hme8k4q2009earnings.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

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)

(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 February 18, 2010, the Registrant issued a press release announcing its results for the fourth quarter of 2009. The related press release is attached hereto as Exhibit 99.1. Attached as Exhibit 99.2 is the supplemental information referred to in the press release. The information in this Current Report is being furnished pursuant to Item 7.01, Regulation FD Disclosure.

The attached 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.

Exhibits

Exhibit 99 Press Release

Exhibit 99 Supplemental information to press release of February 18, 2010, relating to fourth quarter 2009 results.

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 19, 2010	HOME PROPERTIES, INC.
		(Registrant)




		By:	/s/ David P. Gardner
			David P. Gardner
			Executive Vice President and
			Chief Financial Officer

FOR IMMEDIATE RELEASE

HOME PROPERTIES REPORTS

FOURTH QUARTER AND YEAR END 2009 RESULTS

Dividend Reduced

ROCHESTER, NY, FEBRUARY 18, 2010 – Home Properties (NYSE:HME) today released financial results for the fourth quarter and year ended December 31, 2009. All results are reported on a diluted basis.

“Home Properties’ sector-leading 2009 net operating income (“NOI”) growth reflects the consistency and strength of the Company’s geographic markets, middle-market apartment strategy and operations focus,” said Edward J. Pettinella, Home Properties President and CEO. “Based on our projections and those of the other publicly-traded apartment companies, we expect to repeat our number one performance in same-store NOI growth in 2010.”

Earnings per share ("EPS") for the quarter ended December 31, 2009 was $0.36, compared to $0.78 for the quarter ended December 31, 2008. The $0.42 decrease in EPS is primarily attributable to a gain on early extinguishment of debt of $0.25 per share offset by a real estate impairment charge on assets held as general partner of $0.09 per share, both recorded in the fourth quarter 2008, combined with a decrease of $0.24 per share in gain on disposition of property between 2009 and 2008. EPS for the year ended December 31, 2009 was $1.04, compared to $2.04 for the year ended December 31, 2008. The year-over-year decrease of $1.00 per share is primarily attributable to the fourth quarter 2008 gain on early extinguishment of debt and real estate impairment charge, combined with a decrease in gain on disposition of property between years.

For the quarter ended December 31, 2009, Funds From Operations ("FFO") was $35.4 million, or $0.77 per share, compared to $43.0 million, or $0.95 per share, for the quarter ended December 31, 2008. Fourth quarter 2009 FFO of $0.77 per share was $0.01 above the midpoint of the guidance range provided by management and met the analysts’ mean estimate, as reported by Thomson. FFO for the year ended December 31, 2009 was $3.22 per share, compared to $3.45 in the year-ago period. Excluding two unusual non-recurring items recorded in the 2008 fourth quarter for gain on early extinguishment of debt after fees and other accruals, and an impairment charge, FFO per share would have been $0.81 for the 2008 fourth quarter and $3.32 for the full year 2008. Compared to the adjusted FFO per share for 2008, 2009 results represent a decrease of 4.4% for the quarter and 2.9% for the full year. A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

Fourth Quarter Operating Results

For the fourth quarter of 2009, same-property comparisons (for 102 "Core" properties containing 34,768 apartment units owned since January 1, 2008) reflected a decrease in total revenues of 1.6% compared to the same quarter a year ago. Net operating income ("NOI") increased by 1.1% from the fourth quarter of 2008. Property level operating expenses decreased by 5.2% compared to the prior year quarter, primarily due to decreases in natural gas heating costs, repairs and maintenance, personnel costs and property insurance, which were partially offset by an increase in snow removal costs.

Average physical occupancy for the Core properties was 95.1% during the fourth quarter of 2009, compared to 94.9% during the fourth quarter of 2008. Average monthly rental rates of $1,130 represent a 1.4% decrease compared to the year-ago period.

On a sequential basis, compared to the 2009 third quarter results for the Core properties, total revenues increased 0.7% in the fourth quarter of 2009, expenses were up 2.4% and net operating income decreased 0.5%. Average physical occupancy at 95.1% was identical to third quarter 2009 occupancy.

Physical occupancy for the 1,029 net apartment units acquired/developed between January 1, 2008 and December 31, 2009 (the “Recently Acquired Communities”) averaged 93.9% during the fourth quarter of 2009, at average monthly rents of $1,138.

Year-to-Date Operating Results

For the year ended December 31, 2009, same-property comparisons for the Core properties reflected a decrease in total revenue of 0.1% and expenses of 0.2%, resulting in net operating income that was essentially flat compared to 2008. Property level operating expenses decreased for the year, primarily due to decreases in natural gas heating costs, property insurance and property management G&A costs, which were partially offset by increases in personnel costs, real estate taxes and snow removal costs.

Average physical occupancy for the Core properties was 94.9% during 2009, down from 95.0% a year ago, with average monthly base rents rising 0.1%.

Dispositions

During the fourth quarter of 2009, the Company closed on two separate sale transactions, with a total of 592 units, for $40.5 million, producing $39.3 million in net proceeds after closing costs. A gain on sale of $10.8 million was recorded in the fourth quarter related to these sales. The details for a 432-unit property located in Philadelphia sold earlier in the quarter were presented in the third quarter earnings news release. The most recent sale, closed December 16, 2009, was a 160-unit property also located in Philadelphia, which sold for $10.5 million at an expected first year cap rate of 7.6%.

Development

The Company has two projects currently under construction, 1200 East West Highway and The Courts at Huntington Station. 1200 East West Highway is in Silver Spring, Maryland and construction is expected to be completed in April 2010. It is a 14-story high rise with 247 apartments and 10,600 square feet of retail or nonresidential space that is expected to have initial occupancy in March 2010. Stabilization is anticipated after a one-year lease-up period.

The Courts at Huntington Station is in Alexandria, Virginia and construction of the 202 units in Phase I is expected to be complete by the end of May 2010. Initial occupancy is expected in April 2010 and the lease-up period is projected to last eleven months. Construction on Phase II (219 units) has commenced and is scheduled to be complete in the second quarter of 2011, reaching stabilized occupancy a year later.

The Company owns no raw land and has no real estate development investments in which the cost is in excess of fair market value. Therefore, the Company has not had to record any development pipeline impairment charges. The Company does not plan to acquire new entitled or raw land for development in 2010.

Capital Markets Activities

As of December 31, 2009, the Company’s ratio of debt-to-total market capitalization was 51.1% (based on a December 31, 2009 stock price of $47.71 to determine equity value), with $53.5 million outstanding on its $175 million revolving credit facility and $8.8 million of unrestricted cash on hand. Total debt of $2.3 billion was outstanding, at rates of interest averaging 5.6% and with staggered maturities averaging approximately six years. Approximately 89% of total indebtedness is at fixed rates. Interest coverage for the year averaged 2.2 times and the fixed charge ratio averaged 2.1 times.

In the 2009 fourth quarter, the Company closed on approximately $151 million in new secured loans, generating $34 million in net proceeds after the payoff of maturing loans. An additional $51 million of maturing debt was paid off, adding four properties to the unencumbered pool. The Company has reduced 2010 maturities from $305 million as of September 30, 2009 to only $146 million at December 31, 2009 by refinancing loans prior to maturity.

The Company did not repurchase any of its common shares during the fourth quarter. As of December 31, 2009, the Company has Board authorization to buy back up to approximately 2.3 million additional shares of its common stock or Operating Partnership Units, although it has no current plans to do so.

During the fourth quarter of 2009, the Company initiated an At-The-Market (“ATM”) equity offering program through which it may sell up to 3.7 million common shares, not to exceed $150 million of gross proceeds. During the fourth quarter, 871,600 shares were issued at an average price of $45.70 generating net proceeds of $39 million. In January 2010, the settlement of pending trades at December 31, 2009 resulted in an additional 169,600 shares issued at an average price of $48.37 generating net proceeds of $8 million. As of December 31, 2009, up to 2,658,800 shares remain available for issuance under this program.

Outlook

For 2010, the Company expects FFO per share between $2.75 and $2.99 per share, which will produce FFO per share growth of negative 14.6% to negative 7.1% when compared to 2009 results. This guidance range reflects management’s current assessment of economic and market conditions. The assumptions for the 2010 projections are included with the published supplemental information.

Pettinella commented, “Like our peers in the industry, we continue to feel the effects of the current economic environment, but despite what we view as a challenging 2010, our outlook for same-unit NOI performance is the best among our peers. The impact of relatively favorable operating results is muted in our 2010 FFO projections due to the earnings dilution from lower than expected development yields, as well as dilution from the ATM equity offering program and higher interest expense from the September 2009 renewal of the line of credit. If the economy improves as projected, our outlook for 2011 is cautiously optimistic. Beyond that, we believe 2012 through 2014 could result in some of the best results in our history.”

The quarterly breakdown for the 2010 guidance on FFO per share results is as follows: First quarter $0.65 to $0.71; second quarter $0.68 to $0.74; third quarter $0.72 to $0.78; fourth quarter $0.70 to $0.76.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.58 per share for the quarter ended December 31, 2009. The dividend is payable on March 5, 2010 to shareholders of record on March 1, 2010, and is equivalent to an annualized rate of $2.32 per share. The current annual dividend represents a 5.0% yield based on yesterday's closing price of $46.41. Home Properties’ common stock will begin trading ex-dividend on February 25, 2010.

The quarterly dividend of $0.58 is a decrease of 13.4% from the Company’s prior quarterly dividend of $0.67 per share.

“The Board’s decision to reduce the dividend reflects the expectation that FFO will continue to be under pressure in 2010, before rental rate pricing improves in 2011 or beyond,” said Pettinella. “Unlike many Real Estate Investment Trusts (“REITs”) which cut or suspended their dividends in 2009, we were cautiously optimistic that we could weather the great recession without adjusting the dividend based on our sector-leading NOI last year. However, now that we expect the economic recovery to occur later and be more prolonged than originally anticipated, in addition to the increased common shares from the At the Market (ATM) equity offering program, we believe it is prudent to adjust our dividend payout level closer to the apartment REIT average.” The Company said it would provide more information about the dividend decision on the conference call tomorrow.

Supplemental Information

The Company produces supplemental information that includes 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 through the "Investor" section, e-mail or facsimile upon request.

Fourth Quarter and Year End 2009 Earnings 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 800-758-5606 (International 212-231-2906). An audio replay of the call will be available through February 25, 2010, by dialing 800-633-8284 or 402-977-9140 and entering the passcode 21442490. The Company webcast, which includes audio and a slide presentation, will be available, live at 11:00 AM and archived by 1:00 PM, through the "Investors" section home page of the Web site, http://www.homeproperties.com.

First Quarter 2010 Earnings Release and Conference Call

The first quarter financial results are scheduled to be released after the stock market closes on Thursday, May 6, 2010. A conference call, which will be simultaneously webcast, is scheduled for Friday, May 7, 2010 at 11:15 AM Eastern Time and is accessible following the above instructions. The passcode for that replay will be 21442491.

First Quarter 2010 Conference/Event Schedule

Home Properties’ President and CEO, Edward J. Pettinella, is scheduled to participate in a roundtable presentation and question and answer session at the Citi 2010 Global Property CEO Conference in Palm Beach, Florida, on Wednesday, March 3, 2010 at 9:45 AM. The live presentation and related materials will be available in the “Investors” section of Home Properties' Web site.

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 107 communities containing 36,948 apartment units. Of these, 35,798 units in 105 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 Fourth Quarter and Year End 2009 Results

For Immediate Release: February 18, 2010

Page 6 of 9

HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
Fourth Quarter Results:	Occupancy(a)							4Q 2009	4Q 2009 vs. 4Q 2008 % Growth
							Average
							Monthly		Base
							Rent Per		Rental			Total			Total
		4Q 2009			4Q 2008		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.1	%		94.9	%	$	1,130		(1.4	%)		(1.6	%)		5.2	%		1.1	%
Acquisition Properties(c)		93.9	%	NA			$	1,138	NA			NA			NA			NA
TOTAL PORTFOLIO		95.0	%	NA			$	1,130	NA			NA			NA			NA

	Avg. Physical
Year-To-Date Results:	Occupancy(a)						YTD 2009		YTD 2009 vs. YTD 2008 % Growth
							Average
							Monthly		Base
							Rent Per		Rental			Total			Total
		YTD 2009			YTD 2008		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		94.9	%		95.0	%	$	1,137		0.1	%		(0.1	%)		0.2	%		0.0	%
Acquisition Properties(c)		92.5	%	NA			$	1,162	NA			NA			NA			NA
TOTAL PORTFOLIO		94.8	%	NA			$	1,137	NA			NA			NA			NA

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

(b)	Core Properties consist of 102 properties with 34,768 apartment units owned throughout 2008 and 2009.

(c)	Acquisition Properties consist of 3 properties with 1,029 apartment units acquired/developed subsequent to January 1, 2008.

Home Properties Reports Fourth Quarter and Year End 2009 Results

For Immediate Release: February 18, 2010

Page 7 of 9

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2009			2008			2009			2008
Rental income	$	114,976		$	114,665		$	462,086		$	452,142
Property other income		10,494			11,091			40,764			41,336
Interest income		41			6			59			165
Other income		301			92			700			400
Total revenues		125,812			125,854			503,609			494,043
Operating and maintenance		52,563			54,723			211,265			207,517
General and administrative		6,237			6,703			24,476			25,488
Interest		31,232			30,581			122,814			119,330
Depreciation and amortization		30,256			28,844			119,689			111,310
Impairment of real estate assets		-			4,000			-			4,000
Total expenses		120,288			124,851			478,244			467,645
Income from operations before gain on early extinguishment of debt		5,524			1,003			25,365			26,398
Gain on early extinguishment of debt		-			11,304			-			11,304
Income from continuing operations		5,524			12,307			25,365			37,702
Discontinued operations
Income (loss) from discontinued operations		149			1,189			(2,601	)		3,943
Gain on disposition of property		10,844			21,711			24,314			51,560
Discontinued operations		10,993			22,900			21,713			55,503
Net income		16,517			35,207			47,078			93,205
Net income attributable to noncontrolling interest		(4,284	)		(10,068	)		(12,659	)		(27,124	)
Net income attributable to common shareholders	$	12,233		$	25,139		$	34,419		$	66,081
Reconciliation from net income attributable to common shareholders to Funds From Operations:
Net income attributable to common shareholders	$	12,233		$	25,139		$	34,419		$	66,081
Real property depreciation and amortization		29,718			29,435			118,480			114,260
Noncontrolling interest		4,284			10,068			12,659			27,124
Gain on disposition of property		(10,844	)		(21,711	)		(24,314	)		(51,560	)
Loss from early extinguishment of debt in connection with sale of real estate		-			30			4,927			1,413
FFO - basic and diluted (1)	$	35,391		$	42,961		$	146,171		$	157,318

(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, noncontrolling interest and extraordinary items plus depreciation from real property. In 2009 and 2008, the Company added back debt extinguishment costs which were incurred as a result of repaying property-specific debt triggered upon sale as a gain or loss on sale of the property. Because of the limitations of the FFO definition as published by NAREIT as set forth above, the Company has made certain interpretations in applying the definition. The Company believes all adjustments not specifically provided for are consistent with the definition. Other similarly titled measures may not be calculated in the same manner.

Home Properties Reports Fourth Quarter and Year End 2009 Results

For Immediate Release: February 18, 2010

Page 8 of 9

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Year Ended
	December 31						December 31
	2009			2008			2009			2008
FFO – basic and diluted	$	35,391		$	42,961		$	146,171		$	157,318
FFO – basic and diluted	$	35,391		$	42,961		$	146,171		$	157,318
Impairment of real property		-			4,000			-			4,000
FFO – operating (2)	$	35,391		$	46,961		$	146,171		$	161,318
FFO – basic and diluted	$	35,391		$	42,961		$	146,171		$	157,318
Recurring non-revenue generating capital expenses		(7,187	)		(7,246	)		(29,069	)		(28,885	)
Addback of non-cash interest expense		504			531			1,968			2,463
Addback of non-cash adjustment to gain on early extinguishment of debt		-			2,580			-			2,580
AFFO (3)	$	28,708		$	38,826		$	119,070		$	133,476
FFO – operating	$	35,391		$	46,961		$	146,171		$	161,318
Recurring non-revenue generating capital expenses		(7,187	)		(7,246	)		(29,069	)		(28,885	)
Addback of non-cash interest expense		504			531			1,968			2,463
Addback of non-cash adjustment to gain on early extinguishment of debt		-			2,580			-			2,580
AFFO – operating	$	28,708		$	42,826		$	119,070		$	137,476
Weighted average shares/units outstanding:
Shares – basic		33,621.9			32,228.6			33,040.8			31,991.8
Shares – diluted		33,965.9			32,356.2			33,172.1			32,332.7
Shares/units – basic (4)		45,423.7			45,144.2			45,274.4			45,200.4
Shares/units – diluted (4)		45,767.7			45,271.8			45,405.7			45,541.3
Per share/unit:
Net income – basic	$	0.36		$	0.78		$	1.04		$	2.07
Net income – diluted	$	0.36		$	0.78		$	1.04		$	2.04
FFO – basic	$	0.78		$	0.95		$	3.23		$	3.48
FFO – diluted	$	0.77		$	0.95		$	3.22		$	3.45
Operating FFO – diluted (2)	$	0.77		$	1.04		$	3.22		$	3.54
AFFO (3)	$	0.63		$	0.86		$	2.62		$	2.93
Operating AFFO (2) (3)	$	0.63		$	0.95		$	2.62		$	3.02
Common Dividend paid	$	0.67		$	0.67		$	2.68		$	2.65

(2)	Operating FFO is defined as FFO as computed in accordance with NAREIT definition, adjusted for the addback of real estate impairment charges.

(3)

Adjusted Funds From Operations ("AFFO") is defined as gross FFO less an annual reserve for anticipated recurring, non-revenue generating capitalized costs of $800 and $780 per apartment unit in 2009 and 2008, respectively. Non-cash interest expense and non-cash adjustments to gain on early extinguishment of debt have been added back for 2009 and 2008. The resulting sum is divided by the weighted average shares/units on a diluted basis to arrive at AFFO per share/unit.

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

Home Properties Reports Fourth Quarter and Year End 2009 Results

For Immediate Release: February 18, 2010

Page 9 of 9

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	December 31, 2009			December 31, 2008
Land	$	508,087		$	515,610
Construction in progress		184,617			111,039
Buildings, improvements and equipment		3,223,275			3,245,741
		3,915,979			3,872,390
Accumulated depreciation		(733,142	)		(636,970	)
Real estate, net		3,182,837			3,235,420

Cash and cash equivalents		8,809			6,567
Cash in escrows		27,278			27,904
Accounts receivable		14,137			14,078
Prepaid expenses		16,783			16,277
Deferred charges		13,931			11,360
Other assets		4,259			5,488
Total assets	$	3,268,034		$	3,317,094
Mortgage notes payable	$	2,112,645		$	2,112,331
Exchangeable senior notes		136,136			134,169
Line of credit		53,500			71,000
Accounts payable		19,695			23,731
Accrued interest payable		10,661			10,845
Accrued expenses and other liabilities		27,989			32,043
Security deposits		19,334			21,443
Total liabilities		2,379,960			2,405,562

Common stockholders’ equity		661,112			650,778
Noncontrolling interest		226,962			260,754
Total equity		888,074			911,532
Total liabilities and equity	$	3,268,034		$	3,317,094

Total shares/units outstanding:
Common stock		34,655.4			32,431.3
Operating partnership units		11,734.6			12,821.2
		46,390.0			45,252.5

# # #

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

HOME PROPERTIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

FOURTH QUARTER 2009

TABLE OF CONTENTS

	4Q 2009 Supplemental Reports	Page
1.	Earnings Release	1-9
2.	Owned Community Results, Quarterly and Year-to-Date	10-13
3.	Physical Occupancy Comparison by Region	14
4.	Net Operating Results	15
5.	Resident Statistics	16
6.	Net Operating Income Detail and Seasonality Factor for NAV Calculation	17
7.	Operating Expense Detail	18
8.	Discontinued Operations	19
9.	Summary of Recent Acquisitions	20
10.	Summary of Recent Sales	21
11.	Breakdown of Owned Units by Market	22
12.	Debt Summary Schedule	23-25
13.	Recurring Capital Expenditure and Adjusted NOI Summary	26-28
14.	Development Communities	29
15.	Cash Flow Projection	30
16.	2010 Earnings Guidance	31-33

FOURTH QUARTER 2009												4Q '09 versus 4Q '08
												% Growth
	# of		Date	4Q '09		4Q '09			4Q '08			Rental			Total			Total			Total			4Q '09
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

Baltimore Region
Bonnie Ridge		960	7/1/1999	$	1,067		91.9	%		92.0	%		(2.5	%)		(4.0	%)		6.6	%		(2.0	%)
Canterbury Apartments		618	7/16/1999	$	946		95.2	%		95.8	%		1.2	%		(2.5	%)		5.5	%		(0.7	%)
Country Village		344	4/30/1998	$	913		95.3	%		94.6	%		2.3	%		0.4	%		2.1	%		2.3	%
Dunfield Townhomes		312	11/1/2007	$	1,102		95.0	%		95.7	%		3.4	%		4.1	%		(2.9	%)		4.9	%
Falcon Crest		396	7/16/1999	$	977		91.7	%		92.3	%		0.0	%		(2.2	%)		9.9	%		2.3	%
Fox Hall Apartments		720	3/29/2007	$	804		94.0	%		90.5	%		(4.2	%)		(3.1	%)		8.7	%		2.0	%
Gateway Village		132	7/16/1999	$	1,279		96.4	%		96.0	%		(0.1	%)		0.7	%		(4.6	%)		(1.3	%)
Heritage Woods		164	10/4/2006	$	1,042		97.4	%		96.0	%		1.1	%		3.4	%		6.8	%		10.1	%
Mill Towne Village Apts		384	5/31/2001	$	866		95.4	%		94.0	%		0.6	%		(2.0	%)		2.9	%		(1.4	%)
Morningside Heights		1,050	4/30/1998	$	858		93.3	%		92.6	%		(2.0	%)		(2.5	%)		5.2	%		(0.8	%)
Owings Run		504	7/16/1999	$	1,180		94.7	%		96.3	%		(1.0	%)		(0.1	%)		(1.4	%)		(0.8	%)
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,146		95.1	%		93.7	%		(3.0	%)		(3.2	%)		2.8	%		(3.4	%)
Saddle Brooke Apartments		468	10/29/2008	$	1,008		94.2	%		n/a			n/a			n/a			n/a			n/a
Selford Townhomes		102	7/16/1999	$	1,276		95.8	%		90.0	%		(3.5	%)		0.8	%		(2.9	%)		(0.2	%)
The Coves at Chesapeake		469	11/20/2006	$	1,175		93.7	%		91.6	%		(1.9	%)		1.9	%		3.4	%		5.2	%
Timbercroft Townhomes		284	7/16/1999	$	894		99.4	%		99.1	%		3.5	%		1.9	%		1.4	%		4.1	%
Top Field		156	10/4/2006	$	1,173		97.7	%		95.9	%		(1.3	%)		(0.5	%)		19.9	%		10.5	%
Village Square Townhomes		370	7/16/1999	$	1,121		94.6	%		94.9	%		(2.1	%)		(7.4	%)		3.1	%		(9.6	%)
Woodholme Manor		177	3/31/2001	$	865		96.2	%		95.5	%		1.1	%		3.8	%		10.8	%		16.9	%

Total Baltimore Region		7,814		$	997		94.4	%		93.7	%		(1.0	%)		(1.5	%)		4.7	%		0.6	%		20.0	%

Boston Region
Gardencrest		696	6/28/2002	$	1,505		94.6	%		96.8	%		0.4	%		(2.2	%)		12.7	%		3.9	%
Highland House		172	5/31/2006	$	1,130		96.9	%		96.8	%		(0.7	%)		1.7	%		1.5	%		4.5	%
Liberty Place		107	6/6/2006	$	1,408		95.4	%		95.5	%		(0.3	%)		1.3	%		1.0	%		3.1	%
Stone Ends		280	2/12/2003	$	1,215		96.7	%		94.9	%		(1.9	%)		(0.3	%)		8.4	%		4.7	%
The Heights at Marlborough		348	9/7/2006	$	1,155		94.3	%		94.6	%		(1.9	%)		(4.5	%)		(4.0	%)		(11.0	%)
The Meadows at Marlborough		264	9/7/2006	$	1,114		95.1	%		96.8	%		(2.5	%)		(4.0	%)		6.0	%		(2.1	%)
The Townhomes of Beverly		204	2/15/2007	$	1,409		96.0	%		91.7	%		(3.7	%)		0.6	%		9.4	%		8.4	%
The Village at Marshfield		276	3/17/2004	$	1,107		97.5	%		93.2	%		(5.0	%)		0.7	%		4.1	%		3.8	%
Westwoods		35	4/30/2007	$	1,192		90.1	%		97.0	%		(7.0	%)		(10.5	%)		(40.9	%)		(52.3	%)

Total Boston Region		2,382		$	1,286		95.4	%		95.4	%		(1.6	%)		(1.6	%)		5.8	%		1.2	%		7.5	%

Chicago Region
Blackhawk		371	10/20/2000	$	846		96.1	%		95.8	%		(5.5	%)		(5.6	%)		34.3	%		36.5	%
Courtyards Village		224	8/29/2001	$	810		98.5	%		95.5	%		(3.9	%)		(1.1	%)		7.8	%		7.1	%
Cypress Place		192	12/27/2000	$	919		98.1	%		96.7	%		(3.8	%)		(4.5	%)		44.4	%		48.0	%
The Colony		783	9/1/1999	$	865		96.0	%		97.2	%		(3.6	%)		(4.5	%)		33.4	%		26.1	%
The New Colonies		672	6/23/1998	$	723		94.9	%		95.3	%		(0.8	%)		(5.6	%)		7.5	%		(3.7	%)

Total Chicago Region		2,242		$	818		96.2	%		96.2	%		(3.3	%)		(4.6	%)		25.6	%		19.8	%		4.5	%

Florida Region
The Hamptons		668	7/7/2004	$	997		93.1	%		95.2	%		(2.6	%)		(6.6	%)		5.3	%		(7.9	%)
Vinings at Hampton Village		168	7/7/2004	$	1,109		96.4	%		95.5	%		(2.0	%)		(0.6	%)		3.5	%		2.5	%

Total Florida Region		836		$	1,020		93.8	%		95.3	%		(2.5	%)		(5.3	%)		4.9	%		(5.6	%)		1.7	%

Long Island, NY Region
Bayview / Colonial		160	11/1/2000	$	1,215		94.3	%		97.2	%		1.8	%		(2.5	%)		0.4	%		(4.4	%)
Cambridge Village		82	3/1/2002	$	1,661		98.3	%		96.8	%		0.2	%		3.1	%		7.1	%		12.7	%
Devonshire Hills		297	7/16/2001	$	1,695		94.6	%		96.3	%		0.7	%		(3.5	%)		6.1	%		(2.0	%)
Hawthorne Court		434	4/4/2002	$	1,372		95.8	%		95.3	%		(1.4	%)		(3.2	%)		(11.5	%)		(13.5	%)
Heritage Square		80	4/4/2002	$	1,702		98.4	%		98.1	%		1.5	%		5.7	%		(3.1	%)		7.7	%
Holiday Square		144	5/31/2002	$	1,174		94.2	%		96.7	%		1.0	%		(1.6	%)		2.6	%		(0.9	%)
Lake Grove Apartments		368	2/3/1997	$	1,371		96.8	%		96.4	%		(3.1	%)		(1.9	%)		1.7	%		(2.0	%)
Mid- Island Estates		232	7/1/1997	$	1,327		96.3	%		97.5	%		1.7	%		(0.1	%)		1.6	%		1.3	%
Sayville Commons		342	7/15/2005	$	1,548		93.6	%		96.9	%		2.1	%		(2.0	%)		1.9	%		(2.1	%)
South Bay Manor		61	9/11/2000	$	1,624		94.6	%		96.7	%		(0.5	%)		(3.5	%)		11.0	%		2.8	%
Southern Meadows		452	6/29/2001	$	1,369		95.4	%		96.9	%		0.1	%		(3.6	%)		2.1	%		(4.8	%)
Stratford Greens		359	3/1/2002	$	1,431		95.6	%		94.9	%		(1.7	%)		(1.7	%)		2.7	%		(0.9	%)
Westwood Village Apts		242	3/1/2002	$	2,270		96.2	%		96.6	%		(4.5	%)		(4.5	%)		4.6	%		(4.4	%)
Woodmont Village Apts		96	3/1/2002	$	1,289		96.4	%		94.1	%		(3.2	%)		5.2	%		9.9	%		17.9	%
Yorkshire Village Apts		40	3/1/2002	$	1,738		97.5	%		96.8	%		(1.4	%)		2.3	%		(7.2	%)		(2.2	%)

Total Long Island Region		3,389		$	1,490		95.6	%		96.4	%		(0.7	%)		(2.1	%)		1.3	%		(2.7	%)		11.8	%

Maine Region
Liberty Commons		120	8/30/2006	$	1,186		97.9	%		98.0	%		(1.7	%)		(1.2	%)		3.6	%		0.0	%
Redbank Village		500	7/7/1998	$	858		97.5	%		94.3	%		(0.5	%)		2.4	%		11.2	%		14.8	%

Total Maine Region		620		$	921		97.6	%		95.2	%		(0.8	%)		1.5	%		9.7	%		10.2	%		1.4	%

New Jersey Region
Barrington Gardens		148	3/1/2005	$	1,122		96.5	%		93.4	%		1.5	%		9.3	%		(21.5	%)		(2.9	%)
Chatham Hill Apartments		308	1/30/2004	$	1,700		93.0	%		93.7	%		(1.6	%)		(1.1	%)		14.8	%		6.7	%
East Hill Gardens		33	7/7/1998	$	1,501		91.7	%		90.1	%		0.5	%		3.5	%		16.0	%		18.4	%
Hackensack Gardens		198	3/1/2005	$	1,052		94.3	%		96.2	%		2.2	%		(0.4	%)		(88.0	%)		(27.3	%)
Jacob Ford Village		270	2/15/2007	$	1,158		95.5	%		96.6	%		4.7	%		6.7	%		4.9	%		20.0	%
Lakeview		106	7/7/1998	$	1,354		95.4	%		94.5	%		0.5	%		0.5	%		(1.7	%)		(0.7	%)
Northwood Apartments		134	1/30/2004	$	1,296		98.9	%		97.1	%		(1.6	%)		2.7	%		(6.3	%)		(0.9	%)
Oak Manor		77	7/7/1998	$	1,743		94.6	%		95.4	%		(2.8	%)		(3.3	%)		16.3	%		7.0	%
Pleasant View		1,142	7/7/1998	$	1,111		96.1	%		94.3	%		(3.7	%)		0.5	%		8.6	%		8.7	%
Pleasure Bay		270	7/7/1998	$	1,012		93.4	%		92.6	%		(6.0	%)		4.1	%		4.6	%		14.6	%
Royal Gardens Apartments		550	5/28/1997	$	1,203		96.7	%		96.8	%		(1.9	%)		(1.8	%)		7.8	%		3.8	%
Wayne Village		275	7/7/1998	$	1,378		96.5	%		97.9	%		(1.0	%)		(2.3	%)		7.2	%		0.6	%
Windsor Realty		67	7/7/1998	$	1,155		90.4	%		94.8	%		(4.5	%)		(10.8	%)		5.5	%		(15.2	%)

Total New Jersey Region		3,578		$	1,222		95.5	%		95.1	%		(1.8	%)		0.4	%		4.1	%		4.1	%		10.6	%

Philadelphia Region
Castle Club		158	3/15/2000	$	946		93.6	%		95.1	%		(0.6	%)		(1.0	%)		1.3	%		(0.7	%)
Chesterfield		247	9/23/1997	$	887		96.6	%		97.6	%		(3.8	%)		(4.5	%)		(0.5	%)		(9.2	%)
Curren Terrace		318	9/23/1997	$	861		93.5	%		95.2	%		(3.5	%)		(0.7	%)		0.2	%		(1.2	%)
Glen Brook		174	7/28/1999	$	818		91.5	%		95.6	%		(0.8	%)		(7.6	%)		(3.6	%)		(21.3	%)
Glen Manor		174	9/23/1997	$	802		92.6	%		95.6	%		(0.7	%)		(4.2	%)		4.1	%		(4.3	%)
Golf Club		399	3/15/2000	$	1,050		94.2	%		94.2	%		(2.8	%)		(3.5	%)		5.9	%		(1.8	%)
Hill Brook Place		274	7/28/1999	$	847		96.6	%		98.2	%		(2.1	%)		(5.3	%)		2.7	%		(8.2	%)
Home Properties of Bryn Mawr		316	3/15/2000	$	1,143		91.4	%		95.3	%		5.7	%		(0.7	%)		(2.6	%)		(3.2	%)
Home Properties of Devon		631	3/15/2000	$	1,078		94.0	%		92.5	%		(3.5	%)		0.4	%		6.8	%		6.1	%
New Orleans Park		442	7/28/1999	$	854		94.2	%		95.0	%		(1.4	%)		(2.7	%)		2.7	%		(2.6	%)
Racquet Club		466	7/7/1998	$	1,025		94.9	%		96.0	%		(1.0	%)		(2.5	%)		2.7	%		(2.4	%)
Racquet Club South		103	5/27/1999	$	878		95.7	%		94.4	%		(3.0	%)		(1.9	%)		(5.5	%)		(9.9	%)
Ridley Brook		244	7/28/1999	$	918		93.5	%		96.9	%		0.6	%		(1.5	%)		5.2	%		3.0	%
Sherry Lake		298	7/23/1998	$	1,147		95.6	%		95.1	%		(3.8	%)		(3.6	%)		9.7	%		0.4	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,116		95.4	%		94.4	%		(0.4	%)		(0.3	%)		11.9	%		9.3	%
The Landings		384	11/25/1996	$	959		96.1	%		95.2	%		(4.1	%)		(1.7	%)		6.9	%		2.7	%
Trexler Park		250	3/15/2000	$	1,035		91.1	%		92.7	%		(3.4	%)		(14.1	%)		8.5	%		(18.4	%)
Trexler Park West		216	8/15/2008	$	1,223		96.3	%		94.0	%		(1.8	%)		(0.1	%)		(3.3	%)		(2.0	%)
William Henry		363	3/15/2000	$	1,071		91.7	%		93.2	%		(5.9	%)		(7.5	%)		5.9	%		(8.9	%)

Total Philadelphia Region		5,603		$	994		94.1	%		94.8	%		(2.2	%)		(3.1	%)		3.7	%		(2.5	%)		13.2	%

Washington, D.C. Region
Braddock Lee		255	3/16/1998	$	1,264		96.9	%		96.8	%		(1.1	%)		(0.2	%)		3.6	%		2.0	%
Cider Mill		864	9/27/2002	$	1,094		96.0	%		94.1	%		(1.4	%)		(4.1	%)		1.9	%		(5.9	%)
Cinnamon Run		511	12/28/2005	$	1,206		93.8	%		95.5	%		1.4	%		(1.4	%)		4.1	%		(0.1	%)
East Meadow		150	8/1/2000	$	1,270		97.0	%		95.2	%		(3.0	%)		0.1	%		1.6	%		1.3	%
Elmwood Terrace		504	6/30/2000	$	910		92.7	%		96.1	%		(1.3	%)		(3.5	%)		(3.5	%)		(10.3	%)
Falkland Chase		450	9/10/2003	$	1,333		95.8	%		91.7	%		(3.5	%)		(0.3	%)		4.2	%		2.0	%
Mount Vernon Square		1,387	12/27/2006	$	1,199		95.0	%		93.9	%		(0.2	%)		0.1	%		6.0	%		3.7	%
Orleans Village		851	11/16/2000	$	1,314		95.6	%		94.7	%		(0.4	%)		2.5	%		2.1	%		5.9	%
Park Shirlington		294	3/16/1998	$	1,279		96.0	%		95.4	%		(0.9	%)		(1.4	%)		10.1	%		5.3	%
Peppertree Farm		879	12/28/2005	$	1,175		92.3	%		94.5	%		1.0	%		(3.9	%)		3.3	%		(4.3	%)
Seminary Hill		296	7/1/1999	$	1,249		97.8	%		96.5	%		(1.5	%)		0.3	%		8.4	%		7.5	%
Seminary Towers		541	7/1/1999	$	1,285		95.9	%		94.1	%		(1.2	%)		(0.6	%)		5.9	%		4.0	%
Tamarron Apartments		132	7/16/1999	$	1,419		97.2	%		94.6	%		(3.6	%)		0.7	%		0.6	%		1.3	%
The Apts at Wellington Trace		240	3/2/2004	$	1,276		95.9	%		96.0	%		(0.9	%)		(1.0	%)		(2.9	%)		(3.0	%)
The Manor - MD		435	8/31/2001	$	1,214		96.8	%		91.5	%		(0.1	%)		5.7	%		6.4	%		14.5	%
The Manor - VA		198	2/19/1999	$	1,018		94.9	%		95.5	%		(2.4	%)		(3.5	%)		2.0	%		(4.8	%)
The Sycamores		185	12/16/2002	$	1,327		97.2	%		96.2	%		(2.7	%)		(3.0	%)		(2.4	%)		(6.2	%)
Virginia Village		344	5/31/2001	$	1,256		97.2	%		96.3	%		0.5	%		2.3	%		2.5	%		6.1	%
West Springfield		244	11/18/2002	$	1,388		97.6	%		94.9	%		(4.4	%)		(1.7	%)		0.6	%		(2.3	%)
Westchester West		345	12/30/2008	$	1,263		92.0	%		n/a			n/a			n/a			n/a			n/a
Woodleaf Apartments		228	3/19/2004	$	1,193		93.0	%		91.9	%		0.4	%		1.1	%		0.5	%		2.0	%

Total Washington, D.C. Region		9,333		$	1,215		95.2	%		94.5	%		(0.8	%)		(0.6	%)		3.5	%		1.3	%		29.3	%

TOTAL OWNED PORTFOLIO		35,797		$	1,130		95.0	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		34,768		$	1,130		95.1	%		94.9	%		(1.4	%)		(1.6	%)		5.2	%		1.1	%

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

December YTD												YTD '09 versus YTD '08
												% Growth
	# of		Date	YTD '09		YTD '09			YTD '08			Rental			Total			Total			Total			YTD '09
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI

Baltimore Region
Bonnie Ridge		960	7/1/1999	$	1,079		92.4	%		93.1	%		1.5	%		0.2	%		(0.7	%)		(0.2	%)
Canterbury Apartments		618	7/16/1999	$	943		94.4	%		94.1	%		0.9	%		(0.7	%)		1.4	%		(0.3	%)
Country Village		344	4/30/1998	$	903		95.7	%		94.8	%		1.1	%		0.5	%		(1.4	%)		(0.2	%)
Dunfield Townhomes		312	11/1/2007	$	1,086		95.8	%		94.4	%		2.8	%		5.3	%		(0.3	%)		8.3	%
Falcon Crest		396	7/16/1999	$	974		93.0	%		92.7	%		0.1	%		(0.7	%)		4.0	%		1.1	%
Fox Hall Apartments		720	3/29/2007	$	821		92.1	%		92.6	%		(2.3	%)		0.1	%		4.0	%		3.9	%
Gateway Village		132	7/16/1999	$	1,277		95.8	%		96.0	%		0.4	%		(0.3	%)		(2.0	%)		(1.5	%)
Heritage Woods		164	10/4/2006	$	1,028		96.5	%		95.6	%		0.7	%		2.1	%		(1.2	%)		2.7	%
Mill Towne Village Apts		384	5/31/2001	$	868		94.1	%		94.4	%		0.7	%		(1.3	%)		(1.7	%)		(3.3	%)
Morningside Heights		1,050	4/30/1998	$	868		92.5	%		92.6	%		(0.9	%)		(1.6	%)		3.6	%		(0.4	%)
Owings Run		504	7/16/1999	$	1,184		95.1	%		95.6	%		0.4	%		0.7	%		0.0	%		1.1	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,161		94.7	%		94.5	%		0.5	%		0.3	%		2.5	%		2.3	%
Saddle Brooke Apartments		468	10/29/2008	$	1,042		91.4	%		n/a			n/a			n/a			n/a			n/a
Selford Townhomes		102	7/16/1999	$	1,291		91.5	%		92.0	%		(0.7	%)		(0.5	%)		(2.6	%)		(2.1	%)
The Coves at Chesapeake		469	11/20/2006	$	1,186		92.7	%		90.7	%		(1.1	%)		1.5	%		(4.7	%)		(0.4	%)
Timbercroft Townhomes		284	7/16/1999	$	884		99.3	%		99.1	%		3.9	%		2.5	%		(0.5	%)		3.8	%
Top Field		156	10/4/2006	$	1,181		96.2	%		95.8	%		1.9	%		3.3	%		2.3	%		6.1	%
Village Square Townhomes		370	7/16/1999	$	1,132		93.8	%		94.7	%		(1.6	%)		(3.5	%)		0.5	%		(5.1	%)
Woodholme Manor		177	3/31/2001	$	858		95.8	%		94.0	%		1.2	%		4.5	%		8.2	%		15.8	%

Total Baltimore Region		7,814		$	1,004		93.8	%		93.8	%		0.3	%		0.2	%		0.8	%		0.8	%		20.0	%

Boston Region
Gardencrest		696	6/28/2002	$	1,507		94.9	%		96.1	%		2.0	%		0.6	%		6.5	%		4.9	%
Highland House		172	5/31/2006	$	1,145		95.9	%		96.5	%		0.4	%		0.6	%		(9.8	%)		(6.2	%)
Liberty Place		107	6/6/2006	$	1,408		96.5	%		95.3	%		0.7	%		1.8	%		(1.6	%)		1.9	%
Stone Ends		280	2/12/2003	$	1,223		96.6	%		94.9	%		(0.7	%)		1.3	%		1.3	%		2.9	%
The Heights at Marlborough		348	9/7/2006	$	1,166		95.0	%		95.8	%		0.9	%		0.5	%		(10.1	%)		(6.8	%)
The Meadows at Marlborough		264	9/7/2006	$	1,131		95.9	%		96.5	%		(0.9	%)		(1.8	%)		(7.2	%)		(9.4	%)
The Townhomes of Beverly		204	2/15/2007	$	1,437		95.5	%		94.2	%		(0.5	%)		0.4	%		2.3	%		2.4	%
The Village at Marshfield		276	3/17/2004	$	1,131		95.8	%		94.1	%		(2.9	%)		(0.4	%)		(2.9	%)		(2.3	%)
Westwoods		35	4/30/2007	$	1,242		93.3	%		96.9	%		(0.3	%)		(4.5	%)		(18.4	%)		(23.2	%)

Total Boston Region		2,382		$	1,298		95.5	%		95.6	%		0.3	%		0.3	%		(1.1	%)		(0.3	%)		7.5	%

Chicago Region
Blackhawk		371	10/20/2000	$	872		95.8	%		95.7	%		(1.9	%)		(3.1	%)		13.0	%		10.3	%
Courtyards Village		224	8/29/2001	$	826		97.3	%		97.3	%		(0.3	%)		(1.7	%)		5.0	%		1.7	%
Cypress Place		192	12/27/2000	$	938		97.3	%		97.2	%		(1.3	%)		(1.3	%)		15.2	%		16.1	%
The Colony		783	9/1/1999	$	882		95.5	%		97.1	%		(1.6	%)		(2.8	%)		10.2	%		4.3	%
The New Colonies		672	6/23/1998	$	726		95.5	%		95.6	%		0.4	%		(2.9	%)		8.4	%		2.3	%

Total Chicago Region		2,242		$	833		95.9	%		96.5	%		(1.0	%)		(2.6	%)		10.3	%		5.4	%		4.2	%

Florida Region
The Hamptons		668	7/7/2004	$	1,007		94.2	%		94.6	%		(2.7	%)		(6.5	%)		1.8	%		(11.1	%)
Vinings at Hampton Village		168	7/7/2004	$	1,115		95.5	%		94.3	%		(2.4	%)		0.3	%		4.2	%		5.5	%

Total Florida Region		836		$	1,029		94.5	%		94.6	%		(2.6	%)		(5.0	%)		2.3	%		(7.8	%)		1.7	%

Long Island, NY Region
Bayview / Colonial		160	11/1/2000	$	1,215		94.8	%		95.3	%		2.1	%		1.5	%		1.6	%		4.4	%
Cambridge Village		82	3/1/2002	$	1,667		98.1	%		98.0	%		1.5	%		3.6	%		(0.9	%)		5.9	%
Devonshire Hills		297	7/16/2001	$	1,679		96.1	%		96.7	%		(1.0	%)		(1.3	%)		(1.7	%)		(2.8	%)
Hawthorne Court		434	4/4/2002	$	1,369		96.5	%		96.2	%		(1.7	%)		(1.4	%)		(2.2	%)		(4.5	%)
Heritage Square		80	4/4/2002	$	1,682		96.1	%		97.3	%		1.2	%		0.5	%		(6.7	%)		(4.5	%)
Holiday Square		144	5/31/2002	$	1,178		95.2	%		96.7	%		1.6	%		(0.3	%)		(4.9	%)		(4.0	%)
Lake Grove Apartments		368	2/3/1997	$	1,377		96.4	%		95.7	%		(1.5	%)		0.8	%		(2.9	%)		(0.7	%)
Mid- Island Estates		232	7/1/1997	$	1,320		97.1	%		96.2	%		0.5	%		2.6	%		(6.1	%)		(0.3	%)
Sayville Commons		342	7/15/2005	$	1,538		95.6	%		95.4	%		1.9	%		2.4	%		(2.9	%)		2.2	%
South Bay Manor		61	9/11/2000	$	1,618		96.0	%		94.2	%		(0.7	%)		(0.0	%)		2.6	%		2.1	%
Southern Meadows		452	6/29/2001	$	1,367		95.9	%		95.4	%		0.7	%		1.5	%		(2.0	%)		1.1	%
Stratford Greens		359	3/1/2002	$	1,428		96.3	%		96.1	%		(1.2	%)		(1.5	%)		4.8	%		1.0	%
Westwood Village Apts		242	3/1/2002	$	2,321		95.6	%		97.1	%		0.2	%		(0.5	%)		(2.5	%)		(2.6	%)
Woodmont Village Apts		96	3/1/2002	$	1,282		96.4	%		93.7	%		(3.8	%)		3.6	%		(3.0	%)		3.9	%
Yorkshire Village Apts		40	3/1/2002	$	1,751		96.6	%		97.5	%		1.6	%		1.3	%		(1.4	%)		1.1	%

Total Long Island Region		3,389		$	1,490		96.1	%		96.1	%		(0.1	%)		0.4	%		(1.7	%)		(0.6	%)		12.0	%

Maine Region
Liberty Commons		120	8/30/2006	$	1,187		97.2	%		96.7	%		0.7	%		2.3	%		(1.5	%)		2.7	%
Redbank Village		500	7/7/1998	$	861		96.4	%		94.9	%		1.4	%		1.9	%		4.3	%		7.1	%

Total Maine Region		620		$	924		96.6	%		95.3	%		1.2	%		2.0	%		3.1	%		5.8	%		1.4	%

New Jersey Region
Barrington Gardens		148	3/1/2005	$	1,115		95.6	%		95.8	%		4.4	%		4.7	%		(15.7	%)		(4.5	%)
Chatham Hill Apartments		308	1/30/2004	$	1,708		93.8	%		94.7	%		(0.8	%)		(1.2	%)		7.2	%		2.1	%
East Hill Gardens		33	7/7/1998	$	1,481		94.3	%		95.3	%		(1.3	%)		(2.6	%)		(1.9	%)		(5.4	%)
Hackensack Gardens		198	3/1/2005	$	1,058		92.4	%		93.9	%		4.3	%		3.1	%		(5.4	%)		1.0	%
Jacob Ford Village		270	2/15/2007	$	1,139		95.8	%		94.9	%		4.1	%		5.0	%		(0.8	%)		8.6	%
Lakeview		106	7/7/1998	$	1,354		94.0	%		96.2	%		0.7	%		(1.7	%)		(1.7	%)		(4.3	%)
Northwood Apartments		134	1/30/2004	$	1,309		96.9	%		95.2	%		(0.1	%)		2.5	%		(0.8	%)		4.2	%
Oak Manor		77	7/7/1998	$	1,763		94.8	%		96.4	%		(1.0	%)		(2.1	%)		3.9	%		(1.0	%)
Pleasant View		1,142	7/7/1998	$	1,132		94.0	%		93.9	%		(2.1	%)		(0.5	%)		(3.9	%)		(3.7	%)
Pleasure Bay		270	7/7/1998	$	1,038		93.6	%		93.1	%		(3.6	%)		(1.0	%)		2.3	%		0.3	%
Royal Gardens Apartments		550	5/28/1997	$	1,217		95.9	%		95.6	%		(1.0	%)		(0.3	%)		0.4	%		(0.3	%)
Wayne Village		275	7/7/1998	$	1,385		96.4	%		96.2	%		0.1	%		0.6	%		1.8	%		2.1	%
Windsor Realty		67	7/7/1998	$	1,182		93.2	%		95.5	%		(1.1	%)		(3.1	%)		1.9	%		(4.0	%)

Total New Jersey Region		3,578		$	1,234		94.7	%		94.8	%		(0.5	%)		0.2	%		(0.9	%)		(0.4	%)		10.5	%

Philadelphia Region
Castle Club		158	3/15/2000	$	951		94.5	%		94.1	%		0.4	%		1.3	%		(0.3	%)		2.3	%
Chesterfield		247	9/23/1997	$	905		96.2	%		94.8	%		(2.0	%)		(0.9	%)		(3.7	%)		(5.2	%)
Curren Terrace		318	9/23/1997	$	879		93.7	%		93.6	%		(2.6	%)		(0.1	%)		0.1	%		(0.1	%)
Glen Brook		174	7/28/1999	$	823		91.3	%		92.9	%		(0.1	%)		(3.9	%)		(1.1	%)		(10.3	%)
Glen Manor		174	9/23/1997	$	802		94.6	%		95.3	%		0.1	%		(0.8	%)		1.5	%		(0.0	%)
Golf Club		399	3/15/2000	$	1,068		93.9	%		94.6	%		0.7	%		0.5	%		0.8	%		1.4	%
Hill Brook Place		274	7/28/1999	$	854		95.5	%		95.6	%		(2.0	%)		(2.5	%)		(2.4	%)		(7.8	%)
Home Properties of Bryn Mawr		316	3/15/2000	$	1,121		91.4	%		94.2	%		5.6	%		0.2	%		(1.1	%)		(0.6	%)
Home Properties of Devon		631	3/15/2000	$	1,093		93.0	%		93.0	%		(1.7	%)		(1.3	%)		0.0	%		(2.2	%)
New Orleans Park		442	7/28/1999	$	862		94.4	%		94.7	%		(0.0	%)		(1.8	%)		(2.2	%)		(5.6	%)
Racquet Club		466	7/7/1998	$	1,028		95.4	%		95.9	%		(0.4	%)		(2.2	%)		(2.3	%)		(5.6	%)
Racquet Club South		103	5/27/1999	$	890		95.0	%		95.2	%		(1.0	%)		(2.4	%)		(7.4	%)		(11.6	%)
Ridley Brook		244	7/28/1999	$	917		94.6	%		95.3	%		1.1	%		1.8	%		(0.3	%)		3.3	%
Sherry Lake		298	7/23/1998	$	1,171		94.9	%		95.4	%		(1.4	%)		(1.9	%)		0.1	%		(3.0	%)
The Brooke at Peachtree Village		146	8/15/2005	$	1,108		97.0	%		96.2	%		0.2	%		0.6	%		1.9	%		2.4	%
The Landings		384	11/25/1996	$	981		95.7	%		95.9	%		(1.2	%)		(0.4	%)		(1.6	%)		(1.8	%)
Trexler Park		250	3/15/2000	$	1,048		92.5	%		93.9	%		(1.1	%)		(8.1	%)		(0.1	%)		(14.3	%)
Trexler Park West		216	8/15/2008	$	1,235		94.8	%		n/a			n/a			n/a			n/a			n/a
William Henry		363	3/15/2000	$	1,105		92.5	%		95.0	%		(1.5	%)		(5.4	%)		4.1	%		(6.5	%)

Total Philadelphia Region		5,603		$	1,005		94.1	%		94.7	%		(0.5	%)		(1.6	%)		(0.6	%)		(3.4	%)		13.5	%

Washington, D.C. Region
Braddock Lee		255	3/16/1998	$	1,273		97.2	%		96.2	%		0.6	%		1.3	%		0.4	%		2.4	%
Cider Mill		864	9/27/2002	$	1,102		95.0	%		95.4	%		0.7	%		(1.1	%)		(3.4	%)		(4.6	%)
Cinnamon Run		511	12/28/2005	$	1,194		95.2	%		96.4	%		1.5	%		(0.2	%)		1.5	%		0.4	%
East Meadow		150	8/1/2000	$	1,282		98.2	%		96.0	%		(2.0	%)		0.2	%		1.8	%		1.4	%
Elmwood Terrace		504	6/30/2000	$	917		92.5	%		93.9	%		0.6	%		0.8	%		(0.6	%)		1.0	%
Falkland Chase		450	9/10/2003	$	1,349		93.9	%		93.3	%		(0.7	%)		(0.7	%)		(1.9	%)		(2.0	%)
Mount Vernon Square		1,387	12/27/2006	$	1,196		94.9	%		95.2	%		1.9	%		0.6	%		2.2	%		2.2	%
Orleans Village		851	11/16/2000	$	1,321		95.3	%		95.7	%		1.4	%		1.1	%		(3.4	%)		(0.3	%)
Park Shirlington		294	3/16/1998	$	1,290		96.2	%		96.4	%		2.1	%		1.8	%		3.4	%		5.7	%
Peppertree Farm		879	12/28/2005	$	1,174		92.6	%		93.7	%		2.3	%		(0.1	%)		(0.1	%)		(0.2	%)
Seminary Hill		296	7/1/1999	$	1,249		97.3	%		96.5	%		1.2	%		1.0	%		1.2	%		2.9	%
Seminary Towers		541	7/1/1999	$	1,295		94.9	%		94.8	%		0.9	%		0.3	%		0.2	%		0.7	%
Tamarron Apartments		132	7/16/1999	$	1,444		96.6	%		94.8	%		(0.6	%)		1.9	%		(0.3	%)		2.8	%
The Apts at Wellington Trace		240	3/2/2004	$	1,269		96.7	%		92.2	%		(0.7	%)		5.6	%		(1.7	%)		7.7	%
The Manor - MD		435	8/31/2001	$	1,211		95.8	%		91.8	%		2.4	%		5.8	%		(2.2	%)		8.2	%
The Manor - VA		198	2/19/1999	$	1,029		95.9	%		95.6	%		(1.1	%)		(0.1	%)		(1.5	%)		(1.4	%)
The Sycamores		185	12/16/2002	$	1,341		97.3	%		96.1	%		(1.1	%)		0.2	%		(3.2	%)		(1.4	%)
Virginia Village		344	5/31/2001	$	1,259		97.8	%		97.2	%		2.0	%		2.6	%		0.8	%		5.1	%
West Springfield		244	11/18/2002	$	1,413		96.8	%		96.7	%		(1.4	%)		(1.1	%)		(5.0	%)		(4.0	%)
Westchester West		345	12/30/2008	$	1,278		92.3	%		n/a			n/a			n/a			n/a			n/a
Woodleaf Apartments		228	3/19/2004	$	1,181		93.5	%		93.1	%		2.1	%		2.8	%		(1.9	%)		3.4	%

Total Washington, D.C. Region		9,333		$	1,219		95.1	%		95.0	%		1.0	%		0.8	%		(0.6	%)		1.0	%		29.2	%

TOTAL OWNED PORTFOLIO		35,797		$	1,137		94.8	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		34,768		$	1,137		94.9	%		95.0	%		0.1	%		(0.1	%)		0.2	%		0.0	%

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

Physical Occupancy Comparison By Region - Core Properties



Sequential Comparison
Fourth Quarter 2009 vs. Third Quarter 2009

Region	% Units			4Q '09			3Q '09			Variance

Washington, D.C.		25.9	%		95.4	%		95.5	%		(0.1	%)
Baltimore		21.1	%		94.4	%		94.0	%		0.4	%
New Jersey, Long Island		20.0	%		95.5	%		95.7	%		(0.2	%)
Philadelphia		15.5	%		94.0	%		93.7	%		0.3	%
Boston		6.9	%		95.4	%		95.8	%		(0.4	%)
Chicago		6.4	%		96.2	%		96.7	%		(0.5	%)
Florida		2.4	%		93.8	%		93.8	%		0.0	%
Other		1.8	%		97.6	%		97.8	%		(0.2	%)

Total Core		100.0	%		95.1	%		95.1	%		0.0	%



Year over Year Comparison
Fourth Quarter 2009 vs. Fourth Quarter 2008

Region	% Units			4Q '09			4Q '08			Variance

Washington, D.C.		25.9	%		95.4	%		94.5	%		0.9	%
Baltimore		21.1	%		94.4	%		93.7	%		0.7	%
New Jersey, Long Island		20.0	%		95.5	%		95.7	%		(0.2	%)
Philadelphia		15.5	%		94.0	%		94.8	%		(0.8	%)
Boston		6.9	%		95.4	%		95.4	%		0.0	%
Chicago		6.4	%		96.2	%		96.2	%		0.0	%
Florida		2.4	%		93.8	%		95.3	%		(1.5	%)
Other		1.8	%		97.6	%		95.2	%		2.4	%

Total Core		100.0	%		95.1	%		94.9	%		0.2	%



December vs. Quarter Comparison

Region	% Units			Dec '09			4Q '09			Variance

Washington, D.C.		25.9	%		95.2	%		95.4	%		(0.2	%)
Baltimore		21.1	%		94.2	%		94.4	%		(0.2	%)
New Jersey, Long Island		20.0	%		95.0	%		95.5	%		(0.5	%)
Philadelphia		15.5	%		93.8	%		94.0	%		(0.2	%)
Boston		6.9	%		94.6	%		95.4	%		(0.8	%)
Chicago		6.4	%		95.6	%		96.2	%		(0.6	%)
Florida		2.4	%		93.7	%		93.8	%		(0.1	%)
Other		1.8	%		97.6	%		97.6	%		0.0	%

Total Core		100.0	%		94.8	%		95.1	%		(0.3	%)

Net Operating Results - Core Properties

Sequential Results
Fourth Quarter 2009 vs. Third Quarter 2009
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI

Washington, D.C.		25.9	%		(0.3	%)		1.3	%		(1.0	%)		1.4	%
Baltimore		21.1	%		0.1	%		0.6	%		(0.4	%)		0.8	%
New Jersey, Long Island		20.0	%		(0.8	%)		0.5	%		(7.7	%)		(4.3	%)
Philadelphia		15.5	%		(0.5	%)		1.9	%		(7.0	%)		(2.1	%)
Boston		6.9	%		(1.2	%)		(1.8	%)		(5.6	%)		(6.0	%)
Chicago		6.4	%		(1.9	%)		(1.6	%)		17.5	%		14.5	%
Florida		2.4	%		0.3	%		0.0	%		5.3	%		6.4	%
Other		1.8	%		(0.2	%)		0.1	%		2.7	%		1.8	%

Total Core		100.0	%		(0.5	%)		0.7	%		(2.4	%)		(0.5	%)



Year Over Year Results
Fourth Quarter 2009 vs. Fourth Quarter 2008
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI

Washington, D.C.		25.9	%		0.3	%		(0.6	%)		3.5	%		1.3	%
Baltimore		21.1	%		(0.6	%)		(1.5	%)		4.7	%		0.6	%
New Jersey, Long Island		20.0	%		(1.1	%)		(0.9	%)		2.6	%		0.4	%
Philadelphia		15.5	%		(3.4	%)		(3.2	%)		4.0	%		(2.6	%)
Boston		6.9	%		(1.6	%)		(1.6	%)		5.8	%		1.2	%
Chicago		6.4	%		(3.3	%)		(4.6	%)		25.6	%		19.8	%
Florida		2.4	%		(3.7	%)		(5.3	%)		4.9	%		(5.6	%)
Other		1.8	%		1.7	%		1.4	%		9.8	%		9.3	%

Total Core		100.0	%		(1.1	%)		(1.6	%)		5.2	%		1.1	%

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

Resident Statistics


Top Six Reasons for Moveouts - Owned Communities
	4Q '09			3Q '09			2Q '09			1Q '09			4Q '08			3Q '08			2Q '08			1Q '08			Year '09			Year '08			Year '07			Year '06

Home purchase		14.8	%		12.4	%		12.2	%		9.9	%		11.7	%		12.4	%		12.6	%		11.1	%		12.0	%		12.0	%		15.5	%		18.5	%
Eviction/skip		14.8	%		12.5	%		12.2	%		16.6	%		15.1	%		13.8	%		13.0	%		16.4	%		14.6	%		14.6	%		14.6	%		14.2	%
Employment related		14.7	%		14.0	%		16.4	%		17.7	%		15.6	%		14.5	%		15.2	%		15.6	%		15.2	%		15.2	%		16.1	%		15.6	%
Transfer w/in HME		13.6	%		11.8	%		12.4	%		13.8	%		14.2	%		9.8	%		8.2	%		10.6	%		10.7	%		10.7	%		8.3	%		8.2	%
Location convenience/ apartment size		10.4	%		11.6	%		10.0	%		8.3	%		9.0	%		10.0	%		11.0	%		11.0	%		10.3	%		10.3	%		13.7	%		12.4	%
Rent level		9.7	%		10.0	%		10.0	%		10.2	%		9.2	%		9.6	%		10.2	%		9.1	%		10.0	%		9.5	%		8.0	%		8.4	%


Traffic - Core													Turnover - Core
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	4Q '09			YTD '09			4Q '09			YTD '09
	vs.			vs.			vs.			vs.
	4Q '08			YTD '08			4Q '08			YTD '08			4Q '09			4Q '08			YTD '09			YTD '08

Region
Baltimore		-2	%		-2	%		14	%		2	%		9.1	%		9.0	%		41.0	%		43.3	%
Boston		17	%		4	%		23	%		2	%		9.4	%		8.7	%		40.4	%		40.0	%
Chicago		20	%		5	%		-3	%		-1	%		11.2	%		12.0	%		47.8	%		50.3	%
Florida		-20	%		-27	%		4	%		0	%		12.0	%		11.7	%		49.3	%		46.8	%
Long Island		15	%		3	%		10	%		-8	%		8.4	%		8.5	%		35.0	%		35.9	%
Maine		-12	%		-7	%		35	%		1	%		9.7	%		9.5	%		43.9	%		46.5	%
New Jersey		-2	%		4	%		-7	%		-3	%		8.1	%		9.0	%		36.2	%		37.7	%
Philadelphia		14	%		4	%		8	%		-10	%		9.6	%		9.6	%		43.8	%		44.4	%
Washington, D.C.		0	%		2	%		0	%		-10	%		9.0	%		9.4	%		37.2	%		39.7	%

Total Core		4	%		1	%		6	%		-5	%		9.2	%		9.4	%		40.1	%		41.6	%


Bad Debt as % of Rent and Utility Recovery - Core

	4Q '09			4Q '08			YTD '09			YTD '08
		1.24	%		1.31	%		1.24	%		1.22	%

Net Operating Income Detail - Core Properties

($ in thousands, except per unit data)

							Qtr			%									YTD			%
	4Q '09			4Q '08			Variance			Variance			YTD '09			YTD '08			Variance			Variance

Rent	$	110,655		$	111,862		$	(1,207	)		(1.1	%)	$	444,623		$	444,264		$	359			0.1	%
Utility recovery		5,222			5,624			(402	)		(7.1	%)		19,425			20,088			(663	)		(3.3	%)
Rent including recoveries		115,877			117,486			(1,609	)		(1.4	%)		464,048			464,352			(304	)		(0.1	%)
Other income		5,037			5,363			(326	)		(6.1	%)		20,444			20,558			(114	)		(0.6	%)

Total income		120,914			122,849			(1,935	)		(1.6	%)		484,492			484,910			(418	)		(0.1	%)
Operating & maintenance		(50,118	)		(52,856	)		2,738			5.2	%		(201,702	)		(202,129	)		427			0.2	%

Net Core NOI	$	70,796		$	69,993		$	803			1.1	%	$	282,790		$	282,781		$	9			0.0	%


Physical Occupancy %		95.1	%		94.9	%		0.2	%					94.9	%		95.0	%		(0.1	%)

Weighted Avg Rent per Unit	$	1,130		$	1,146		$	(16	)		(1.4	%)	$	1,137		$	1,136		$	1			0.1	%

Seasonality Factor for NAV Calculation

To annualize net operating income in order to calculate a net asset value, the seasonality factor to apply to the current quarter's effective NOI run rate is 25%. This will adjust for the typical seasonal variability in NOI for each quarter.

Operating Expense Detail - Core Properties
($ in thousands)
					Qtr			%							YTD			%
	4Q '09		4Q '08		Variance			Variance			YTD '09		YTD '08		Variance			Variance

Electricity	$	1,887	$	2,027	$	140			6.9	%	$	8,698	$	8,402	$	(296	)		(3.5	%)

Gas		5,190		6,046		856			14.2	%		18,356		19,290		934			4.8	%

Water & sewer		3,665		3,461		(204	)		(5.9	%)		14,076		13,563		(513	)		(3.8	%)

Repairs & maintenance		7,166		7,869		703			8.9	%		29,448		29,540		92			0.3	%

Personnel expense		10,227		11,028		801			7.3	%		45,172		43,903		(1,269	)		(2.9	%)

Advertising		1,017		1,063		46			4.3	%		4,100		4,341		241			5.6	%

Legal & professional		450		555		105			18.9	%		1,560		1,786		226			12.7	%

Office & telephone		1,228		1,442		214			14.8	%		5,599		5,852		253			4.3	%

Property insurance		3,323		3,672		349			9.5	%		9,681		12,060		2,379			19.7	%

Real estate taxes		11,177		11,101		(76	)		(0.7	%)		46,255		44,444		(1,811	)		(4.1	%)

Snow		478		174		(304	)		(174.7	%)		1,181		696		(485	)		(69.7	%)

Trash		848		809		(39	)		(4.8	%)		3,379		3,265		(114	)		(3.5	%)

Property management G & A		3,462		3,609		147			4.1	%		14,197		14,987		790			5.3	%

Total Core	$	50,118	$	52,856	$	2,738			5.2	%	$	201,702	$	202,129	$	427			0.2	%

Discontinued Operations

($ in thousands)

The operating results of discontinued operations are summarized as follows for the three and twelve months ended December 31, 2009 and 2008:

	4Q '09		4Q '08		Year '09			Year '08
Revenues:
Rental income	$	388	$	5,241	$	5,314		$	22,821
Property other income		54		584		545			2,294
Total revenues		442		5,825		5,859			25,115
Expenses:
Operating and maintenance		229		2,783		2,723			11,641
Interest expense (1)		-		635		4,497			4,121
Depreciation and amortization		64		1,218		1,240			5,410
Total expenses		293		4,636		8,460			21,172
Income (loss) from discontinued operations	$	149	$	1,189	$	(2,601	)	$	3,943

(1)	Includes prepayment penalties of $4,927 and $1,384 for the twelve months ended 2009 and 2008, respectively.

Summary Of Recent Acquisitions

($ in millions, except per unit data)

Wgtd. Avg.

Purchase

# of

CAP

Purchase

Price Per

Community

Market

State

Date

Units

Rate (1)

Price

Unit

2009 Acquisitions

Wgtd. Avg.

Purchase

# of

CAP

Purchase

Price Per

Community

Market

State

Date

Units

Rate (1)

Price

Unit

2008 Acquisitions

Saddle Brooke

Baltimore

10/29/2008

468

6.7

51.5

109,955

Westchester West

NoVA/DC

12/30/2008

345

6.9

49.0

141,939

Total 2008

813

6.8

100.4

123,528

Total 2009 and 2008 Acquisitions

813

6.8

100.4

123,528

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

Summary Of Recent Sales
($ in millions, except per unit data)
											Wtd. Avg.
			Sale	# of		CAP			Sales		Price Per
Community	Market	State	Date	Units		Rate (1)			Price		Unit
2009 Sales
Regency Club	New Jersey	NJ	1/30/2009		372		7.3	%	$	39.9	$	107,277
Lakeshore Villas	Hudson Valley	NY	1/30/2009		152		8.4	%		11.5		75,631
Sunset Gardens	Hudson Valley	NY	1/30/2009		217		8.0	%		16.4		75,631
Home Properties of Newark	Philadelphia	PA	10/1/2009		432		8.4	%		30.0		69,444
Beechwood Gardens	Philadelphia	PA	12/16/2009		160		7.6	%		10.5		65,625
			Total 2009		1,333		7.8	%	$	108.3	$	81,256

											Wtd. Avg.
			Sale	# of		CAP			Sales		Price Per
Community	Market	State	Date	Units		Rate (1)			Price		Unit
2008 Sales
Carriage Hill Apartments	Hudson Valley	NY	1/31/2008		140		6.7	%	$	15.1	$	107,750
Long Island: 5 Properties (2)	Long Island	NY	2/1/2008		363		6.1	%		42.0		115,749
Mill Company Gardens	Portland	ME	2/21/2008		95		6.3	%		7.4		77,747
Village Square	Philadelphia	PA	10/15/2008		128		6.5	%		13.1		102,289
Valley View	Philadelphia	PA	12/22/2008		177		8.8	%		10.5		59,073
Westchester Portfolio: 6 Properties (3)	Hudson Valley	NY	12/30/2008		324		7.3	%		36.4		112,404
			Total 2008		1,227		6.8	%	$	124.5	$	101,431

	Total 2009 and 2008 Sales				2,560		7.3	%	$	232.8	$	90,926

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

(2)	Consists of East Winds Apartments, Coventry Village, Maple Tree, Terry Apartments and Rider Terrace.

(3)	Consists of Bari Manor, Hudson View Estates, Sherwood Townhomes, Sparta Green, Sherwood House and Patricia Apartments.

Breakdown Of Owned Units By Market

		Net							Net
		Acquired/							Acquired/
		Developed		As of		12/31/2008			Developed		As of		Current
Market	State	in 2008		12/31/2008		% of Units			in 2009		12/31/2009		% of Units
Suburban Washington, D.C.	DC/MD/VA		345		9,333		25.14	%		0		9,333		26.07	%
Baltimore	MD		468		7,814		21.04	%		0		7,814		21.83	%
Suburban New York City	NY/NJ		-827		7,708		20.76	%		-741		6,967		19.46	%
Philadelphia	PA		-257		6,195		16.68	%		-592		5,603		15.65	%
Boston	MA		0		2,382		6.42	%		0		2,382		6.65	%
Chicago	IL		0		2,242		6.04	%		0		2,242		6.26	%
Florida	FL		0		836		2.25	%		0		836		2.34	%
Portland	ME		-95		620		1.67	%		0		620		1.73	%

Total			-366		37,130		100.0	%		-1,333		35,797		100.0	%

Debt Summary Schedule
			INTEREST		12/31/09			MATURITY	YEARS TO
PROPERTY		LENDER	RATE		BALANCE			DATE	MATURITY

FIXED RATE SECURED

Multi-Property		M&T Realty - Freddie Mac		7.575		45,400,000		05/01/10		0.33
East Meadow Apartments - 2nd		M&T Realty - Freddie Mac		5.550		5,933,601		05/01/10		0.33
Selford Townhomes - 2nd		M&T Realty - Freddie Mac		5.550		4,536,477		05/01/10		0.33
Seminary Hill - 2nd		M&T Realty - Freddie Mac		5.550		10,240,993		05/01/10		0.33
South Bay/Woodmont - 2nd		M&T Realty - Freddie Mac		5.550		5,628,810		05/01/10		0.33
Tamarron Apartments - 2nd		M&T Realty - Freddie Mac		5.550		7,584,391		05/01/10		0.33
The Manor (VA) - 2nd		M&T Realty - Freddie Mac		5.550		6,636,588		05/01/10		0.33
Home Properties of Devon		Prudential - Fannie Mae		7.500		28,892,000		10/01/10		0.75
Trexler Park		Prudential - Fannie Mae		7.500		10,140,000		10/01/10		0.75
Multi-Property		Prudential - Fannie Mae		7.250		32,978,000		01/01/11		1.00
Multi-Property		Prudential - Fannie Mae		6.360		8,141,000		01/01/11		1.00
Multi-Property		Prudential - Fannie Mae		6.160		58,881,000		01/01/11		1.00
Orleans Village - 1st		Prudential - Fannie Mae		6.815		43,745,000		01/01/11		1.00
Orleans Village - 2nd		Prudential - Fannie Mae		5.360		22,248,000		01/01/11		1.00
Sherry Lake		Capmark - Freddie Mac		5.180		18,305,046		01/01/11		1.00
Bayview Apartments		M&T Realty - Freddie Mac		4.950		10,882,590		03/01/11		1.16
New Orleans/Arbor Crossing		Prudential - Fannie Mae		4.860		18,146,158		03/01/11		1.16
Racquet Club East - 1st		Prudential - Fannie Mae		6.875		20,171,560		04/01/11		1.25
Racquet Club East - 2nd		Prudential - Fannie Mae		5.490		9,903,080		04/01/11		1.25
Timbercroft Townhomes 1 - 1st		Capmark - HUD		8.500		173,337		05/01/11		1.33
The Meadows at Marlborough	(1)	Prudential - Fannie Mae		5.500		19,851,708		08/01/11		1.58
Lake Grove - 1st		Prudential - Fannie Mae		6.540		24,554,721		12/01/11		1.92
Lake Grove - 2nd		Prudential - Fannie Mae		5.510		10,620,508		12/01/11		1.92
Mount Vernon Square	(1)	KeyBank RE Cap-Fannie Mae		5.490		85,677,472		01/01/12		2.00
Multi-Property Notes Pay		Seller Financing		4.000		249,499		02/01/12		2.09
Timbercroft III - 1st		Capmark - HUD		8.000		325,393		02/01/12		2.09
Castle Club Apartments		NorthMarq - Freddie Mac		7.080		6,317,740		05/01/12		2.33
Gateway Village		Prudential - Fannie Mae		6.885		6,509,894		05/01/12		2.33
The New Colonies		Prudential - Fannie Mae		7.110		18,736,798		06/01/12		2.42
Woodholme Manor		Prudential - Fannie Mae		7.165		3,512,848		07/01/12		2.50
Liberty Place	(1)	CW Capital - Fannie Mae		5.710		6,044,012		11/01/12		2.84
Hackensack Gardens - 1st		JPMorgan Chase - Fannie Mae		5.260		4,475,880		03/01/13		3.17
Hackensack Gardens - 2nd		JPMorgan Chase - Fannie Mae		5.440		4,345,621		03/01/13		3.17
Barrington Gardens		Wachovia - Freddie Mac		4.960		11,181,141		04/01/13		3.25
Topfield Apartments		M&T Realty-Fannie Mae		5.300		6,012,047		04/01/13		3.25
Canterbury Apartments - 1st		M&T Realty-Fannie Mae		5.020		27,356,610		05/01/13		3.33
Canterbury Apartments - 2nd		M&T Realty-Fannie Mae		6.460		16,837,581		05/01/13		3.33
Multi-Property		Prudential - Fannie Mae		6.475		100,000,000		08/31/13		3.67
Heritage Woods Apts	(1)	Oak Grove Capital-Fannie Mae		5.290		4,847,036		09/01/13		3.67
Saddle Brook Apts. - 1st	(1)	Wells Fargo - Fannie Mae		5.840		27,206,172		11/01/13		3.84
Saddle Brook Apts. - 2nd	(1)	Wells Fargo - Fannie Mae		6.290		3,231,324		11/01/13		3.84
Falkland Chase		Centerline - Fannie Mae		5.480		12,236,284		04/01/14		4.25
The Apts. At Wellington Trace		M&T Realty - Freddie Mac		5.520		24,379,882		04/01/14		4.25
Hawthorne Court		Centerline - Fannie Mae		5.270		35,250,391		07/01/14		4.50
Curren Terrace - 1st		M&T Realty - Freddie Mac		5.360		13,746,621		10/01/14		4.75
Curren Terrace - 2nd		M&T Realty - Freddie Mac		5.090		9,958,024		10/01/14		4.75
Westchester West - 1st	(1)	Deutsche Bank - Freddie		6.150		26,950,422		03/01/15		5.17
Westchester West - 2nd	(1)	Deutsche Bank - Freddie		6.640		7,506,557		03/01/15		5.17
Stratford Greens		Capital One Bank		5.750		31,582,765		07/01/15		5.50
Sayville Commons		M&T Realty - Freddie Mac		5.000		40,565,237		08/01/15		5.59
Cypress Place Apartments		Prudential - Fannie Mae		6.555		10,324,433		11/01/15		5.84
Golf Club Apartments		Prudential - Fannie Mae		6.380		33,306,127		11/01/15		5.84
Northwood Apartments		M&T Realty - Freddie Mac		5.500		10,675,000		12/01/15		5.92
Cinnamon Run - 1st		M&T Realty - Freddie Mac		5.250		50,851,749		01/01/16		6.01
Cinnamon Run - 2nd		M&T Realty - Freddie Mac		5.550		5,267,452		01/01/16		6.01
Peppertree Farm - 1st		M&T Realty - Freddie Mac		5.250		78,270,856		01/01/16		6.01
Peppertree Farm - 2nd		M&T Realty - Freddie Mac		5.550		1,915,433		01/01/16		6.01
The Hamptons/Vinings at Hamptons		Prudential - Fannie Mae		5.565		51,775,031		02/01/16		6.09
Devonshire - 1st		Wachovia - Fannie Mae		5.600		37,877,292		04/01/16		6.25
Devonshire - 2nd		Wachovia - Fannie Mae		6.235		8,440,271		04/01/16		6.25
Mid-Island		Prudential - Fannie Mae		5.480		19,735,152		04/01/16		6.25
Owings Run 1 & 2		Prudential - Fannie Mae		5.590		42,704,003		04/01/16		6.25
Country Village		Centerline - Fannie Mae		5.520		19,008,250		06/01/16		6.42
Fox Hall Apartments		Columbia Nat'l - Freddie Mac		5.610		47,000,000		06/01/17		7.42
Mill Towne Village		Prudential - Fannie Mae		5.990		24,239,000		09/01/17		7.67
Royal Gardens Apts.		M&T Realty - Freddie Mac		5.830		47,000,000		11/01/17		7.84
Village Square 1, 2 & 3		Prudential - Fannie Mae		5.810		39,285,000		12/01/17		7.92
Chatham Hill		M&T Realty - Freddie Mac		5.590		45,000,000		01/01/18		8.01
Seminary Towers Apartments		Prudential - Fannie Mae		5.485		53,515,000		07/01/18		8.50
Bonnie Ridge - 1st		Prudential Life		6.600		12,214,461		12/15/18		8.96
Bonnie Ridge - 2nd		Prudential Life		6.160		18,124,769		12/15/18		8.96
Bonnie Ridge - 3rd		Prudential Life		6.070		25,233,881		12/15/18		8.96
Westwood Village		M&T Realty - Freddie Mac		5.680		47,423,024		01/01/19		9.01
Ridgeview at Wakefield Valley		M&T Realty - Freddie Mac		5.750		18,559,075		01/01/19		9.01
The Sycamores		M&T Realty - Freddie Mac		5.710		21,640,454		01/01/19		9.01
Timbercroft III - 2nd		M & T Realty - HUD		8.375		2,368,111		06/01/19		9.42
Timbercroft Townhomes 1 - 2nd		M & T Realty - HUD		8.375		1,607,768		06/01/19		9.42
The Brooke at Peachtree		Wells Fargo - Fannie Mae		5.470		12,530,018		07/01/19		9.50
Glen Manor		Prudential - Fannie Mae		5.830		8,024,257		08/01/19		9.59
Ridley Brook		Prudential - Fannie Mae		5.830		13,320,965		08/01/19		9.59
Southern Meadows		Red Mortgage - Fannie Mae		5.360		41,387,784		10/01/19		9.76
Elmwood Terrace		M & T Realty - Fannie Mae		5.560		27,135,600		11/01/19		9.84
Lakeview		Greystone - Fannie Mae		5.310		9,225,000		12/01/19		9.92
The Landings		Prudential - Fannie Mae		5.600		26,550,000		01/01/20		10.01
Dunfield Townhomes		Centerline Capital - HUD		5.250		12,310,874		09/01/28		18.68
Highland House	(1)	Arbor Comml - Fannie Mae		6.320		6,092,456		01/01/29		19.02
Westwoods	(1)	Midland Loan Services - HUD		5.940		3,596,092		06/01/34		24.43
Briggs-Wedgewood	(2)	Berkshire Mtg - HUD		6.000		15,999,325		11/01/34		24.85

WTD AVG - FIXED SECURED				5.855		1,908,171,783				5.35

VARIABLE RATE SECURED
William Henry		NorthMarq - Freddie Mac		2.559		21,237,736		12/01/10		0.92
Adjusts Monthly - Freddie 30d Ref + 2.50
Virginia Village		Wachovia - Freddie Mac		2.049		30,695,321		07/01/15		5.50
Adjusts Monthly - Freddie 30d Ref + 1.99
Hill Brook Apts		M&T Realty - Freddie Mac		3.525		13,115,247		09/01/16		6.67
Adjusts Monthly - 30L + 2.85 + .44
Wayne Village		M&T Realty - Freddie Mac		3.622		26,679,829		09/01/16		6.67
Adjusts Monthly - 30L + 3.00 + .387
Cider Mill Apts		M&T Realty - Freddie Mac		3.405		64,000,000		01/01/17		7.01
Adjusts Monthly - 30L + 2.89 + .31
The Heights at Marlborough		PNC Real Estate		3.605		24,050,000		01/01/17		7.01
Adjusts Monthly - 30L + 3.02 + .35
Falkland Chase		Montgomery Cty HOC-Fannie		1.320		24,695,000		10/01/30		20.76
Adjusts Weekly - BMA Index + 1.10

WTD AVG - VARIABLE SECURED				2.921		204,473,133				7.75

WTD AVG - TOTAL SECURED DEBT				5.572		2,112,644,916				5.59

FIXED RATE UNSECURED
Exchangeable Senior Notes				5.750		136,136,019		11/01/26		16.85

VARIABLE RATE UNSECURED - LINE OF CREDIT
Unsecured Line of Credit		M and T Bank et. al.		4.750		53,500,000		08/31/12		2.67
Adjusts Daily 30 LIBOR (Floor 1.50) + 3.25

TOTAL COMBINED DEBT				5.563	$	2,302,280,935				6.18

% OF PORTFOLIO - FIXED						88.8	%

WTG AVG - TOTAL SECURED DEBT				5.572						5.59
WTD AVG - TOTAL PORTFOLIO				5.563						6.18

(1)	General ledger balance and rate have been adjusted pursuant to ASC 805 to reflect fair market value of debt.

(2)	Affordable general partner minority interest property consolidated pursuant to ASC 810.

MATURING DEBT SCHEDULE
YEAR OF MATURITY	FIXED RATE				VARIABLE RATE				TOTAL DEBT
	WTD AVG				WTD AVG						% OF
	RATE		DEBT		RATE		DEBT		DEBT		TOTAL
2009		-		-		-		-		-		0	%
2010		6.89		124,992,860		2.56		21,237,736		146,230,596		6.92	%
2011		6.13		298,601,708		-		-		298,601,708		14.13	%
2012		5.94		127,373,656		-		-		127,373,656		6.03	%
2013		6.00		205,493,412		-		-		205,493,412		9.73	%
2014		5.35		95,571,202		-		-		95,571,202		4.52	%
2015		5.83		160,910,541		2.05		30,695,321		191,605,862		9.07	%
2016		5.45		315,845,489		3.59		39,795,076		355,640,565		16.83	%
2017		5.78		157,524,000		3.46		88,050,000		245,574,000		11.62	%
2018		5.78		154,088,111		-		-		154,088,111		7.29	%
2019 - 2042		5.66		267,770,803		1.32		24,695,000		292,465,803		13.84	%
TOTAL		5.86	$	1,908,171,783		2.92	$	204,473,133	$	2,112,644,916		100.00	%

Debt Summary Schedule

Unencumbered Properties

Property	# Units		Market	State

Morningside Heights		1,050	Baltimore	MD
The Coves at Chesapeake		469	Baltimore	MD
Gardencrest		696	Boston	MA
Stone Ends Apartments		280	Boston	MA
The Townhomes of Beverly		204	Boston	MA
The Village at Marshfield		276	Boston	MA
Blackhawk Apartments		371	Chicago	IL
Courtyards Village		224	Chicago	IL
The Colony		783	Chicago	IL
Cambridge Village		82	Long Island	NY
Heritage Square		80	Long Island	NY
Holiday Square		144	Long Island	NY
Yorkshire Village		40	Long Island	NY
Liberty Commons		120	Portland	ME
East Hill Gardens		33	Northern NJ	NJ
Jacob Ford Village		270	Northern NJ	NJ
Pleasure Bay		270	Northern NJ	NJ
Windsor Realty		67	Northern NJ	NJ
Glen Brook		177	Philadelphia	PA
Racquet Club South		103	Philadelphia	PA
Trexler Park West		216	Philadelphia	PA
Braddock Lee		255	Suburban Washington, DC	DC
Woodleaf Apartments		228	Suburban Washington, DC	DC

Total Number of Units:		6,438
Total Number of Properties:		23

Recurring Capital Expenditure Summary

Effective January 1, 2009, the Company 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 annual amount is $800 per apartment unit compared to $780 per apartment unit in the prior year. This new amount better reflects current actual costs 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, revenue generating upgrades include, among other items: community centers, new windows, and kitchen/bath apartment upgrades. Revenue generating capital improvements will directly result in increased rental earnings or expense savings. The Company capitalizes interest and certain internal personnel costs related to the communities under rehabilitation and construction.

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

							Maintenance
					Capitalized		Expense		Total
	Capitalized				Expenditure		Cost Per		Cost Per
	Cost Per		Useful		Per Unit		Unit		Unit
Category	Unit		Life(1)		Per Year(2)		Per Year(3)		Per Year
Appliances	$	1,436		9	$	160	$	13	$	173
Blinds/shades		135		3		45		7		52
Carpets/cleaning		770		4		193		180		373
Computers, equipment, misc.(4)		120		6		20		18		38
Contract repairs		-		-		-		147		147
Exterior painting (5)		84		3		28		-		28
Flooring		250		9		28		-		28
Furnace/air (HVAC)		824		24		34		105		139
Hot water heater		260		7		37		-		37
Interior painting		-				-		205		205
Kitchen/bath cabinets upgrades		1,200		15		80		-		80
Landscaping site		-		-		-		131		131
New roof		800		24		33		-		33
Parking lot site		540		15		36		-		36
Pool/exercise facility		119		15		8		54		62
Windows major		1,505		20		75		-		75
Miscellaneous (6)		385		17		23		-		23
Total	$	8,428			$	800	$	860	$	1,660

(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 $860 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 similarly titled presentations as the Company's portfolio has a significant amount of brick exteriors. In addition, the other exposed surfaces are most often covered in aluminum or vinyl.

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

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.

Capital Expenditure Summary

The Company estimates that on an annual basis $800 and $780 per unit is spent on recurring capital expenditures in 2009 and 2008, respectively. During the three months ended December 31, 2009 and 2008, approximately $200 and $195 per unit, respectively, was estimated to be spent on recurring capital expenditures. For the twelve months ended December 31, 2009 and 2008, approximately $800 and $780 per unit, respectively, was estimated to be spent on recurring capital expenditures. The table below summarizes the actual total capital improvements incurred by major categories and an estimate of the breakdown of total capital improvements by major categories between recurring and non-recurring, revenue generating capital improvements for the three and twelve months ended December 31, 2009 as follows:

For the three months ended December 31, 2009
($ 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	$	-	$	-	$	94	$	3	$	94	$	3
Major building improvements		1,121		32		3,676		103		4,797		135
Roof replacements		294		8		378		11		672		19
Site improvements		391		11		1,379		39		1,770		50
Apartment upgrades		1,405		39		4,683		132		6,088		171
Appliances		1,130		32		-		-		1,130		32
Carpeting/flooring		1,966		55		779		22		2,745		77
HVAC/mechanicals		632		18		2,500		70		3,132		88
Miscellaneous		178		5		239		7		417		12
Totals	$	7,117	$	200	$	13,728	$	387	$	20,845	$	587

(a)	Calculated using the weighted average number of units owned, including 34,768 core units, and 2008 acquisition units of 813 for the three months ended December 31, 2009.

For the twelve months ended December 31, 2009
(in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(b)		Cap Ex		Per Unit(b)		Improvements		Per Unit(b)
New buildings	$	-	$	-	$	723	$	20	$	723	$	20
Major building improvements		4,483		125		9,908		278		14,391		403
Roof replacements		1,174		33		1,591		45		2,765		78
Site improvements		1,566		44		3,974		112		5,540		156
Apartment upgrades		5,717		161		17,733		498		23,450		659
Appliances		4,430		125		82		2		4,512		127
Carpeting/flooring		7,863		221		2,817		79		10,680		300
HVAC/mechanicals		2,526		71		6,684		188		9,210		259
Miscellaneous		706		20		1,164		33		1,870		53
Totals	$	28,465	$	800	$	44,676	$	1,255	$	73,141	$	2,055

(b)	Calculated using the weighted average number of units owned, including 34,768 core units, and 2008 acquisition units of 813 for the twelve months ended December 31, 2009.

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, 2009
($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(c)		Cap Ex		Per Unit(c)		Improvements		Per Unit(c)
Core Communities	$	6,954	$	200	$	12,728	$	366	$	19,682	$	566
2008 Acquisition Communities		163		200		1,000		1,230		1,163		1,430
Sub-total		7,117		200		13,728		387		20,845		587
2009 Disposed Communities		15		106		0		2		15		108
2008 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (1)		-		-		-		-		733		-
	$	7,132	$	200	$	13,728	$	384	$	21,593	$	584

(c)	Calculated using the weighted average number of units owned, including 34,768 core units, 2008 acquisition units of 813 and 2009 disposed units of 139 for the three months ended December 31, 2009.

For the twelve months ended December 31, 2009
(in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(d)		Cap Ex		Per Unit(d)		Improvements		Per Unit(d)
Core Communities	$	27,815	$	800	$	41,726	$	1,200	$	69,541	$	2,000
2008 Acquisition Communities		650		800		2,950		3,628		3,600		4,428
Sub-total		28,465		800		44,676		1,255		73,141		2,055
2009 Disposed Communities		418		776		216		401		634		1,177
2008 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (1)		-		-		-		-		1,959		-
	$	28,883	$	800	$	44,892	$	1,243	$	75,734	$	2,043

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

(d)	Calculated using the weighted average number of units owned, including 34,768 core units, 2008 acquisition units of 813 and 2009 disposed units of 539 for the twelve months ended December 31, 2009.

Adjusted Net Operating Income - Core Properties

($ in thousands)

	Quarter			Quarter
	12/31/2009			12/31/2008		Change

Net Operating Income	$	70,796		$	69,993		1.1	%

Less: Non Recurring Cap Ex @ 6%		(764	)		-		-

Adjusted Net Operating Income	$	70,032		$	69,993		0.1	%

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.

Development Communities as of December 31, 2009

# of

Estimated

Property

Units at

Estimated

Costs

Construction

Initial

Construction

Physical

Type

Completion

Costs

Per Unit

Incurred

Start

Occupancy

Completion

Occupancy

Under construction:

1200 East West Highway

High Rise

247

82,000

332.0

72,872

2Q 07

1Q 10

2Q 10

n/a

Silver Spring, MD

Courts at Huntington Station

Podium

421

127,000

301.7

79,624

1Q 08

2Q 10

2Q 11

n/a

Alexandria, VA

Total

668

209,000

312.9

Pre-construction:

Falkland North

High Rise

tbd

1,892

tbd

n/a

Silver Spring, MD

Ripley Street *

High Rise

300

tbd

18,580

tbd

n/a

Silver Spring, MD

Total

172,968

*	Preliminary estimates. A site plan for construction of up to 314 apartment units has been filed. More detail will be provided in subsequent quarters.

Home Properties Cash Flow Projection *
	ACTUAL			PROJECTED			PROJECTED
	2009			2010			2011

Beginning cash on hand (line of credit balance)	$	(71,000	)	$	(53,500	)	$	27,365

FFO		146,171			137,600			147,000
Normal capital replacements		(29,069	)		(29,900	)		(30,800	)
ABP 14-1 non-cash interest expense		1,968			2,082			1,781
AFFO		119,070			109,782			117,981
Dividends		(120,979	)		(110,200	)		(112,700	)

AFFO less dividends		(1,909	)		(418	)		5,281

AFFO payout ratio		101.6	%		100.4	%		95.5	%

Stock buy back		-			-			-
Stock issuance		39,032			108,000			-

Upgrading & repositioning cap ex		(52,468	)		(61,000	)		(70,000	)

Acquisitions		-			(100,000	)		(100,000	)
Secured financing assumed or placed new		-			70,000			70,000
Net cash flow used for acquisitions		-			(30,000	)		(30,000	)

Disposition gross proceeds - named		108,700			16,000			-
Disposition debt		(42,028	)		(16,000	)		-
Disposition gross proceeds - unnamed		-			-			50,000
Disposition debt - unnamed		-			-			(25,000	)
Net cash flow provided from dispositions		66,672			-			25,000

Development needs for projects in pipeline		(72,456	)		(46,500	)		(10,000	)

Debt Activity
Required mortgage principle amortization		(26,772	)		(26,800	)		(26,800	)

Maturing secured debt - per 12/31/2009 average debt schedule		(18,510	)		(146,200	)		(298,600	)

Refinance certain 2010 maturities in 2009		(182,572	)
Net 2009 maturities as adjusted		(201,082	)

Refinance certain 2011 maturities in 2010					(202,500	)		202,500
Net 2010 maturities as adjusted					(348,700	)

Net 2011 maturities as adjusted								(96,100	)

Maturing convertible senior notes		-			-			(140,000	)
Net cash flow used for debt reductions		(227,854	)		(375,500	)		(262,900	)

Gross proceeds from refinancing net 2009 maturities as adjusted		159,048
Gross proceeds from refinancing net 2010 maturities as adjusted					479,700
Gross proceeds from refinancing net 2011 maturities as adjusted								121,000
Secured debt on properties from unencumbered pool		107,435			-			145,000
Net cash flow provided from debt increases		266,483			479,700			266,000

Net cash flow		17,500			74,282			(76,619	)

Beginning cash balance as source of funds					6,583

Ending cash on hand (line of credit balance)	$	(53,500	)	$	27,365		$	(49,255	)

Debt statistics and ratios at period end

Debt to total market cap based on equity trading value		51.1	%		50.7	%		50.7	%

Unencumbered pool as % of total property		20.2	%		21.2	%		16.9	%

*	Assumptions and projections detailed in this presentation are for discussion purposes only. Data does not constitute guidance. Certain assumptions have been made to "stress" the balance sheet.

2010 Earnings Guidance		First			Second			Third			Fourth
		Quarter			Quarter			Quarter			Quarter			Year

2010 compared to 2009
FFO per share - 2010 guidance		$	.65 - $.71		$	.68 - $.74		$	.72 - $.78		$	.70 - $.76		$	2.75 - $2.99

Midpoint of guidance		$	0.68		$	0.71		$	0.75		$	0.73		$	2.87

FFO per share - 2009 actual		$	0.794		$	0.838		$	0.814		$	0.773		$	3.219

Improvement projected			-14.4	%		-15.3	%		-7.9	%		-5.6	%		-10.8	%


Assumptions for midpoint of guidance:
Same store revenue growth	see notes (1) & (2)		-0.5	%		0.8	%		0.1	%		0.5	%		0.2	%

Same store expense growth	see note (3)		3.1	%		4.8	%		1.2	%		3.4	%		3.1	%

Same store NOI growth			-3.3	%		-2.0	%		-0.7	%		-1.7	%		-1.9	%

Note:

If no other variables changed other than the NOI run rate, the NOI needed to produce the FFO range of $2.75 to $2.99 would be from a low of -3.9% to a high of + 0.1%, with the midpoint above of -1.9%.

Assumption for occupancy in guidance:

Same store 2010 physical occupancy		94.6	%	94.9	%		95.1	%		94.8	%		94.8	%

Same store 2009 physical occupancy		94.3	%	95.0	%		95.1	%		95.0	%		94.8	%

Change in occupancy		0.3	%	-0.1	%		0.0	%		-0.2	%		0.0	%



Annual growth by region:		2009				2010 Same Store Growth Projection
	% of NOI					Revenue			Expenses			NOI
Boston		7.5	%				-0.4	%		-0.7	%		-0.3	%
Baltimore		20.0	%				1.0	%		3.4	%		-0.6	%
Washington, DC		29.2	%				0.8	%		3.4	%		-0.9	%
New Jersey/Long Island/Hudson Valley		22.5	%				-0.5	%		1.9	%		-2.3	%
Florida		1.7	%				-1.0	%		0.5	%		-2.7	%
Philadelphia		13.5	%				-0.1	%		3.6	%		-3.2	%
Maine		1.4	%				0.1	%		4.9	%		-3.0	%
Chicago *		4.2	%				-0.5	%		11.7	%		-11.2	%
Total		100.0	%				0.2	%		3.1	%		-1.9	%

*	Chicago is projected to have above average expense growth due to increased real estate taxes projected. 2009 included special refunds that will not be repeated in 2010.

Significant first quarter winter storms will add $1 million to expenses. If not for these storms, operating & maintenance expenses would have been up 2.7% (vs 3.1% projected) and NOI would have been down 1.6% (vs -1.9% projected).

(1)	Rental rates are projected to decrease 0.1%. Economic occupancy is projected to be flat year over year, resulting in -0.1% rental revenue growth.

(2)	Property other income is expected to increase the -0.1% rental revenue growth to 0.2% total revenue growth. Driving this increase is a $1.5 million marginal increase in utility recovery income.

	(In thousands)
	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter			Year
Utility recovery - 2010	$	7,700	$	5,200	$	3,700	$	4,700		$	21,300

Utility recovery - 2009	$	7,249	$	3,674	$	3,526	$	5,318		$	19,767

Increase (decrease)	$	451	$	1,526	$	174	$	(618	)	$	1,533

2010 Earnings Guidance

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

		% of Total			% Increase
		Expenses			Over 2009
	Electricity		4.3	%		3.2	%
(a)	Natural gas heating costs		8.5	%		-3.1	%
	Water and sewer		7.2	%		5.0	%
	Repairs and maintenance		14.8	%		3.9	%
(b)	Total personnel costs		23.1	%		6.5	%
(c)	Real estate taxes		22.8	%		2.9	%
	Property insurance		4.5	%		-3.2	%
	Advertising		2.0	%		1.1	%
(d)	Legal & Professional		0.6	%		-21.5	%
	Office & telephone		2.7	%		0.0	%
(e)	Snow removal		0.8	%		48.2	%
	Trash		1.7	%		6.4	%
	Property management G & A		7.0	%		2.3	%
			100.0	%		3.1	%

(a)

Heating costs are projected to decrease 3.1% based on lower costs per decatherm locked in for 2010 versus 2009 actual.

(b)

This includes $300 thousand or 0.7% for snow removal overtime, $500 thousand or 1.1% for health insurance, and $800 thousand or 1.8% for property site bonus. In 2009, our property NOI results outperformed our peers, but missed our internal budgets such that the site bonus levels were down substantially. We are budgeting more normalized levels in 2010.

(c)

Real estate taxes include expected assessment reductions that limit the increase.

(d)

Large payments were made on this line item in 2009 due to successful tax assessment reductions. This level is expected to be reduced considerably in 2010.

(e)

We have included $700 thousand additional costs in the first quarter for the recent severe winter storms.

(4)	G & A costs are expected to increase 0.4%. The run rate is projected as follows:

	(In thousands)
	First			Second		Third			Fourth
	Quarter			Quarter		Quarter			Quarter			Year

2010 projected	$	5,700		$	7,100	$	5,900		$	5,900		$	24,600
2009 actual	$	5,900		$	6,300	$	6,100		$	6,200		$	24,500
Increase (decrease)	$	(200	)	$	800	$	(200	)	$	(300	)	$	100

(5)	Interest and dividend income is expected to have a run rate of approximately $5 thousand per quarter. The run rate is projected as follows:

	(In thousands)
	First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter			Year

2010 projected	$	5		$	5		$	5	$	5		$	20
2009 actual	$	8		$	6		$	4	$	41		$	59
Increase (decrease)	$	(3	)	$	(1	)	$	1	$	(36	)	$	(39	)

2010 Earnings Guidance

(6)	Other income is expected to be approximately $30 thousand per quarter. The year over year decrease is due to third party fee income and some miscellaneous items that will not be repeated in 2010.

	(In thousands)
	First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter			Year

2010 projected	$	50		$	30		$	30	$	30		$	140
2009 Actual	$	278		$	90		$	29	$	303		$	700
Increase (decrease)	$	(228	)	$	(60	)	$	1	$	(273	)	$	(560	)

(7)	Interest Expense is projected as follows:

	(In thousands)
	First			Second		Third		Fourth
	Quarter			Quarter		Quarter		Quarter		Year

Development properties placed in service	$	50		$	600	$	1,150	$	1,650	$	3,450
All other interest expense (including acquisitions)	$	30,100		$	29,800	$	30,550	$	30,750	$	121,200
2010 projected run rate	$	30,150		$	30,400	$	31,700	$	32,400	$	124,650
(8) Development NOI 2010 projected run rate	$	(25	)	$	125	$	700	$	1,200	$	2,000


(9) Acquisition level of $100 million spread throughout the year


(10) No dispositions assumed for year


(11) Finish out balance of ATM equity program, raising net proceeds of approximately $108 million.


(12) Assumed weighted average shares/units outstanding on a diluted basis, full year 2010, in thousands											48,000

(13)	Reconciliation of 2009 FFO to 2010 FFO by quarter

	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year

2009 FFO as reported	$	0.790		$	0.840		$	0.810		$	0.770		$	3.220

Reduced SS property adjusted NOI		(0.070	)		(0.050	)		(0.028	)		(0.042	)		(0.190	)

Dilution from development properties placed in service		-			(0.014	)		(0.008	)		(0.008	)		(0.030	)

Higher LOC interest costs		(0.017	)		(0.016	)		(0.012	)		-			(0.045	)

Dilution from equity issuance (ATM)		(0.015	)		(0.010	)		(0.010	)		(0.005	)		(0.040	)

2009 property sales dilution		(0.010	)		(0.010	)		(0.005	)		-			(0.025	)

2010 expensing of acquisition costs		-			(0.003	)		(0.003	)		-			(0.006	)

Other income		(0.005	)		-			-			(0.006	)		(0.011	)

G&A		0.004			(0.015	)		0.004			0.006			(0.001	)

Misc		0.003			(0.012	)		0.002			0.015			(0.002	)

Total reduced FFO		(0.110	)		(0.130	)		(0.060	)		(0.040	)		(0.350	)

2010 FFO midpoint	$	0.680		$	0.710		$	0.750		$	0.730		$	2.870