7	%
Maine Region
Liberty Commons	120	8/30/2006	$	1,161	95.5	%	97.5	%	3.8	%	2.6	%	0.7	%	3.7	%
Mill Co. Gardens	95	7/7/1998	$	773	96.3	%	94.1	%	1.0	%	3.5	%	14.3	%	-5.8	%
Redbank Village	500	7/7/1998	$	827	95.9	%	92.9	%	2.4	%	7.1	%	4.1	%	9.4	%
Total Maine Region	715		$	876	95.9	%	94.1	%	2.6	%	5.7	%	4.8	%	6.2	%	1.5	%
New Jersey Region
Barrington Gardens	148	3/1/2005	$	1,006	93.9	%	98.2	%	13.4	%	7.8	%	33.0	%	-8.5	%
Chatham Hill Apartments	308	1/30/2004	$	1,674	96.3	%	95.4	%	5.2	%	7.7	%	-2.5	%	13.8	%
East Hill Gardens	33	7/7/1998	$	1,511	91.4	%	96.9	%	2.7	%	-2.3	%	5.3	%	-6.4	%
Hackensack Gardens	198	3/1/2005	$	974	94.0	%	96.9	%	9.9	%	9.8	%	29.0	%	-13.1	%
Jacob Ford Village	270	2/15/2007	$	1,064	95.1	%	n/a		n/a		n/a		n/a		n/a
Lakeview	106	7/7/1998	$	1,336	96.3	%	96.5	%	5.0	%	5.2	%	-0.1	%	9.5	%
Northwood Apartments	134	1/30/2004	$	1,286	94.3	%	93.4	%	5.2	%	7.6	%	15.2	%	-1.0	%
Oak Manor	77	7/7/1998	$	1,779	90.7	%	99.3	%	3.1	%	-0.6	%	6.1	%	-4.3	%
Pleasant View	1,142	7/7/1998	$	1,143	94.1	%	94.3	%	5.4	%	7.7	%	5.8	%	9.2	%
Pleasure Bay	270	7/7/1998	$	1,087	91.1	%	94.4	%	2.2	%	-5.2	%	18.0	%	-23.5	%
Regency Club	372	9/24/2004	$	1,118	96.8	%	91.4	%	0.5	%	10.3	%	-0.2	%	21.3	%
Royal Gardens Apartments	550	5/28/1997	$	1,212	95.5	%	90.6	%	4.8	%	13.2	%	2.4	%	23.8	%
Wayne Village	275	7/7/1998	$	1,366	97.1	%	96.3	%	4.8	%	7.4	%	0.3	%	12.5	%
Windsor Realty	67	7/7/1998	$	1,178	97.0	%	93.2	%	3.2	%	12.8	%	-26.1	%	47.3	%
Total New Jersey Region	3,950		$	1,210	94.9	%	94.2	%	4.8	%	7.5	%	5.8	%	8.9	%	11.0	%
Philadelphia Region
Beechwood Gardens	160	7/7/1998	$	826	95.9	%	96.5	%	-0.8	%	0.3	%	0.3	%	0.4	%
Castle Club	158	3/15/2000	$	931	90.0	%	94.9	%	-0.2	%	-5.0	%	2.9	%	-12.5	%
Chesterfield	247	9/23/1997	$	894	96.6	%	96.6	%	-1.7	%	-1.8	%	19.3	%	-17.7	%
Curren Terrace	318	9/23/1997	$	920	91.7	%	96.0	%	1.2	%	-3.6	%	4.5	%	-10.6	%
Glen Brook	174	7/28/1999	$	814	90.6	%	92.3	%	-0.3	%	-6.7	%	6.7	%	-23.6	%
Glen Manor	174	9/23/1997	$	800	96.5	%	95.7	%	4.4	%	5.0	%	5.7	%	4.2	%
Golf Club	399	3/15/2000	$	1,027	94.8	%	92.4	%	1.2	%	6.1	%	1.7	%	9.4	%
Hill Brook Place	274	7/28/1999	$	891	89.7	%	94.8	%	0.9	%	-5.8	%	10.7	%	-23.2	%
Home Properties of Bryn Mawr	316	3/15/2000	$	1,041	93.6	%	94.8	%	-0.9	%	0.5	%	-0.2	%	1.1	%
Home Properties of Devon	631	3/15/2000	$	1,098	94.2	%	93.5	%	1.0	%	1.8	%	7.0	%	-1.8	%
Home Properties of Newark	432	7/16/1999	$	861	94.0	%	94.6	%	1.7	%	5.9	%	8.6	%	3.7	%
New Orleans Park	442	7/28/1999	$	860	93.2	%	95.6	%	3.3	%	0.4	%	5.3	%	-4.6	%
Racquet Club	466	7/7/1998	$	1,022	96.0	%	93.9	%	-0.4	%	3.1	%	14.6	%	-4.8	%
Racquet Club South	103	5/27/1999	$	873	95.3	%	93.9	%	-0.1	%	2.5	%	0.9	%	4.2	%
Ridley Brook	244	7/28/1999	$	897	91.6	%	93.6	%	1.4	%	4.0	%	10.8	%	-3.7	%
Sherry Lake	298	7/23/1998	$	1,170	90.7	%	94.2	%	0.9	%	-2.6	%	6.4	%	-7.8	%
The Brooke at Peachtree Village	146	8/15/2005	$	1,091	95.5	%	97.4	%	5.3	%	6.2	%	4.1	%	7.6	%
The Landings	384	11/25/1996	$	975	94.9	%	96.7	%	2.8	%	1.8	%	-6.8	%	8.9	%
Trexler Park	250	3/15/2000	$	1,037	91.2	%	91.7	%	-0.7	%	-3.4	%	3.1	%	-8.4	%
Trexler Park West	168	Under Construction	$	1,261	80.6	%	n/a		n/a		n/a		n/a		n/a
Valley View	177	9/23/1997	$	825	91.1	%	88.7	%	-1.7	%	5.6	%	5.8	%	5.3	%
Village Square	128	9/23/1997	$	937	93.8	%	97.7	%	2.3	%	-1.9	%	12.6	%	-12.0	%
William Henry	363	3/15/2000	$	1,102	95.0	%	94.7	%	3.1	%	7.4	%	4.3	%	9.8	%
Total Philadelphia Region	6,452		$	970	93.6	%	94.4	%	1.1	%	1.3	%	5.8	%	-2.4	%	14.4	%

Page 10

FOURTH QUARTER 2007						4Q '07 versus 4Q '06
						% Growth
	# of	Date	4Q '07	4Q '07	Year Ago	Rental	Total	Total	Total	4Q '07
	Units	Acquired	Rent/Mo.	Occup.	Occup.	Rates	Revenue	Expense	NOI	% Co. NOI

Washington DC Region
Braddock Lee	255	3/16/1998	$	1,247	97.1	%	98.0	%	3.5	%	4.6	%	7.1	%	2.9	%
Cider Mill	864	9/27/2002	$	1,074	95.1	%	92.3	%	1.3	%	5.0	%	2.1	%	7.3	%
Cinnamon Run	511	12/28/2005	$	1,160	97.1	%	96.8	%	4.8	%	6.7	%	7.0	%	6.5	%
East Meadow	150	8/1/2000	$	1,317	96.4	%	97.1	%	1.8	%	1.9	%	-1.0	%	3.7	%
Elmwood Terrace	504	6/30/2000	$	896	92.8	%	93.8	%	3.9	%	1.2	%	6.1	%	-3.1	%
Falkland Chase	450	9/10/2003	$	1,322	93.1	%	95.7	%	5.3	%	2.3	%	11.6	%	-2.7	%
Mount Vernon Square	1,387	12/27/2006	$	1,146	94.9	%	n/a		n/a		n/a		n/a		n/a
Orleans Village	851	11/16/2000	$	1,286	94.2	%	92.2	%	1.0	%	3.3	%	8.7	%	-0.1	%
Park Shirlington	294	3/16/1998	$	1,222	96.5	%	96.7	%	2.5	%	5.2	%	2.9	%	7.0	%
Peppertree Farm	880	12/28/2005	$	1,128	89.4	%	90.8	%	3.2	%	7.1	%	1.0	%	12.0	%
Seminary Hill	296	7/1/1999	$	1,212	90.6	%	90.9	%	1.4	%	3.0	%	2.5	%	3.6	%
Seminary Towers	540	7/1/1999	$	1,251	93.5	%	93.0	%	2.2	%	2.8	%	6.8	%	-0.4	%
Tamarron Apartments	132	7/16/1999	$	1,414	96.6	%	95.6	%	3.8	%	4.4	%	2.4	%	5.3	%
The Apts at Wellington Trace	240	3/2/2004	$	1,259	94.2	%	92.1	%	2.5	%	4.0	%	6.7	%	2.9	%
The Manor - MD	435	8/31/2001	$	1,140	92.2	%	96.4	%	1.4	%	-1.1	%	2.9	%	-4.0	%
The Manor - VA	198	2/19/1999	$	1,005	95.8	%	93.0	%	3.2	%	8.0	%	11.1	%	5.6	%
The Sycamores	185	12/16/2002	$	1,345	97.8	%	95.4	%	1.1	%	3.9	%	8.6	%	1.6	%
Virginia Village	344	5/31/2001	$	1,220	93.6	%	95.4	%	0.7	%	0.7	%	8.6	%	-5.4	%
West Springfield	244	11/18/2002	$	1,407	94.6	%	94.4	%	3.6	%	4.0	%	8.8	%	1.8	%
Woodleaf Apartments	228	3/19/2004	$	1,114	95.5	%	93.3	%	2.8	%	4.2	%	-4.0	%	9.5	%
Total Washington DC Region	8,988		$	1,180	94.1	%	93.8	%	2.5	%	3.8	%	5.2	%	2.8	%	26.5	%
TOTAL OWNED PORTFOLIO	37,496		$	1,113	94.6	%	n/a		n/a		n/a		n/a		n/a		100.0	%
TOTAL CORE PORTFOLIO	32,600		$	1,114	94.6	%	94.4	%	2.5	%	3.7	%	4.5	%	3.1	%

Page 11

December YTD												YTD '07 versus YTD '06
												% Growth
	# of		Date	YTD '07		YTD '07			Year Ago			Rental			Total			Total			Total			YTD '07
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates			Revenue			Expense			NOI			% Co. NOI
Baltimore Region
Bonnie Ridge		960	7/1/1999	$	1,032		93.8	%		92.9	%		2.3	%		7.0	%		4.6	%		8.6	%
Canterbury Apartments		618	7/16/1999	$	904		95.4	%		95.5	%		4.0	%		3.1	%		-0.8	%		5.6	%
Country Village		344	4/30/1998	$	859		95.3	%		93.0	%		2.6	%		6.7	%		3.7	%		9.2	%
Dunfield Townhomes		312	11/1/2007	$	1,029		94.3	%		n/a			n/a			n/a			n/a			n/a
Falcon Crest		396	7/16/1999	$	961		91.6	%		91.7	%		3.4	%		1.7	%		7.8	%		-1.7	%
Fox Hall Apartments		720	3/29/2007	$	827		95.1	%		n/a			n/a			n/a			n/a			n/a
Gateway Village		132	7/16/1999	$	1,238		96.7	%		93.3	%		2.7	%		7.0	%		-0.1	%		11.0	%
Heritage Woods		164	10/4/2006	$	951		97.2	%		n/a			n/a			n/a			n/a			n/a
Mill Towne Village Apts		384	5/31/2001	$	841		94.5	%		94.6	%		3.1	%		4.0	%		6.1	%		2.7	%
Morningside Heights		1,050	4/30/1998	$	852		94.2	%		94.4	%		2.7	%		4.1	%		3.9	%		4.3	%
Owings Run		504	7/16/1999	$	1,143		95.1	%		94.3	%		5.8	%		6.7	%		8.7	%		5.7	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,080		95.8	%		94.5	%		6.6	%		7.6	%		14.3	%		3.4	%
Selford Townhomes		102	7/16/1999	$	1,267		95.5	%		95.3	%		3.1	%		3.4	%		6.6	%		2.0	%
The Coves at Chesapeake		469	11/20/2006	$	1,153		92.0	%		n/a			n/a			n/a			n/a			n/a
Timbercroft Townhomes		284	7/16/1999	$	823		98.9	%		98.9	%		3.3	%		3.6	%		-2.5	%		7.3	%
Top Field		156	10/4/2006	$	1,083		96.9	%		n/a			n/a			n/a			n/a			n/a
Village Square Townhomes		370	7/16/1999	$	1,113		95.9	%		96.0	%		2.5	%		3.3	%		5.7	%		2.2	%
Woodholme Manor		177	3/31/2001	$	818		95.1	%		94.7	%		3.8	%		3.5	%		3.7	%		3.3	%
Total Baltimore Region		7,346		$	980		94.6	%		94.3	%		3.4	%		4.9	%		4.5	%		5.1	%		17.4	%
Boston Region
Gardencrest		696	6/28/2002	$	1,419		95.9	%		96.2	%		2.9	%		2.5	%		-0.7	%		5.0	%
Highland House		172	5/31/2006	$	1,118		95.7	%		n/a			n/a			n/a			n/a			n/a
Liberty Place		107	6/6/2006	$	1,397		93.4	%		n/a			n/a			n/a			n/a			n/a
Stone Ends		280	2/12/2003	$	1,228		95.3	%		96.4	%		1.3	%		-0.9	%		1.2	%		-2.2	%
The Heights at Marlborough		348	9/7/2006	$	1,175		94.9	%		n/a			n/a			n/a			n/a			n/a
The Meadows at Marlborough		264	9/7/2006	$	1,144		94.6	%		n/a			n/a			n/a			n/a			n/a
The Townhomes of Beverly		204	2/15/2007	$	1,423		93.4	%		n/a			n/a			n/a			n/a			n/a
The Village at Marshfield		276	3/17/2004	$	1,140		95.9	%		95.5	%		1.1	%		2.7	%		-1.1	%		5.0	%
Westwoods		35	4/30/2007	$	1,189		92.8	%		n/a			n/a			n/a			n/a			n/a
Total Boston Region		2,382		$	1,259		95.4	%		96.1	%		2.2	%		1.8	%		-0.4	%		3.4	%		7.1	%
Chicago Region
Blackhawk		371	10/20/2000	$	862		96.2	%		93.6	%		1.9	%		7.5	%		-4.8	%		24.6	%
Courtyards Village		224	8/29/2001	$	796		97.8	%		96.7	%		3.2	%		7.6	%		-4.5	%		22.3	%
Cypress Place		192	12/27/2000	$	918		97.9	%		96.4	%		1.5	%		3.9	%		-1.8	%		11.0	%
The Colony		783	9/1/1999	$	854		97.8	%		96.4	%		4.6	%		7.1	%		-7.1	%		22.4	%
The New Colonies		672	6/23/1998	$	711		95.8	%		94.5	%		1.4	%		5.1	%		-1.1	%		11.1	%
Total Chicago Region		2,242		$	812		97.0	%		95.4	%		2.9	%		6.4	%		-4.4	%		18.4	%		4.2	%
Florida Region
The Hamptons		668	7/7/2004	$	1,035		95.0	%		95.4	%		5.8	%		5.8	%		4.9	%		6.7	%
Vinings at Hampton Village		168	7/7/2004	$	1,129		95.7	%		95.1	%		6.5	%		8.1	%		8.1	%		8.2	%
Total Florida Region		836		$	1,054		95.1	%		95.3	%		5.9	%		6.3	%		5.6	%		7.0	%		1.9	%
Hudson Valley Region
Carriage Hill		140	7/17/1996	$	1,225		95.7	%		95.1	%		2.4	%		2.6	%		7.7	%		-2.3	%
Lakeshore Villas		152	7/17/1996	$	1,042		95.6	%		92.1	%		-1.3	%		3.5	%		-1.3	%		8.7	%
Patricia		100	7/7/1998	$	1,411		97.3	%		94.7	%		2.5	%		5.7	%		-1.6	%		12.2	%
Sherwood Consolidation		224	10/11/2002	$	1,241		97.0	%		95.8	%		4.3	%		6.2	%		4.4	%		8.3	%
Sunset Gardens		217	7/17/1996	$	911		97.0	%		95.0	%		-1.6	%		3.3	%		0.2	%		6.2	%
Total Hudson Valley Region		833		$	1,136		96.6	%		94.7	%		1.5	%		4.4	%		2.3	%		6.6	%		2.0	%

Page 12

December YTD						YTD '07 versus YTD '06
						% Growth
	# of	Date	YTD '07	YTD '07	Year Ago	Rental	Total	Total	Total	YTD '07
	Units	Acquired	Rent/Mo.	Occup.	Occup.	Rates	Revenue	Expense	NOI	% Co. NOI

Long Island, NY Region
Bayview / Colonial	160	11/1/2000	$	1,202	94.5	%	94.9	%	1.3	%	1.8	%	8.5	%	-3.7	%
Cambridge Village	82	3/1/2002	$	1,604	95.6	%	96.3	%	4.4	%	3.6	%	1.3	%	5.7	%
Coventry Village	94	7/31/1998	$	1,382	95.1	%	96.1	%	1.8	%	1.7	%	4.1	%	-0.9	%
Devonshire Hills	297	7/16/2001	$	1,713	95.7	%	95.5	%	-0.4	%	-4.2	%	-5.9	%	-3.3	%
East Winds	96	11/1/2000	$	1,171	93.8	%	95.6	%	2.3	%	0.0	%	7.5	%	-6.0	%
Hawthorne Court	434	4/4/2002	$	1,374	94.2	%	93.9	%	1.0	%	2.3	%	7.9	%	-2.6	%
Heritage Square	80	4/4/2002	$	1,601	96.6	%	97.8	%	4.7	%	2.8	%	4.8	%	1.0	%
Holiday Square	144	5/31/2002	$	1,131	95.8	%	96.0	%	4.0	%	4.1	%	-0.9	%	7.7	%
Lake Grove Apartments	368	2/3/1997	$	1,384	94.9	%	94.5	%	-0.5	%	2.0	%	4.3	%	0.6	%
Maple Tree	84	11/1/2000	$	1,151	92.1	%	95.8	%	-0.2	%	-5.1	%	10.3	%	-17.0	%
Mid- Island Estates	232	7/1/1997	$	1,299	95.8	%	93.6	%	3.3	%	5.4	%	2.7	%	7.6	%
Rider Terrace	24	11/1/2000	$	1,253	96.1	%	93.1	%	0.6	%	2.0	%	8.8	%	-3.1	%
Sayville Commons	342	7/15/2005	$	1,464	97.5	%	98.4	%	5.0	%	4.2	%	5.9	%	3.0	%
South Bay Manor	61	9/11/2000	$	1,573	95.2	%	90.9	%	2.4	%	6.2	%	10.8	%	2.7	%
Southern Meadows	452	6/29/2001	$	1,337	95.1	%	95.7	%	-1.2	%	-1.4	%	10.4	%	-9.2	%
Stratford Greens	359	3/1/2002	$	1,414	95.6	%	96.0	%	1.1	%	2.8	%	6.7	%	0.1	%
Terry Apartments	65	11/1/2000	$	1,161	87.5	%	95.6	%	0.9	%	-8.3	%	-0.2	%	-15.3	%
Westwood Village Apts	242	3/1/2002	$	2,227	95.9	%	95.6	%	3.4	%	6.3	%	9.2	%	4.3	%
Woodmont Village Apts	96	3/1/2002	$	1,311	94.6	%	95.6	%	2.2	%	2.6	%	-2.3	%	5.6	%
Yorkshire Village Apts	40	3/1/2002	$	1,630	96.6	%	97.2	%	4.5	%	4.6	%	7.1	%	2.3	%
Total Long Island Region	3,752		$	1,443	95.3	%	95.5	%	1.6	%	1.8	%	5.4	%	-0.8	%	12.8	%
Maine Region
Liberty Commons	120	8/30/2006	$	1,139	96.7	%	47.3	%	n/a		n/a		n/a		n/a
Mill Co. Gardens	95	7/7/1998	$	773	95.9	%	95.0	%	2.0	%	2.7	%	10.0	%	-3.7	%
Redbank Village	500	7/7/1998	$	822	95.8	%	94.4	%	2.1	%	5.2	%	12.6	%	0.5	%
Total Maine Region	715		$	869	96.0	%	94.5	%	2.1	%	4.8	%	12.1	%	-0.1	%	1.5	%
New Jersey Region
Barrington Gardens	148	3/1/2005	$	957	94.6	%	97.1	%	12.1	%	11.9	%	13.4	%	10.7	%
Chatham Hill Apartments	308	1/30/2004	$	1,639	94.1	%	95.8	%	4.1	%	4.0	%	7.7	%	2.4	%
East Hill Gardens	33	7/7/1998	$	1,498	93.7	%	98.0	%	4.0	%	0.3	%	15.1	%	-6.9	%
Hackensack Gardens	198	3/1/2005	$	945	96.7	%	97.8	%	9.2	%	9.5	%	11.0	%	7.8	%
Jacob Ford Village	270	2/15/2007	$	1,025	91.8	%	n/a		n/a		n/a		n/a		n/a
Lakeview	106	7/7/1998	$	1,312	96.2	%	97.5	%	5.2	%	4.2	%	0.2	%	7.0	%
Northwood Apartments	134	1/30/2004	$	1,257	94.4	%	94.4	%	5.3	%	5.3	%	11.7	%	-1.0	%
Oak Manor	77	7/7/1998	$	1,749	95.4	%	98.1	%	2.1	%	2.0	%	3.3	%	1.3	%
Pleasant View	1,142	7/7/1998	$	1,125	94.1	%	94.8	%	6.1	%	6.7	%	-0.1	%	12.0	%
Pleasure Bay	270	7/7/1998	$	1,078	93.2	%	95.0	%	2.3	%	3.8	%	7.9	%	0.3	%
Regency Club	372	9/24/2004	$	1,119	95.6	%	93.1	%	1.3	%	6.4	%	3.8	%	8.7	%
Royal Gardens Apartments	550	5/28/1997	$	1,192	93.7	%	93.7	%	5.7	%	7.1	%	-0.9	%	13.8	%
Wayne Village	275	7/7/1998	$	1,339	95.9	%	97.3	%	4.5	%	3.5	%	3.0	%	3.9	%
Windsor Realty	67	7/7/1998	$	1,153	95.5	%	94.4	%	1.5	%	6.8	%	-3.9	%	15.5	%
Total New Jersey Region	3,950		$	1,201	94.5	%	95.2	%	5.0	%	5.9	%	3.4	%	7.8	%	11.2	%
Philadelphia Region
Beechwood Gardens	160	7/7/1998	$	830	95.2	%	95.4	%	0.1	%	2.9	%	2.4	%	3.5	%
Castle Club	158	3/15/2000	$	929	92.9	%	94.3	%	-0.2	%	1.6	%	1.9	%	1.4	%
Chesterfield	247	9/23/1997	$	903	94.7	%	96.9	%	0.2	%	2.2	%	8.7	%	-3.2	%
Curren Terrace	318	9/23/1997	$	914	94.2	%	94.8	%	0.7	%	4.2	%	3.7	%	4.6	%
Glen Brook	174	7/28/1999	$	817	93.1	%	93.2	%	0.5	%	4.2	%	-7.7	%	22.0	%
Glen Manor	174	9/23/1997	$	788	95.6	%	93.5	%	3.3	%	7.6	%	2.6	%	13.7	%
Golf Club	399	3/15/2000	$	1,015	94.6	%	93.2	%	0.5	%	5.5	%	2.3	%	7.9	%
Hill Brook Place	274	7/28/1999	$	881	93.6	%	95.0	%	0.7	%	2.3	%	2.2	%	2.3	%
Home Properties of Bryn Mawr	316	3/15/2000	$	1,037	93.0	%	92.6	%	-1.3	%	2.0	%	-1.3	%	4.8	%
Home Properties of Devon	631	3/15/2000	$	1,088	95.4	%	93.1	%	0.0	%	5.2	%	1.4	%	7.9	%
Home Properties of Newark	432	7/16/1999	$	858	94.0	%	94.9	%	0.7	%	1.6	%	6.1	%	-1.8	%
New Orleans Park	442	7/28/1999	$	849	94.1	%	95.7	%	3.9	%	6.7	%	3.4	%	10.1	%
Racquet Club	466	7/7/1998	$	1,014	95.8	%	94.4	%	-0.8	%	5.5	%	5.4	%	5.6	%
Racquet Club South	103	5/27/1999	$	867	95.4	%	95.0	%	-1.1	%	5.0	%	1.0	%	8.9	%
Ridley Brook	244	7/28/1999	$	888	94.4	%	95.7	%	1.3	%	4.6	%	5.2	%	4.1	%
Sherry Lake	298	7/23/1998	$	1,164	91.6	%	93.8	%	0.4	%	0.5	%	3.4	%	-1.2	%
The Brooke at Peachtree Village	146	8/15/2005	$	1,065	97.1	%	97.3	%	5.0	%	5.7	%	5.7	%	5.7	%
The Landings	384	11/25/1996	$	964	95.7	%	95.1	%	0.4	%	3.0	%	-3.3	%	7.9	%
Trexler Park	250	3/15/2000	$	1,038	91.6	%	90.6	%	-0.8	%	-2.0	%	-2.0	%	-2.0	%
Trexler Park West	168	Under Construction	$	1,255	84.5	%	n/a		n/a		n/a		n/a		n/a
Valley View	177	9/23/1997	$	826	88.6	%	90.0	%	-0.8	%	7.1	%	7.9	%	6.0	%
Village Square	128	9/23/1997	$	933	93.5	%	94.9	%	2.6	%	1.6	%	1.7	%	1.5	%
William Henry	363	3/15/2000	$	1,081	94.6	%	92.4	%	-1.3	%	5.6	%	6.5	%	4.9	%
Total Philadelphia Region	6,452		$	962	94.2	%	94.0	%	0.4	%	3.8	%	2.6	%	4.9	%	15.0	%

Page 13

December YTD						YTD '07 versus YTD '06
						% Growth
	# of	Date	YTD '07	YTD '07	Year Ago	Rental	Total	Total	Total	YTD '07
	Units	Acquired	Rent/Mo.	Occup.	Occup.	Rates	Revenue	Expense	NOI	% Co. NOI

Washington DC Region
Braddock Lee	255	3/16/1998	$	1,231	96.0	%	96.9	%	2.6	%	5.4	%	4.5	%	6.0	%
Cider Mill	864	9/27/2002	$	1,065	95.1	%	94.3	%	0.9	%	3.8	%	-0.8	%	7.3	%
Cinnamon Run	511	12/28/2005	$	1,143	96.5	%	95.9	%	2.8	%	4.4	%	-1.4	%	7.1	%
East Meadow	150	8/1/2000	$	1,315	95.3	%	96.1	%	4.2	%	5.1	%	-2.9	%	10.5	%
Elmwood Terrace	504	6/30/2000	$	880	92.9	%	93.3	%	3.7	%	1.0	%	2.3	%	-0.2	%
Falkland Chase	450	9/10/2003	$	1,294	94.0	%	95.5	%	6.1	%	3.6	%	5.2	%	2.8	%
Mount Vernon Square	1,387	12/27/2006	$	1,131	94.9	%	n/a		n/a		n/a		n/a		n/a
Orleans Village	851	11/16/2000	$	1,277	92.8	%	93.9	%	1.9	%	3.4	%	0.4	%	5.5	%
Park Shirlington	294	3/16/1998	$	1,206	96.2	%	96.2	%	1.7	%	4.8	%	-0.9	%	9.0	%
Peppertree Farm	880	12/28/2005	$	1,108	90.4	%	89.1	%	1.1	%	5.3	%	-1.9	%	10.6	%
Seminary Hill	296	7/1/1999	$	1,200	92.7	%	93.8	%	1.2	%	3.5	%	-1.8	%	8.9	%
Seminary Towers	540	7/1/1999	$	1,242	93.8	%	94.6	%	2.7	%	4.4	%	4.2	%	4.6	%
Tamarron Apartments	132	7/16/1999	$	1,397	95.4	%	95.8	%	5.4	%	4.5	%	4.9	%	4.3	%
The Apts at Wellington Trace	240	3/2/2004	$	1,247	93.7	%	96.2	%	3.8	%	0.0	%	8.1	%	-3.4	%
The Manor - MD	435	8/31/2001	$	1,125	93.3	%	94.9	%	0.2	%	1.2	%	5.0	%	-1.3	%
The Manor - VA	198	2/19/1999	$	989	93.8	%	95.1	%	0.9	%	2.6	%	5.4	%	0.5	%
The Sycamores	185	12/16/2002	$	1,353	96.3	%	96.5	%	5.3	%	7.0	%	8.7	%	6.2	%
Virginia Village	344	5/31/2001	$	1,218	94.9	%	95.6	%	0.7	%	4.1	%	2.4	%	5.5	%
West Springfield	244	11/18/2002	$	1,388	96.3	%	95.1	%	3.9	%	4.3	%	5.7	%	3.7	%
Woodleaf Apartments	228	3/19/2004	$	1,096	94.6	%	94.1	%	4.4	%	4.8	%	7.7	%	3.2	%
Total Washington DC Region	8,988		$	1,166	94.1	%	94.3	%	2.4	%	3.8	%	1.8	%	5.2	%	26.9	%
TOTAL OWNED PORTFOLIO	37,496		$	1,101	94.7	%	n/a		n/a		n/a		n/a		n/a		100.0	%
TOTAL CORE PORTFOLIO	32,600		$	1,101	94.8	%	94.7	%	2.5	%	4.0	%	2.8	%	5.0	%

Page 14

Physical Occupancy Comparison By Region - Core Properties

Sequential Comparison
Fourth Quarter 2007 vs. Third Quarter 2007
Region	% Units			4Q '07			3Q '07			Variance
New Jersey, Long Island, Hudson Valley		25.4	%		95.2	%		95.3	%		-0.1	%
Washington		23.3	%		94.0	%		94.4	%		-0.4	%
Philadelphia		19.3	%		93.6	%		94.3	%		-0.7	%
Baltimore		16.9	%		94.5	%		94.7	%		-0.2	%
Chicago		6.9	%		96.9	%		96.5	%		0.4	%
Boston		3.8	%		95.9	%		96.9	%		-1.0	%
Florida		2.6	%		93.5	%		94.4	%		-0.9	%
Other		1.8	%		96.0	%		97.2	%		-1.2	%
Total Core		100.0	%		94.6	%		95.0	%		-0.4	%
Year over Year Comparison
Fourth Quarter 2007 vs. Fourth Quarter 2006
Region	% Units			4Q '07			4Q '06			Variance
New Jersey, Long Island, Hudson Valley		25.4	%		95.2	%		94.9	%		0.3	%
Washington		23.3	%		94.0	%		93.8	%		0.2	%
Philadelphia		19.3	%		93.6	%		94.4	%		-0.8	%
Baltimore		16.9	%		94.5	%		94.0	%		0.5	%
Chicago		6.9	%		96.9	%		96.1	%		0.8	%
Boston		3.8	%		95.9	%		95.0	%		0.9	%
Florida		2.6	%		93.5	%		94.3	%		-0.8	%
Other		1.8	%		96.0	%		93.1	%		2.9	%
Total Core		100.0	%		94.6	%		94.4	%		0.2	%
December vs. Quarter Comparison
Region	% Units			Dec '07			4Q '07			Variance
New Jersey, Long Island, Hudson Valley		25.4	%		94.9	%		95.2	%		-0.3	%
Washington		23.3	%		94.1	%		94.0	%		0.1	%
Philadelphia		19.3	%		93.5	%		93.6	%		-0.1	%
Baltimore		16.9	%		94.3	%		94.5	%		-0.2	%
Chicago		6.9	%		96.9	%		96.9	%		0.0	%
Boston		3.8	%		94.8	%		95.9	%		-1.1	%
Florida		2.6	%		93.1	%		93.5	%		-0.4	%
Other		1.8	%		94.7	%		96.0	%		-1.3	%
Total Core		100.0	%		94.5	%		94.6	%		-0.1	%

Page 15

Net Operating Results – Core Properties

Sequential Results
Fourth Quarter 2007 vs. Third Quarter 2007
Region	% Units			Revenues			Expenses			NOI
New Jersey, Long Island, Hudson Valley		25.4	%		1.6	%		16.9	%		-8.2	%
Washington		23.3	%		1.4	%		8.3	%		-2.9	%
Philadelphia		19.3	%		1.7	%		11.8	%		-5.8	%
Baltimore		16.9	%		1.5	%		3.8	%		0.2	%
Chicago		6.9	%		4.6	%		-17.3	%		26.8	%
Boston		3.8	%		-0.5	%		15.3	%		-9.0	%
Florida		2.6	%		-0.9	%		6.1	%		-7.0	%
Other		1.8	%		-0.9	%		5.1	%		-4.9	%
Total Core		100.0	%		1.5	%		9.4	%		-3.6	%
Year Over Year Results
Fourth Quarter 2007 vs. Fourth Quarter 2006
Region	% Units			Revenues			Expenses			NOI
New Jersey, Long Island, Hudson Valley		25.4	%		5.3	%		6.5	%		4.3	%
Washington		23.3	%		3.8	%		5.2	%		2.8	%
Philadelphia		19.3	%		1.3	%		5.8	%		-2.4	%
Baltimore		16.9	%		2.3	%		6.4	%		0.0	%
Chicago		6.9	%		6.8	%		-20.3	%		37.6	%
Boston		3.8	%		3.8	%		5.1	%		2.9	%
Florida		2.6	%		0.9	%		15.8	%		-10.5	%
Other		1.8	%		6.6	%		5.8	%		7.1	%
Total Core		100.0	%		3.7	%		4.5	%		3.1	%

Page 16

Resident Statistics

Top Six Reasons for Moveouts - Owned Communities

	4Q '07			3Q '07			2Q '07			1Q '07			4Q '06			3Q '06			2Q '06			1Q '06			Year '07			Year '06			Year '05			Year '04
Eviction/skip		16.20	%		12.80	%		12.70	%		16.70	%		17.00	%		12.60	%		12.30	%		14.70	%		14.60	%		14.20	%		13.10	%		12.30	%
Employment related		16.00	%		17.40	%		15.70	%		15.20	%		14.60	%		15.70	%		15.70	%		16.40	%		16.10	%		15.60	%		15.60	%		15.50	%
Home purchase		13.70	%		14.90	%		16.60	%		16.70	%		18.60	%		19.10	%		18.70	%		17.60	%		15.50	%		18.50	%		19.40	%		19.50	%
Location convenience/
apartment size		13.00	%		14.10	%		13.90	%		13.80	%		12.70	%		13.60	%		11.70	%		11.50	%		13.70	%		12.40	%		12.80	%		12.30	%
Transfer w/in HP		10.50	%		6.10	%		8.10	%		8.60	%		8.10	%		7.80	%		8.20	%		8.80	%		8.30	%		8.20	%		9.10	%		9.50	%
Rent Level		7.40	%		7.40	%		8.60	%		8.60	%		8.40	%		7.20	%		8.70	%		9.10	%		8.00	%		8.40	%		9.20	%		9.60	%

Traffic - Core													Turnover - Core
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	4Q '07			Year '07			4Q '07			Year '07
	vs.			To			vs.			To
	4Q '06			Year '06			4Q '06			Year '06			4Q '07			4Q '06			Year '07			Year '06
Region
Baltimore		13	%		12	%		30	%		16	%		9	%		9	%		41	%		43	%
Boston		27	%		23	%		-20	%		13	%		5	%		8	%		37	%		37	%
Chicago		2	%		-1	%		18	%		-5	%		7	%		10	%		41	%		50	%
Florida		22	%		8	%		17	%		13	%		10	%		14	%		45	%		50	%
Hudson Valley		-24	%		-9	%		-51	%		-31	%		10	%		11	%		43	%		46	%
Long Island		-5	%		-8	%		-8	%		-7	%		7	%		9	%		36	%		37	%
Maine		4	%		2	%		-21	%		-2	%		10	%		10	%		43	%		45	%
New Jersey		5	%		11	%		0	%		12	%		7	%		8	%		39	%		35	%
Philadelphia		14	%		1	%		10	%		-5	%		10	%		11	%		46	%		48	%
Washington		11	%		4	%		29	%		5	%		10	%		10	%		41	%		42	%
Total Core		9	%		4	%		12	%		2	%		9	%		10	%		41	%		43	%

Bad Debt as % of Rent - Core
	4Q '07			4Q '06			Year '07			Year '06
		1.04	%		0.88	%		0.88	%		0.76	%

Page 17

Net Operating Income Detail - Core Properties

 ($ in thousands, except per unit data)

	4Q '07			4Q '06			Qtr			%			YTD '07			YTD '06			YTD			%
	Actual			Actual			Variance			Variance			Actual			Actual			Variance			Variance
Rent	$	101,950		$	99,460		$	2,490			2.5	%	$	404,594		$	395,140		$	9,454			2.4	%
Utility recovery		4,381			2,831			1,550			54.8	%		16,565			8,610			7,955			92.4	%
Rent including recoveries		106,331			102,291			4,040			3.9	%		421,159			403,750			17,409			4.3	%
Other income		4,263			4,384			(121	)		-2.8	%		17,559			17,919			(360	)		-2.0	%
Total income		110,594			106,675			3,919			3.7	%		438,718			421,669			17,049			4.0	%
Operating & maintenance		(47,464	)		(45,418	)		(2,046	)		-4.5	%		(183,738	)		(178,769	)		(4,969	)		-2.8	%
Net Core NOI	$	63,130		$	61,257		$	1,873			3.1	%	$	254,980		$	242,900		$	12,080			5.0	%
Physical Occupancy %		94.6	%		94.4	%		0.2	%					94.8	%		94.7	%		0.1	%
Weighted Avg Rent	$	1,114		$	1,086		$	27			2.5	%	$	1,101		$	1,075		$	26			2.5	%

Seasonality Factor for NAV Calculation

To annualize net operating income in order to calculate a net asset value, the seasonality factor to apply to the quarter's effective NOI run rate is 24.8%.

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

Page 18

Operating Expense Detail - Core Properties

($ in thousands)

	4Q '07		4Q '06		Qtr			%			YTD '07		YTD '06		YTD			%
	Actual		Actual		Variance			Variance			Actual		Actual		Variance			Variance
Electricity	$	1,834	$	1,624	$	(210	)		-12.9	%	$	7,417	$	7,130	$	(287	)		-4.0	%
Gas		5,805		6,087		282			4.6	%		19,862		20,205		343			1.7	%
Water & sewer		3,115		2,958		(157	)		-5.3	%		12,234		11,645		(589	)		-5.1	%
Repairs & maintenance		6,937		6,813		(124	)		-1.8	%		25,300		27,034		1,734			6.4	%
Personnel expense		9,957		8,907		(1,050	)		-11.8	%		40,342		37,228		(3,114	)		-8.4	%
Advertising		1,120		1,083		(37	)		-3.4	%		4,265		4,176		(89	)		-2.1	%
Legal & professional		379		250		(129	)		-51.6	%		1,362		1,224		(138	)		-11.3	%
Office & telephone		1,281		1,250		(31	)		-2.5	%		5,315		5,482		167			3.0	%
Property insurance		2,330		1,939		(391	)		-20.2	%		8,973		7,076		(1,897	)		-26.8	%
Real estate taxes		10,367		10,246		(121	)		-1.2	%		41,594		40,445		(1,149	)		-2.8	%
Snow		329		153		(176	)		-115.0	%		999		612		(387	)		-63.2	%
Trash		756		636		(120	)		-18.9	%		2,842		2,603		(239	)		-9.2	%
Property management G & A		3,254		3,472		218			6.3	%		13,233		13,909		676			4.9	%
Total Core	$	47,464	$	45,418	$	(2,046	)		-4.5	%	$	183,738	$	178,769	$	(4,969	)		-2.8	%

Page 19

Discontinued Operations

($ in thousands)

The operating results of discontinued operations are summarized as follows for the quarter and twelve months ended December 31, 2007 and 2006:

	4Q '07			4Q '06			YTD '07			YTD '06
Revenues:
Rental income	$	965		$	10,137		$	9,142		$	69,011
Property other income		74			1,841			621			7,396
Total revenues		1,039			11,978			9,763			76,407
Operating and maintenance		462			6,126			3,907			40,302
Interest expense		1,062			8,197			1,704			19,116
Depreciation and amortization		179			854			2,256			8,793
Total expenses		1,703			15,177			7,867			68,211
Income from discontinued operations
before minority interest		(664	)		(3,199	)		1,896			8,196
Minority interest in operating partnership		192			918			(542	)		(2,714	)
Income from discontinued operations	$	(472	)	$	(2,281	)	$	1,354		$	5,482

Page 20

Summary Of Recent Acquisitions

 ($ in millions, except per unit data)

						(1)						Wgtd. Avg.
			Purchase	# of		CAP			Purchase			Price Per
Community	Market	State	Date	Units		Rate			Price			Unit
2007 Acquisitions
The Townhomes of Beverly	Boston	MA	2/15/2007		204		5.8	%	$	36.4		$	178,598
Jacob Ford Village	New Jersey	NJ	2/15/2007		270		5.5	%	$	26.7		$	98,811
Fox Hall Apartments	Baltimore	MD	3/28/2007		720		5.7	%	$	62.2		$	86,436
Westwoods	Boston	MA	4/30/2007		35		6.6	%	$	4.0		$	114,143
Dunfield Townhomes	Baltimore	MD	11/1/2007		312		6.5	%	$	32.2	(2)	$	103,061
			Total YTD		1,541		5.9	%	$	161.5		$	104,800
						(1)						Wgtd. Avg.
			Purchase	# of		CAP			Purchase			Price Per
Community	Market	State	Date	Units		Rate			Price			Unit
2006 Acquisitions
Highland House	Boston	MA	5/31/2006		172		6.3	%	$	17.9		$	104,006
Liberty Place	Boston	MA	6/6/2006		107		6.6	%	$	14.9		$	139,178
The Heights at Marlborough	Boston	MA	9/7/2006		348		6.0	%	$	48.9		$	140,557
The Meadows at Marlborough	Boston	MA	9/7/2006		264		6.4	%	$	34.2		$	129,402
Heritage Woods	Baltimore	MD	10/4/2006		164		7.2	%	$	14.0		$	85,622
Topfield Apartments	Baltimore	MD	10/4/2006		156		6.7	%	$	18.4		$	117,891
The Coves at Chesapeake	Baltimore	MD	11/20/2006		469		5.7	%	$	67.0		$	142,949
Mount Vernon Square	NoVA/DC	VA	12/27/2006		1,387		7.4	%	$	144.8		$	104,375
			Total YTD		3,067		6.7	%	$	360.1		$	117,411
			Total 2007 and 2006 Acquisitions		4,608		6.4	%	$	521.6		$	113,194

(1)  CAP rate based on projected NOI at the time of acquisition after an allowance for a 3% management fee but before capital expenditures.

(2) Purchase Price is $2.4 million less than reported in acquisition press release due to GAAP fair market value adjustment for OP Units issued at a price above current market value.

Page 21

Summary Of Recent Sales

($ in millions, except per unit data)

							(1)				Wgtd. Avg.
			Sale	# of		CAP			Sales		Price Per
Community	Market	State	Date	Units		Rate			Price		Unit
2007 Sales
Brittany Place	NoVA/DC	MD	7/12/2007		591		5.7	%	$	74.1	$	125,381
Executive House	Philadelphia	PA	8/20/2007		100		6.4	%	$	9.6	$	96,000
Shakespeare Park	Baltimore	MD	9/18/2007		84		7.3	%	$	6.9	$	82,143
Cornwall Park	Hudson Valley	NY	12/12/2007		75		7.2	%	$	11.0	$	146,667
Fenland Field	Baltimore	MD	12/28/2007		234		5.7	%	$	27.9	$	119,231
			Total YTD		1,084		5.9	%	$	129.5	$	119,465
							(1)				Wgtd. Avg.
			Sale	# of		CAP			Sales		Price Per
Community	Market	State	Date	Units		Rate			Price		Unit
2006 Sales
Fairmount & Kensington	New Jersey	NJ	4/5/2006		92		4.0	%	$	9.2	$	99,478
Detroit Portfolio (19 properties)	Detroit	MI	6/29/2006		5,046		8.3	%	$	228.8	$	45,334
Upstate Portfolio (18 properties)	Upstate NY	NY	12/6/2006		4,567		7.2	%	$	257.4	$	56,364
			Total YTD		9,705		7.6	%	$	495.3	$	51,038
			Total 2007 and 2006 Sales		10,789		7.3	%	$	624.8	$	57,913

(1)  CAP rate based on projected NOI at the time of sale after an allowance for a 3% management fee but before capital expenditures.

Page 22

Breakdown Of Owned Units By Market

		Net							Net
		Acquired/							Acquired/
		Developed		As of		12/31/2006			Developed		As of		Current
Market	State	in 2006		12/31/2006		% of Units			in 2007		12/31/2007		% of Units
Suburban Washington	DC		1,387		9,579		25.92	%		-591		8,988		23.97	%
Suburban New York City	NY/NJ		-92		8,340		22.57	%		195		8,535		22.76	%
Baltimore	MD		790		6,632		17.95	%		714		7,346		19.59	%
Philadelphia	PA		87		6,467		17.50	%		-15		6,452		17.21	%
Boston	MA		891		2,143		5.80	%		239		2,382		6.35	%
Chicago	IL		0		2,242		6.07	%		0		2,242		5.98	%
Florida	FL		0		836		2.26	%		0		836		2.23	%
Portland	ME		72		715		1.93	%		0		715		1.91	%
Detroit	MI		-5,046		0		0.00	%		0		0		0.00	%
Upstate New York	NY		-4,567		0		0.00	%		0		0		0.00	%
Total			-6,478		36,954		100.0	%		542		37,496		100.0	%

Page 23

Debt Summary Schedule

							MATURITY	YEARS TO
PROPERTY		LENDER	RATE		BALANCE		DATE	MATURITY
FIXED RATE SECURED
Cypress Place		Reilly - Fannie Mae		7.130		5,863,958	01/01/08		0.00
Virginia Village		Wachovia - Svcr		6.910		8,579,507	01/01/08		0.00
Racquet Club South		NorthMarq - Freddie		6.980		2,734,653	07/01/08		0.50
Westwood Village - 1st	(1)	M and T Bank		5.940		14,698,073	10/31/08		0.84
Stone Ends		Prudential-Fannie Mae		4.530		22,368,343	11/01/08		0.84
Westwood Village - 2nd	(1)	M and T Bank		5.940		814,439	11/01/08		0.84
Westwood Village - 3rd		M and T Bank		5.550		17,106,812	11/01/08		0.84
Golf Club Apartments		ARCS - Fannie		6.585		15,041,002	12/01/08		0.92
Devonshire - 2nd		Wachovia - Fannie Mae		6.720		4,542,476	01/01/09		1.01
Heritage Square		CharterMac-Fannie		5.150		6,179,239	07/01/09		1.50
Blackhawk		M&T Realty - Freddie Mac		5.060		13,013,974	12/01/09		1.92
William Henry		NorthMarq - Freddie		5.310		22,134,007	12/01/09		1.92
Braddock Lee		Prudential-Fannie Mae		4.575		20,851,254	01/01/10		2.01
Elmwood Terrace		CharterMac-Fannie Mae		5.300		20,665,519	01/01/10		2.01
Glen Manor		Prudential-Fannie Mae		5.065		5,685,951	01/01/10		2.01
Hill Brook Apts		M&T Realty - Freddie Mac		5.210		10,977,516	01/01/10		2.01
Lakeview		Prudential-Fannie Mae		4.575		8,484,172	01/01/10		2.01
Pleasure Bay		Prudential-Fannie Mae		4.575		14,749,538	01/01/10		2.01
Ridley Brook		Prudential-Fannie Mae		4.865		9,472,737	01/01/10		2.01
Sherry Lake		GMAC - Freddie Mac		5.180		19,087,571	01/01/10		2.01
Windsor Realty		Prudential-Fannie Mae		4.575		4,567,010	01/01/10		2.01
Bayview Apartments		M&T Realty - Freddie Mac		4.950		11,295,237	03/01/10		2.17
East Winds Apartments		M&T Realty - Freddie Mac		4.990		6,415,353	03/01/10		2.17
Multi-Property		M&T Realty - Freddie Mac		7.575		45,400,000	05/01/10		2.33
Cider Mill - 1st	(1)	Deutsche Bank - Freddie		4.720		41,561,821	10/01/10		2.75
Cider Mill - 2nd		Deutsche Bank - Freddie		5.180		17,816,809	10/01/10		2.75
Cider Mill - 3rd		Deutsche Bank - Freddie		4.810		9,000,000	10/01/10		2.75
Home Properties of Devon		Prudential-Fannie Mae		7.500		28,892,000	10/01/10		2.75
The Heights at Marlborough - 1st	(1)	Deutsche Bank - Freddie		5.420		22,783,069	10/01/10		2.75
The Heights at Marlborough - 2nd		Deutsche Bank - Freddie		4.890		5,370,000	10/01/10		2.75
Trexler Park		Prudential-Fannie Mae		7.500		10,140,000	10/01/10		2.75
Multi-Property		Prudential-Fannie Mae		7.250		32,978,000	01/01/11		3.01
Multi-Property		Prudential-Fannie Mae		6.360		8,141,000	01/01/11		3.01
Multi-Property		Prudential-Fannie Mae		6.160		58,881,000	01/01/11		3.01
Orleans Village - 1st		Prudential-Fannie Mae		6.815		43,745,000	01/01/11		3.01
Orleans Village - 2nd		Prudential-Fannie Mae		5.360		22,248,000	01/01/11		3.01
New Orleans/Arbor Crossing		Prudential-Fannie Mae		4.860		18,844,256	03/01/11		3.17
Racquet Club East - 1st		Prudential-Fannie Mae		6.875		20,950,795	04/01/11		3.25
Racquet Club East - 2nd		Prudential-Fannie Mae		5.490		10,234,788	04/01/11		3.25
Timbercroft Townhomes 1 - 1st		GMAC - HUD		8.500		385,210	05/01/11		3.33
The Meadows at Marlborough	(1)	Prudential - Fannie Mae		5.500		21,015,941	08/01/11		3.59
Lake Grove - 1st		Prudential-Fannie Mae		6.540		25,493,370	12/01/11		3.92
Lake Grove - 2nd		Prudential-Fannie Mae		5.510		10,975,059	12/01/11		3.92
Mount Vernon Square	(1)	KeyBank RE Cap-Fannie		5.490		88,448,630	01/01/12		4.01
Multi-Property Notes Pay		Seller Financing		4.000		415,831	02/01/12		4.09
Timbercroft III - 1st		GMAC - HUD		8.000		579,753	02/01/12		4.09
Castle Club Apartments		NorthMarq - Freddie		7.080		6,532,869	05/01/12		4.34
Gateway Village		Prudential-Fannie Mae		6.885		6,759,160	05/01/12		4.34
The Colonies		Prudential-Fannie Mae		7.110		19,851,969	06/01/12		4.42
Carriage Hill - NY		M&T Realty - Freddie Mac		6.850		5,602,699	07/01/12		4.50
Lakeshore Villas		M&T Realty - Freddie Mac		6.850		4,841,666	07/01/12		4.50
Patricia Apts		M&T Realty - Freddie Mac		6.830		5,134,581	07/01/12		4.50
Sunset Gardens - 1st		M&T Realty - Freddie Mac		6.830		5,694,716	07/01/12		4.50
Sunset Gardens - 2nd		M&T Realty - Freddie Mac		5.520		2,734,505	07/01/12		4.50
Woodholme Manor		Prudential-Fannie Mae		7.165		3,640,172	07/01/12		4.50
Regency Club - 1st	(1)	CharterMac-Fannie Mae		4.840		17,937,127	10/01/12		4.76
Regency Club - 2nd		CharterMac-Fannie Mae		4.950		7,613,059	10/01/12		4.76
Liberty Place	(1)	CW Capital- Fannie		5.710		6,333,553	11/01/12		4.84
Hackensack Gardens - 1st		Wash Mutual-Fannie Mae		5.260		4,651,271	03/01/13		5.17
Hackensack Gardens - 2nd		Wash Mutual-Fannie Mae		5.440		4,488,049	03/01/13		5.17
Topfield Apartments		M&T Realty-Fannie Mae		5.300		6,244,677	04/01/13		5.25
Canterbury Apartments		M&T Realty-Fannie Mae		5.020		28,525,150	05/01/13		5.34
Morningside		JPMorganChase		6.990		16,445,202	05/01/13		5.34
Multi-Property		Prudential - Fannie Mae		6.475		100,000,000	08/31/13		5.67
Heritage Woods Apts	(1)	MMA Realty - Fannie		5.290		5,045,574	09/01/13		5.67
Falkland Chase		CharterMac-Fannie Mae		5.480		13,590,331	04/01/14		6.25
The Apts. At Wellington Trace		M&T Realty - Freddie Mac		5.520		25,217,486	04/01/14		6.25
Hawthorne Court		CharterMac-Fannie Mae		5.270		36,582,008	07/01/14		6.50
Curren Terrace - 1st		M&T Realty - Freddie Mac		5.360		14,287,662	10/01/14		6.76
Curren Terrace - 2nd		M&T Realty - Freddie Mac		5.090		10,250,000	10/01/14		6.76
Stratford Greens		North Fork Bank		5.750		32,608,143	07/01/15		7.50
Sayville Commons		M&T Realty - Freddie Mac		5.000		42,047,579	08/01/15		7.59
Northwood Apartments		M&T Realty - Freddie Mac		5.500		10,675,000	12/01/15		7.92
Cinnamon Run - 1st		M&T Realty - Freddie Mac		5.250		52,300,000	01/01/16		8.01
Cinnamon Run - 2nd		M&T Realty - Freddie Mac		5.550		5,409,449	01/01/16		8.01
Peppertree Farm - 1st		M&T Realty - Freddie Mac		5.250		80,500,000	01/01/16		8.01
Peppertree Farm - 2nd		M&T Realty - Freddie Mac		5.550		1,967,068	01/01/16		8.01
The Hamptons/Vinings at Hamptons		Prudential-Fannie Mae		5.565		53,436,513	02/01/16		8.09

Page 24

				MATURITY	YEARS TO
PROPERTY	LENDER	RATE	BALANCE	DATE	MATURITY

Devonshire - 1st		Wachovia - Fannie Mae	5.600		39,071,019		04/01/16	8.26
Mid-Island		Prudential-Fannie Mae	5.480		19,913,000		04/01/16	8.26
Owings Run 1 & 2		Prudential-Fannie Mae	5.590		43,081,000		04/01/16	8.26
Country Village		CharterMac-Fannie Mae	5.520		19,608,361		06/01/16	8.42
Fox Hall Apartments		Columbia Nat'l - Freddie	5.610		47,000,000		06/01/17	9.42
Mill Towne Village		Prudential-Fannie Mae	5.990		24,239,000		09/01/17	9.68
Royal Gardens Apts.		M&T Realty - Freddie Mac	5.830		47,000,000		11/01/17	9.84
Village Square 1, 2 & 3		Prudential-Fannie Mae	5.810		39,285,000		12/01/17	9.93
Chatham Hill		M&T Realty - Freddie Mac	5.590		45,000,000		01/01/18	10.01
Seminary Towers Apartments		Prudential-Fannie Mae	5.485		53,515,000		07/01/18	10.51
Bonnie Ridge - 1st		Prudential Life	6.600		14,078,380		12/15/18	10.96
Bonnie Ridge - 2nd		Prudential Life	6.160		18,776,557		12/15/18	10.96
Bonnie Ridge - 3rd		Prudential Life	6.070		25,897,068		12/15/18	10.96
Timbercroft III - 2nd		M & T Realty - HUD	8.375		2,669,065		06/01/19	11.42
Timbercroft Townhomes 1 - 2nd		M & T Realty - HUD	8.375		1,812,093		06/01/19	11.42
Dunfield Townhomes		Centerline Capital	5.250		13,075,569		09/01/28	20.68
Bari Manor	(1)	Wachovia (Servicer)	4.440		2,644,155		10/11/28	20.79
Hudson View Estates	(1)	Wachovia (Servicer)	4.500		2,052,092		10/11/28	20.79
Sherwood Townhouses	(1)	Wachovia (Servicer)	4.290		639,522		10/11/28	20.79
Sparta Green	(1)	Wachovia (Servicer)	4.440		1,671,730		10/11/28	20.79
Highland House	(1)	Arbor Comml - Fannie	6.320		6,402,197		01/01/29	21.02
Westwoods	(1)	Capstone Realty - HUD	5.940		3,707,087		06/01/34	26.44
Briggs-Wedgewood	(2)	Berkshire Mtg - HUD	6.000		16,523,782		11/01/34	26.85
The Village At Marshfield	(1)	Capstone Realty - HUD	5.950		23,866,549		01/01/42	34.03
WTD AVG - FIXED SECURED			5.764		1,958,104,136			6.37
VARIABLE RATE SECURED
Barrington Gardens 30L+165		Wachovia Bank	6.720		3,990,000		03/15/08	0.21
Falkland Chase BMA Index + 1.10		MontCtyHOC-Fannie Mae	4.288		24,695,000		10/01/30	22.77
Adjusts Weekly
WTD AVG - VARIABLE SECURED			4.626		28,685,000			19.63
WTD AVG - TOTAL SECURED DEBT			5.747		1,986,789,136			6.56
FIXED RATE UNSECURED
Exchangeable Senior Notes			4.125		200,000,000		11/01/26	18.85
VARIABLE RATE UNSECURED - LINE OF CREDIT
Unsecured Line of Credit		M and T Bank et. al.	5.350		2,500,000		09/01/08	0.67
Adjusts Daily  30 LIBOR + 75
TOTAL COMBINED DEBT			5.599	$	2,189,289,136			7.67
% OF PORTFOLIO - FIXED					98.6	%
WTG AVG - TOTAL SECURED DEBT			5.747					6.56
WTD AVG - TOTAL PORTFOLIO			5.599					7.67

UNENCUMBERED PROPERTIES					FIXED RATE
					MATURING DEBT SCHEDULE
						MATURING		WTD AVG		% OF
					YEAR	DEBT		RATE		TOTAL
Beechwood Gardens	160		Sherwood House	6	2007	$	-				0.00	%
Cambridge Village	82		Southern Meadows	452	2008		87,206,788		5.82		4.45	%
Courtyards Village	224		Terry Apartments	65	2009		45,869,696		5.36		2.34	%
Coventry Village	94		The Brooke at Peachtree	146	2010		313,215,555		5.65		16.00	%
East Hill Gardens	33		The Colony	783	2011		273,892,419		6.24		13.99	%
Gardencrest	696		The Coves at Chesapeake	469	2012		182,120,291		5.89		9.30	%
Glen Brook	177		The Landings	384	2013		165,399,922		6.13		8.45	%
Holiday Square	144		The Sycamores	185	2014		99,927,487		5.36		5.10	%
Jacob Ford Village	270		The Townhomes of Beverly	204	2015		85,330,722		5.35		4.36	%
Liberty Commons	120		Trexler Park	168	2016		315,286,409		5.43		16.10	%
Maple Tree	84		Wayne Village Apartments	275	2017 - 2042		389,854,846		5.80		19.91	%
Mill Co	95		Woodleaf Apartments	228	TOTAL	$	1,958,104,136		5.76		100.00	%
Rider Terrace	24		Yorkshire Village	40
Ridgeview Chase	204
Total Unencumbered Properties:		27	Total Units:	5,812

Page 25

Recurring Capital Expenditure Summary

Effective January 1, 2007, the Company has updated its estimate of the amount of recurring, non-revenue enhancing capital expenditures incurred on an annual basis for a standard garden style apartment.  The Company now estimates that the proper amount is $760 per apartment unit compared to $525 which had been used since 2001.  This new amount better reflects current actual costs and the effects of inflation since the last update.

The Company has a policy to capitalize costs related to the acquisition, development, rehabilitation, construction and improvement of properties.  Capital improvements are costs that increase the value and extend the useful life of an asset.  Ordinary repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred.  Costs incurred on a lease turnover due to normal wear and tear by the resident are expensed on the turn.  Recurring capital improvements typically include: appliances, carpeting and flooring, HVAC equipment, kitchen/bath cabinets, new roofs, site improvements and various exterior building improvements.   Non-recurring upgrades include, among other items:  community centers, new windows, and kitchen/bath apartment upgrades.  The Company capitalizes interest and certain internal personnel costs related to the communities under rehabilitation and construction.

The table below is a list of the items that management considers recurring, non-revenue enhancing capital and maintenance expenditures for a standard garden style apartment.  Included are the per unit replacement cost and the useful life that Management estimates the Company incurs on an annual basis.

							Maintenance
					Capitalized		Expense		Total
	Capitalized				Expenditure		Cost Per		Cost Per
	Cost Per		Useful		Per Unit		Unit		Unit
Category	Unit		Life(1)		Per Year(2)		Per Year(3)		Per Year
Appliances	$	1,368		10	$	137	$	5	$	142
Blinds/shades		135		3		45		6		51
Carpets/cleaning		840		4		210		97		307
Computers, equipment, misc.(4)		120		5		24		29		53
Contract repairs		-		-		-		102		102
Exterior painting (5)		84		3		28		1		29
Flooring		250		7		36		-		36
Furnace/air (HVAC)		765		24		32		43		75
Hot water heater		260		7		37		-		37
Interior painting		-				-		138		138
Kitchen/bath cabinets		1,100		25		44		-		44
Landscaping		-		-		-		106		106
New roof		800		24		33		-		33
Parking lot		540		15		36		-		36
Pool/exercise facility		105		16		7		23		30
Windows		1,505		28		54		-		54
Miscellaneous (6)		555		15		37		40		77
Total	$	8,427			$	760	$	590	$	1,350

(1) Estimated weighted average actual physical useful life of the expenditure capitalized.

(2) This amount is not necessarily incurred each and every year.  Some years will be higher, or lower depending on the timing of certain longer life expenditures.

(3) These expenses are included in the Operating and Maintenance line item of the Consolidated Statement of Operations.  Maintenance labor costs are not included in the $590 per unit estimate.  All personnel costs for site supervision, leasing agents, and maintenance staff are combined and disclosed in the Company's same- store expense detail schedule.

(4) Includes computers, office equipment/ furniture, and maintenance vehicles.

(5) The level of exterior painting may be lower than other similar titled presentations as the Company's portfolio has a significant amount of brick exteriors.  In addition, the other exposed surfaces are most often covered in aluminum or vinyl.

(6) Includes items such as: balconies, siding, and concrete/sidewalks.

In reviewing the breakdown of costs above, one must consider the Company's unique strategy in operating apartments which has been to improve every property every year regardless of age.  Another part of its strategy is to purchase older properties and rehab and reposition them to enhance internal rates of return.  This strategy results in higher costs of capital expenditures and maintenance costs which is more than justified by higher revenue growth, higher net operating income growth and a higher rate of property appreciation.

Page 26

Capital Expenditure Summary

The Company estimates that during the three and twelve months ended December 31, 2007 approximately $190 and $760 per unit, respectively, was spent on recurring capital expenditures.  The table below summarizes the breakdown of capital improvements by major categories between recurring and non-recurring, revenue generating capital improvements as follows:

For the three months ended December 31, 2007
($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
New buildings	$	-	$	-	$	641	$	17	$	641	$	17
Major building improvements		1,104		30		4,113		111		5,217		141
Roof replacements		306		8		1,288		35		1,594		43
Site improvements		399		11		3,961		107		4,360		118
Apartment upgrades		971		26		5,664		153		6,635		179
Appliances		1,126		30		14		-		1,140		30
Carpeting/flooring		2,282		62		1,131		30		3,413		92
HVAC/mechanicals		640		17		3,281		88		3,921		105
Miscellaneous		223		6		524		14		747		20
Totals	$	7,051	$	190	$	20,617	$	555	$	27,668	$	745

(a) Calculated using the weighted average number of units owned, including 32,600 core units, 2006 acquisition units of 3,067, and 2007 acquisition units of 1,437 for the three months ended December 31, 2007 and 32,600 core units and 2006 acquisition units of 1,489 for the three months ended December 31, 2006.

For the twelve months ended December 31, 2007
(in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
New Buildings	$	-	$	-	$	2,067	$	56	$	2,067	$	56
Major building improvements		4,368		119		13,036		355		17,404		474
Roof replacements		1,211		33		2,810		77		4,021		110
Site improvements		1,578		43		8,514		232		10,092		275
Apartment upgrades		4,350		119		16,485		449		20,835		568
Appliances		3,945		107		4		-		3,949		107
Carpeting/Flooring		9,029		246		2,598		71		11,627		317
HVAC/Mechanicals		2,533		69		9,636		263		12,169		332
Miscellaneous		881		24		2,125		58		3,006		82
Totals	$	27,895	$	760	$	57,275	$	1,561	$	85,170	$	2,321

(a) Calculated using the weighted average number of units owned, including 32,600 core units, 2006 acquisition units of 3,067, and 2007 acquisition units of 1,036 for the twelve months ended December 31, 2007 and 32,600 core units and 2006 acquisition units of 505 for the twelve months ended December 31, 2006.

Page 27

Capital Expenditure Summary

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

For the three months ended December 31, 2007
($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit		Cap Ex		Per Unit		Improvements		Per Unit
Core Communities	$	6,195	$	190	$	15,682	$	481	$	21,877	$	671
2007 Acquisition Communities		273		190		1,893		1,317		2,166		1,507
2006 Acquisition Communities		583		190		3,042		992		3,625		1,182
Sub-total		7,051		190		20,617		555		27,668		745
2007 Disposed Communities		54		190		141		492		195		682
2006 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (1)		-		-		-		-		866		-
	$	7,105	$	190	$	20,758	$	555	$	28,729	$	745

For the twelve months ended December 31, 2007

(in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit		Cap Ex		Per Unit		Improvements		Per Unit
Core Communities	$	24,776	$	760	$	46,858	$	1,437	$	71,634	$	2,197
2007 Acquisition Communities		787		760		2,563		2,474		3,350		3,234
2006 Acquisition Communities		2,331		760		7,856		2,561		10,187		3,321
Sub-total		27,894		760		57,277		1,561		85,171		2,321
2007 Disposed Communities		562		760		1,317		1,782		1,879		2,542
2006 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (1)		-		-		-		-		3,280		-
	$	28,456	$	760	$	58,594	$	1,565	$	90,330	$	2,325

(1) - No distinction is made between recurring and non-recurring expenditures for corporate office.  Corporate office expenditures includes principally computer hardware, software and office furniture and fixtures.

Adjusted Net Operating Income - Core Properties

($ in thousands)

	Quarter			Quarter
	12/31/2007			12/31/2006		Change
Net Operating Income	$	63,130		$	61,257		3.1	%
Less: Non-recurring Cap-ex @ 6%		(941	)		-		-
Adjusted Net Operating Income	$	62,189		$	61,257		1.5	%

Some of our Core Property NOI reflects incremental investments in the communities above and beyond normal capital replacements.  After charging ourselves a 6% cost of debt capital on these additional expenditures, what we refer to as the adjusted NOI for the quarter is recalculated and presented above.

Page 28

Development Communities as of December 31, 2007

($ in thousands)

		# of				Estimated										%
	Property	Units at		Estimated		Costs		Costs		Construction		Initial		Construction		Physical
	Type	Completion		Costs		Per Unit		Incurred		Start		Occupancy		Completion		Occupancy
Under construction:
Trexler Park West	Garden		216	$	26,100	$	120.8	$	21,400		3Q05		3Q06		3Q08		59.7	%
Allentown, PA
1200 East West Highway	High Rise		247		74,000		299.6		17,468		2Q07		3Q09		4Q09		n/a
Silver Spring, MD
Pre-construction:
Huntington Metro	Podium		421		123,000		292.2		36,263		1Q08		1Q10		3Q11		n/a
Alexandria, VA
Falkland North	High Rise		1,059		317,700		300.0		1,236	2010		2012		2014			n/a
Silver Spring, MD
Totals			1,943	$	540,800	$	278.3	$	76,367

Page 29

2008 Earnings Guidance

	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
2008 compared to 2007 based on NAREIT definition
FFO per share - 2008 guidance per NAREIT definition	$	.75 - $.79		$	.84 -$.88		$	.86 - $.90		$	.86 - $.90		$	3.31 - $3.47
Midpoint of guidance	$	0.77		$	0.86		$	0.88		$	0.88		$	3.39
FFO per share - 2007 actual per NAREIT definition	$	0.726		$	0.853		$	0.835		$	0.786		$	3.202
Improvement projected		6.1	%		0.8	%		5.4	%		12.0	%		5.9	%
2008 compared to 2007 based on "Operating FFO"
FFO per share - 2008 Operating FFO	$	.75 - $.79		$	.84 -$.88		$	.86 - $.90		$	.86 - $.90		$	3.31 - $3.47
Midpoint of guidance	$	0.77		$	0.86		$	0.88		$	0.88		$	3.39
FFO per share - 2007 Operating FFO	$	0.766		$	0.853		$	0.835		$	0.786		$	3.242
Improvement projected		0.5	%		0.8	%		5.4	%		12.0	%		4.6	%

"Operating FFO" is defined as FFO as computed under the strict interpretation of the NAREIT definition and adding back impairment and other non-recurring charges.  Following the NAREIT definition created certain noise in 2007 due to the redemption of the 9.0% Series F Preferred Stock.  The $1.9 million in issuance costs originally incurred in 2002 was recorded as a reduction to shareholders' equity.  Upon redemption in the first quarter of 2007, the $1.9 million was reflected as a reduction from both net income available to common shareholders and Funds From Operations available to common shareholders.  Operating FFO for the year exceeded the results as measured under the NAREIT definition by approximately four cents per share in 2007 as this $1.9 million was added back for Operating FFO purposes.

		First			Second			Third			Fourth
		Quarter			Quarter			Quarter			Quarter			Year
Assumptions for mid-point of guidance:
Same store revenue growth	see notes (1) & (2)		4.2	%		2.8	%		3.9	%		4.3	%		3.8	%
Same store expense growth	see note (3)		5.7	%		4.6	%		4.6	%		3.0	%		4.5	%
Same store NOI growth			3.1	%		1.6	%		3.4	%		5.1	%		3.3	%
Same store 2008 physical occupancy			94.6	%		95.1	%		95.3	%		94.7	%		94.9	%
Same store 2007 physical occupancy			94.4	%		95.0	%		95.0	%		94.7	%		94.8	%
Difference in occupancy			0.2	%		0.1	%		0.3	%		0.0	%		0.1	%
Annual growth by region:		2007						2008 Same Store Growth Projection
		% of NOI						Revenue			Expenses			NOI
Philadelphia			15.0	%					4.5	%		3.2	%		5.5	%
Washington, DC			26.9	%					4.2	%		4.6	%		3.9	%
Baltimore			17.4	%					3.9	%		2.5	%		4.8	%
Florida			1.9	%					3.9	%		5.8	%		2.2	%
Chicago			4.2	%					3.5	%		8.6	%		-1.1	%
New Jersey/Long Island/Hudson Valley			26.0	%					3.4	%		5.7	%		1.6	%
Maine			1.5	%					2.6	%		5.4	%		0.8	%
Boston			7.1	%					2.3	%		2.5	%		2.2	%
Total			100.0	%					3.8	%		4.5	%		3.3	%

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2008 Earnings Guidance

(1) Rental rates are projected to increase 3.1%.  Economic occupancy is expected to increase 0.2% for the year, resulting in 3.3% rental revenue growth.

(2) Property other income is expected to increase substantially year over year, increasing the 3.3% rental revenue growth to 3.8% total revenue growth. Driving this increase is a $3.1 million marginal increase in utility recovery income.

The water and sewer recovery is not affected significantly by seasonality and we expect a consistent revenue stream each quarter.  The heating cost recovery revenue will be much higher in the winter months, and accordingly lower in the warmer months, so this will create a certain "lumpiness", but will match up better with our period of higher costs.  The breakdown by quarter for the combined recovery is as follows:

	(In thousands)
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter		Year
Utility recovery - 2008	$	7,350		$	4,100		$	3,500		$	5,850	$	20,800
Utility recovery - 2007	$	5,740		$	4,532		$	2,802		$	4,613	$	17,687
Difference	$	1,610		$	(432	)	$	698		$	1,237	$	3,113
(3) Expense growth rates assumed for the midpoint of guidance for every expense category are as follows:
	% of Total						% Increase
	Expenses						Over 2007
Electricity		4.4	%					4.0	%
(a)           Natural gas heating costs		11.3	%					5.2	%
(a)           Water and sewer		7.3	%					5.3	%
(b)           Repairs and maintenance		15.4	%					6.6	%
Total personnel costs		23.8	%					3.6	%
(c)           Real estate taxes		23.8	%					5.2	%
Property insurance		5.7	%					6.5	%
Advertising		2.4	%					-2.0	%
(d)           Legal & Professional		0.6	%					-23.2	%
Office & telephone		2.6	%					5.0	%
(e)           Corporate apartment expense		0.4	%					-17.8	%
Snow removal		0.5	%					-13.4	%
(f)           Trash		1.8	%					15.3	%
		100.0	%					4.5	%

(a) Both heating and water costs are projected to increase over 5%, but that is helping to increase the recovery projected in  (2) above.

(b) Repairs & maintenance is projected to increase 6.6%.  The increase is due to a tough comparison to the third quarter of 2007.  A year ago in the third quarter, R&M was reduced by over $1.4 million due to a FIN #30 adjustment due to a large fire loss.

(c) Real estate taxes also will be a tough comparison due to "noise" in the 2007 results. The first quarter is projected to increase 8% as the 2007 period included $387 thousand of previous years' refunds from a tax assessment reduction.  The third quarter is projected to increase only 2% as the 2007 period included a $500 thousand tax true-up due to an assessment increase. Finally, the fourth quarter is projected to increase 7% as the year ago period included $582 thousand of a one-time benefit as Chicago taxes were successfully reduced.

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2008 Earnings Guidance

(3) Expense growth rates continued

(d) Legal & professional is projected to decrease substantially as 2007 included fees for successful tax assessment reductions that are not expected to continue in 2008 (see c above).

(e) Corporate apartment expense (a component of office and telephone) is projected to decrease as the level of additional corporate income has also decreased.

(f) Trash removal expense is projected to increase double digits due to a tough comparison to 2007.  We had been enjoying costs much lower than market due to our participation in a national buying group.  The largest supplier has left this group, such that our costs in 2008 reflect costs closer to market.

(4) G & A costs are expected to increase 4.4%.  The run rate is projected as follows:

	(In thousands)
	First		Second		Third			Fourth
	Quarter		Quarter		Quarter			Quarter		Year
2008 projected	$	6,200	$	6,325	$	6,050		$	5,875	$	24,450
2007 Actual	$	5,518	$	5,952	$	6,159		$	5,783	$	23,412
Increase	$	682	$	373	$	(109	)	$	92	$	1,038

The run rate above included $960 thousand expensed for the Development Department in 2007,  which is projected to increase to $1.35 million in 2008.

(5) Interest and dividend income isexpected to have a run rate of approximately $30 thousand per quarter.  The level for 2007 was substantially higher as proceeds from asset sales were held in cash until invested permanently into property, debt repayment and stock buyback. The run rate is projected as follows:

	(In thousands)
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
2008 projected	$	50		$	25		$	25		$	25		$	125
2007 Actual	$	1,207		$	83		$	396		$	277		$	1,963
(Decrease)	$	(1,157	)	$	(58	)	$	(371	)	$	(252	)	$	(1,838	)

(6) Other income is expected to average approximately $100 thousand per quarter.  The higher level in the first quarter of 2007 was due to a post-closing consulting agreement from the Upstate NY sale.  The run rate is projected as follows:

	(In thousands)
	First			Second		Third			Fourth
	Quarter			Quarter		Quarter			Quarter			Year
2008 projected	$	125		$	100	$	125		$	50		$	400
2007 Actual	$	775		$	58	$	229		$	62		$	1,124
(Decrease)	$	(650	)	$	42	$	(104	)	$	(12	)	$	(724	)
	(In millions)
	First			Second		Third			Fourth
	Quarter			Quarter		Quarter			Quarter			Year
(7) Acquisition pace (cap rate avg of 6.25% assumed)	$	37.5		$	37.5	$	37.5		$	37.5		$	150
(8) Disposition pace (cap rate avg of 6.25% assumed)	$	65		$	60	$	0		$	55		$	180

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2008 Earnings Guidance

	(In millions)
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter		Year
(9) Stock buyback activity	$	50	$	0	$	0	$	0	$	50

Quarter Comparison for FFO

First quarter: The first quarter of 2008 is a difficult comp to 2007 due to the success we enjoyed.  In 2007, we had 5.8% revenue growth (fueled by significant heating cost recovery for the first time) and negative expense growth producing 11.7% NOI growth. Expenses which were down included heating costs (lower rates and warmer weather); one-time refund of previous years' real estate taxes of $387 thousand; and property insurance decrease recorded in reserves.

For 2008, we are projecting 4.2% revenue growth, again fueled by increases in utility recovery.  Due to tough expense comps, instead of the 0.8% reduction in 2007, we are projecting a 5.7% increase in Operating & maintenance expenses, resulting in 3.1% NOI growth.

Tough comps for Interest and dividend income (down $1.2 million), other income (down $650 thousand), and G & A (up $680 thousand) produce Operating FFO growth of approximately 1%. A positive comparison to 2007 for preferred stock redemption charges results in FFO growth of 6.1%.

Some dilution from first quarter 2008 property sales is expected, as $65 million in sales at an average 6.25% cap rate are scheduled early in the quarter, with $37.5 million of replacement properties assumed to close in late March.  The proceeds will be used to either pay down low rate variable debt, or earn interest at rates much lower than the cap rate.

Second quarter: In 2007, we had 4.0% revenue growth and 7.4% expense growth, resulting in 1.8% NOI growth.  The second quarter in 2007 received more utility recovery than we are assuming for 2008, mostly shifting to the first quarter of 2008 due to timing differences.  This reduction in recovery reduces our projected rent growth of 3.2% for the quarter to 2.8%total revenue growth.  Expenses are expected to increase 4.6%, resulting in NOI growth of 1.6%, and FFO growth of approximately 1%.

Third quarter: In 2007, we had 2.4% revenue growth and negative 0.3% expense growth (another tough comp), resulting in 3.8% NOI growth. For 2008, we are projecting 3.0% rental rate growth, a 0.5% pick-up from reduced vacancy and bad debt expense, and a continued increase of 0.4% in other income from utility recovery, totaling 3.9% revenue growth. Expenses are projected to go up 4.6%, mostly from a tough repairs and maintenance comp year over year, resulting in 3.4% NOI growth and 5.4% FFO growth.

Fourth quarter: In 2007, we had 3.7% revenue growth and 4.5% expense growth, resulting in 3.1% NOI growth.  For 2008, we are expecting 3.2% rental rate growth, a 0.2% pick-up in reduced vacancy and bad debt expense, and a continued increase from utility recovery of 0.9%, totaling 4.3% revenue growth.  Expenses are projected to moderate somewhat with a positive comparison for repairs and maintenance resulting in 3.0% expense growth, and 5.1% NOI growth.

General comments

Both the third and fourth quarters are assumed to benefit from LRO being fully rolled out and functioning with positive results, which offset potential weakness from recessionary trends.  In addition, with MRI fully rolled out, certain efficiencies in property management and G & A are expected to help reduce the expense run rate.

In addition, we are starting the year with only 1.4% of our debt portfolio at variable rates.  This contributes to lower volatility as our fixed rates are easily projected, and in times of changing interest rates, cause less fluctuation on the bottom line.  Our peers average closer to 20% variable rate debt exposure.  When rates rise, we have been more protected than our peers. We are entering a period where short-term rates are anticipated to be much lower in 2008 compared to 2007.  For 2008, we plan on increasing our level of variable rate debt by using our line of credit to its potential.  In addition,  fixed-rate loans with five-year terms (versus ten-year terms) will be given priority as the loan spreads between five- and ten-year terms have widened.  This also fits our laddered maturity schedule, as we have a significant exposure ten years out, but much less five years out.  We start to get more exposure to variable debt during the year, with the greatest impact to the bottom line coming in the fourth quarter.

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