8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

May 3, 2012

HOME PROPERTIES, INC.

(Exact name of Registrant as specified in its Charter)

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

850 Clinton Square, Rochester, New York 14604

(Address of principal executive offices)

(585) 546-4900

(Registrant's telephone number, including area code)

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

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

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

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

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

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 3, 2012, the Registrant issued a press release announcing its results for the first quarter ended March 31, 2012.  The related press release and supplemental information referred to in the press release are furnished as Exhibit 99 hereto.

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

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

c.      Exhibits

Exhibit 99 Press Release and supplemental information to press release of May 3, 2012, relating to first quarter ended March 31, 2012 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:	May 4, 2012	HOME PROPERTIES, INC.
		(Registrant)
		By:	/s/ David P. Gardner
			David P. Gardner
			Executive Vice President and
			Chief Financial Officer

EX-99

EXHIBIT 99

HOME PROPERTIES, INC.

SUPPLEMENTAL FINANCIAL INFORMATION

FIRST QUARTER 2012

TABLE OF CONTENTS

	1Q 2012 Supplemental Reports	Page
1.	Earnings Release	1-8
2.	Owned Community Results	9-10
3.	Physical Occupancy Comparison by Region	11
4.	Net Operating Results	12
5.	New Lease and Renewal Lease Rents vs. Expiring Lease Rents	13
6.	Resident Statistics	14
7.	Net Operating Income Detail and Seasonality Factor for NAV Calculation	15
8.	Operating Expense Detail	16
9.	Summary of Recent Acquisitions	17
10.	Summary of Recent Sales	18
11.	Breakdown of Owned Units by Market	19
12.	Debt Summary Schedule	20-22
13.	Recurring Capital Expenditure and Adjusted NOI Summary	23-24
14.	Development Communities	25
15.	2012 Earnings Guidance	26-27

FOR IMMEDIATE RELEASE

Home Properties Reports First Quarter 2012 Results

FFO Per Share Exceeds Wall Street’s Mean Estimate by 5 Cents

ROCHESTER, N.Y., May 3, 2012 – Home Properties, Inc. (NYSE: HME) today released financial results for the first quarter ended March 31, 2012.  All results are reported on a diluted basis.

“Home Properties core property net operating income growth in the first quarter of 2012 was the highest for any first quarter in the last five years,” said Edward J. Pettinella, Home Properties President and CEO.  “Increases in rental revenues and occupancy exceeded the strong results in both the prior quarter and the first quarter a year ago, reflecting the positive fundamentals in the multifamily business environment as well as our successful property management operations in prime apartment markets.”

Earnings per share ("EPS") for the quarter ended March 31, 2012 was $0.31, compared to $0.19 for the quarter ended March 31, 2011.  The $0.12 increase in EPS is primarily attributable to a $9.4 million increase in income from continuing operations from both the properties owned throughout 2011 and 2012 (the “Core” properties) and those acquired, developed, or redeveloped subsequent to January 1, 2011 (the “Non-Core” properties).

For the quarter ended March 31, 2012, Funds From Operations ("FFO") were $58.4 million, or $0.98 per share, compared to $43.2 million, or $0.86 per share, for the quarter ended March 31, 2011, which equates to a 13.2% increase on a per-share basis.  First quarter 2012 FFO of $0.98 per share was $0.06 above the midpoint of the guidance range provided by management and $0.05 above the analysts' mean estimate, as reported by Thomson. A reconciliation of GAAP net income to FFO is included in the financial data accompanying this news release.

First Quarter Operating Results

For the first quarter of 2012, same-property comparisons (for 113 Core properties containing 37,811 apartment units owned since January 1, 2011) reflected an increase in rental income of 5.1% and a 4.6% increase in total revenues compared to the same quarter a year ago.  Net operating income (“NOI”) increased by 9.9% from the first quarter of 2011.  Property level operating expenses decreased by 2.8% compared to the prior year quarter, primarily due to decreases in natural gas heating costs, personnel expense and snow removal costs, which were partially offset by an increase in repairs & maintenance, property insurance and real estate taxes.  Adjusting the first quarter NOI results to take out the positive effects from the extremely mild weather, which resulted in lower natural gas heating costs and snow removal expenses offset by lower heating cost reimbursements from residents, NOI growth was 7.8%.

Home Properties Reports First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 2 of 8

Average physical occupancy for the Core properties was 95.5% during the first quarter of 2012, up from 95.3% during the first quarter of 2011.  Average monthly rental rates of $1,207 represent a 4.8% increase compared to the year-ago period.

On a sequential basis, compared to the 2011 fourth quarter results for Core properties, rental income (excluding utility recovery) increased 0.9% in the first quarter of 2012, total revenues increased 2.8%, expenses increased 5.6% and NOI increased 1.1%.  Average physical occupancy increased 0.2% to 95.5%.

Physical occupancy for the 4,218 apartment units acquired/developed/redeveloped between January 1, 2011 and March 31, 2012 averaged 87.2% during the first quarter of 2012, at average monthly rents of $1,446.

Acquisitions/Dispositions

There were no acquisitions or dispositions of apartment communities during the first quarter of 2012.

Development

As of March 31, 2012, renovation of the rail depot and construction of three of the eight apartment buildings comprising The Apartments at Cobblestone Square, located in Fredericksburg, Virginia, were completed, placing 129 apartment units into service.  Construction of the other five buildings, which will contain 185 apartment units, has begun. The entire project is expected to be completed in the second quarter of 2012.

The Company started construction in the fourth quarter of 2011 on Eleven55 Ripley, which will consist of 379 units located in downtown Silver Spring, Maryland.  Initial occupancy is projected to occur in the third quarter of 2013, with completion of the entire project anticipated in 2014.

The Company purchased a land parcel located in Conshohocken, Pennsylvania in the fourth quarter of 2011. Construction of the 385 apartment units, comprising Courts at Spring Mill Station, is expected to begin in the second quarter of 2012.  Initial occupancy is projected for the second half of 2013, and the entire project is expected to be completed in 2014.

Capital Markets Activities

As of March 31, 2012, the Company’s ratio of debt-to-total market capitalization was 42.6% (based on a March 31, 2012 stock price of $61.01 used to determine equity value), with $65.5 million outstanding on its $275 million revolving credit facility and $9 million of unrestricted cash on hand.  Total debt of $2.7 billion was outstanding, at interest rates averaging 4.7% and with staggered maturities averaging six years.  Approximately 81% of total indebtedness is at fixed rates.  Interest coverage for the quarter was 2.9 times and the fixed charge ratio was 2.8 times.

The Company has an At-The-Market equity offering program through which it may sell up to 3.6 million common shares.  During 2012, 188,393 shares were issued at an average price of $59.22 generating gross proceeds of $11.2 million and net proceeds of $10.9 million.  There are 207,500 common shares remaining under this program.

Home Properties Reports First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 3 of 8

Outlook

Based solely on the actual first quarter results as compared to expectations, the Company has increased the midpoint of its prior guidance by six cents to $3.93 and the range of FFO per share to $3.87 to 3.99.  The guidance range of FFO per share results for the second quarter of 2012 is $0.93 to $0.97, and the range for Operating FFO per share for the second quarter is $0.94 to $0.98.  The Company expects to include additional commentary on projected results for the balance of the year when it announces second quarter 2012 financial results.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.66 per share for the quarter ended March 31, 2012.  The dividend is payable on May 25, 2012 to shareholders of record on May 15, 2012 and is equivalent to an annualized rate of $2.64 per share.  The current annual dividend represents a 4.3% yield based on the April 30 closing price of $61.05.  Home Properties’ common stock will begin trading ex-dividend on May 11, 2012.

Supplemental Information

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

First Quarter 2012 Earnings Conference Call

The Company will conduct a conference call and simultaneous webcast tomorrow at 11:00 AM ET to review and comment on the information reported in this release.  The webcast, which includes audio and a slide presentation, will be available, live at 11:00 AM and archived by 1:00 PM, through the "Investors" section home page of the website homeproperties.com.  For live audio-only participation, please dial 800-913-1647 (International 212-231-2900).

Second Quarter 2012 Conference/Event Schedule

Home Properties is scheduled to participate in REITWeek 2012:® NAREIT's Investor Forum® from June 12-14, 2012 in New York City.  Management will present information and answer questions about its operations on Wednesday, June 13, from 11:00-11:30 AM ET.  The audio presentation and related materials will be available at homeproperties.com in the “Investors” section.  Details on how to access any presentation or related materials will be available at homeproperties.com in the “Investors” section.

Second Quarter 2012 Earnings Release and Conference Call

The Company’s second quarter 2012 financial results are scheduled to be released after the stock market closes on Thursday, August 2, 2012.  A conference call, which will be simultaneously webcast, is scheduled for Friday, August 3, 2012 at 11:00 AM ET and will be accessible following the instructions for the current quarter's conference call.

Home Properties Reports First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 4 of 8

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

Home Properties is a publicly traded apartment real estate investment trust that owns, operates, develops, acquires and rehabilitates apartment communities primarily in selected Northeast and Mid-Atlantic markets.  An S & P 400 Company, Home Properties owns and operates 124 communities containing 42,068 apartment units.  For more information, visit Home Properties’ website at www.homeproperties.com.

Home Properties Reports First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 5 of 8

HOME PROPERTIES, INC.

SUMMARY OF OCCUPANCY AND PROPERTY OPERATING RESULTS

	Avg. Physical
First  Quarter Results:	Occupancy(a)							1Q 2012	1Q 2012 vs. 1Q 2011 % Growth
							Average
							Monthly		Base
							Rent/		Rental			Total			Total
		1Q 2012			1Q 2011		Occ Unit		Rates			Revenue			Expense			NOI
Core Properties(b)		95.5	%		95.3	%	$	1,207		4.8	%		4.6	%		(2.8	%)		9.9	%
Non-Core Properties(c)		87.2	%	NA			$	1,446	NA			NA			NA			NA
TOTAL PORTFOLIO		94.5	%	NA			$	1,231	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 113 properties with 37,811 apartment units owned throughout 2011 and 2012.

(c) Non-Core Properties consist of 11 properties with 4,218 apartment units acquired, developed, or redeveloped subsequent to January 1, 2011, such that full year comparable operating results are not available.

Home Properties Reports First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 6 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended
	March 31
	2012			2011
Rental income	$	145,194		$	127,421
Property other income		15,114			13,924
Other income		10			53
Total revenues		160,318			141,398
Operating and maintenance		61,271			58,279
General and administrative		8,312			6,236
Interest		31,526			33,031
Depreciation and amortization		40,405			34,479
Other expenses		18			10
Total expenses		141,532			132,035
Net income		18,786			9,363
Net income attributable to noncontrolling interest		(3,398	)		(2,139	)
Net income attributable to common stockholders	$	15,388		$	7,224
Reconciliation from net income attributable to  common stockholders to Funds From Operations:
Net income available to common stockholders	$	15,388		$	7,224
Real property depreciation and amortization		39,658			33,815
Noncontrolling interest		3,398			2,139
FFO - basic and diluted (1)	$	58,444		$	43,178

(1) Pursuant to the updated guidance for Funds From Operations provided by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT"), FFO is defined as net income (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP")) excluding gains or losses from disposition of property, impairment write-downs of depreciable real estate, noncontrolling interest and extraordinary items plus depreciation from real property.  The Company 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 First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 7 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended
	March 31
	2012			2011
FFO – basic and diluted	$	58,444		$	43,178
FFO – basic and diluted	$	58,444		$	43,178
Acquisition costs of closed deals included in other expenses		18			10
Operating FFO (2)	$	58,462		$	43,188
FFO – basic and diluted	$	58,444		$	43,178
Recurring non-revenue generating capital expenses		(8,900	)		(7,772	)
Add back of non-cash interest expense		-			538
AFFO (3)	$	49,544		$	35,944
Operating FFO	$	58,462		$	43,188
Recurring non-revenue generating capital expenses		(8,900	)		(7,772	)
Add back of non-cash interest expense		-			538
Operating AFFO (2) (3)	$	49,562		$	35,954
Weighted average shares/units outstanding:
Shares – basic		48,334.5			38,004.2
Shares – diluted		49,013.0			38,659.8
Shares/units – basic (4)		59,037.5			49,292.6
Shares/units – diluted (4)		59,716.1			49,948.2
Per share/unit:
Net income – basic	$	0.32		$	0.19
Net income – diluted	$	0.31		$	0.19
FFO – basic	$	0.99		$	0.88
FFO – diluted	$	0.98		$	0.86
Operating FFO (2)	$	0.98		$	0.86
AFFO (3)	$	0.83		$	0.72
Operating AFFO (2) (3)	$	0.83		$	0.72
Common Dividend paid	$	0.66		$	0.62

(2) Operating FFO is defined as FFO as computed in accordance with NAREIT definition, adjusted for the add back of acquisition costs on closed deals.

(3) Adjusted Funds From Operations ("AFFO") is defined as gross FFO less an annual reserve for anticipated recurring, non-revenue generating capitalized costs of $848 and $800 per apartment unit in 2012 and 2011, respectively.  Non-cash interest expense of the exchangeable senior notes in accordance with ASC 470-20 (formerly APB14-1) has been added back for 2011.  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 First Quarter 2012 Results

For Immediate Release:  May 3, 2012

Page 8 of 8

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	March 31, 2012			December 31, 2011
Land	$	721,497		$	721,542
Construction in progress		73,313			64,201
Buildings, improvements and equipment		4,296,309			4,256,581
		5,091,119			5,042,324
Accumulated depreciation		(1,023,402	)		(983,759	)
Real estate, net		4,067,717			4,058,565
Cash and cash equivalents		8,676			8,297
Cash in escrows		34,504			32,604
Accounts receivable		12,950			12,142
Prepaid expenses		16,417			15,994
Deferred charges		15,556			16,322
Other assets		16,210			9,282
Total assets	$	4,172,030		$	4,153,206
Mortgage notes payable	$	2,222,204		$	2,260,836
Unsecured notes payable		400,000			400,000
Unsecured line of credit		65,500			2,500
Accounts payable		21,114			20,953
Accrued interest payable		11,799			10,286
Accrued expenses and other liabilities		25,904			29,474
Security deposits		19,519			19,513
Total liabilities		2,766,040			2,743,562
Common stockholders’ equity		1,153,734			1,153,668
Noncontrolling interest		252,256			255,976
Total equity		1,405,990			1,409,644
Total liabilities and equity	$	4,172,030		$	4,153,206
Total shares/units outstanding:
Common stock		48,644.3			48,321.3
Operating partnership units		10,670.4			10,739.8
		59,314.7			59,061.1

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

###

Owned Community Results
First Quarter 2012												1Q '12 versus 1Q '11
												% Growth
	# of		Date	1Q '12		1Q '12			1Q '11			Rental			Total			Total			Total			1Q '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI
Baltimore Region
Annapolis Roads		282	6/17/2010	$	1,253		95.1	%		88.8	%		1.8	%		14.3	%		(14.1	%)		39.2	%
Bonnie Ridge		960	7/1/1999	$	1,125		95.5	%		94.2	%		3.9	%		1.4	%		(8.1	%)		6.6	%
Canterbury Apartments		618	7/15/1999	$	991		94.1	%		94.3	%		4.0	%		3.8	%		(3.1	%)		8.1	%
Charleston Place		858	9/30/2010	$	1,158		96.0	%		97.7	%		4.4	%		4.7	%		(3.9	%)		8.7	%
Country Village		344	4/30/1998	$	1,029		95.9	%		97.0	%		7.5	%		2.7	%		(4.2	%)		7.0	%
Dunfield Townhomes		312	11/1/2007	$	1,186		95.7	%		96.1	%		4.7	%		3.3	%		(4.2	%)		7.1	%
Falcon Crest		396	7/15/1999	$	1,018		97.3	%		95.3	%		3.5	%		6.3	%		(6.3	%)		12.9	%
Fox Hall Apartments		720	3/28/2007	$	885		94.4	%		92.5	%		3.9	%		8.6	%		1.1	%		15.3	%
Gateway Village		132	7/15/1999	$	1,370		93.9	%		96.8	%		4.3	%		0.9	%		(3.2	%)		3.1	%
Heritage Woods		164	10/4/2006	$	1,189		95.1	%		98.2	%		8.9	%		7.0	%		(4.9	%)		13.4	%
Middlebrooke Apartments		208	4/1/2010	$	977		94.8	%		96.2	%		7.0	%		8.5	%		(5.1	%)		18.3	%
Mill Towne Village Apts		384	5/31/2001	$	913		94.9	%		94.6	%		2.7	%		3.4	%		(5.3	%)		9.0	%
Morningside Heights		1,050	4/30/1998	$	919		91.6	%		93.1	%		4.6	%		2.6	%		0.9	%		3.6	%
Owings Run		504	7/15/1999	$	1,254		94.9	%		96.0	%		3.1	%		0.7	%		(3.9	%)		2.8	%
Ridgeview at Wakefield Valley		204	1/13/2005	$	1,206		97.2	%		93.6	%		1.5	%		5.3	%		2.3	%		7.0	%
Saddle Brooke Apartments		468	10/29/2008	$	1,070		94.6	%		94.6	%		6.1	%		6.7	%		(12.8	%)		21.0	%
Selford Townhomes		102	7/15/1999	$	1,393		96.1	%		92.2	%		4.3	%		13.4	%		2.3	%		18.9	%
The Apts at Cambridge Court		544	8/23/2011	$	1,323		91.7	%		n/a			n/a			n/a			n/a			n/a
The Coves at Chesapeake		469	11/20/2006	$	1,265		93.1	%		89.8	%		3.9	%		11.0	%		(5.9	%)		20.7	%
The Greens at Columbia		168	7/29/2010	$	1,398		95.6	%		95.9	%		4.8	%		5.6	%		(6.3	%)		10.6	%
Timbercroft Townhomes		284	7/15/1999	$	957		99.9	%		99.2	%		3.9	%		6.2	%		0.7	%		9.1	%
Top Field		156	10/4/2006	$	1,298		94.3	%		98.7	%		5.5	%		1.6	%		0.6	%		2.0	%
Village Square Townhomes		370	7/15/1999	$	1,184		95.7	%		95.8	%		3.7	%		5.0	%		(5.6	%)		10.6	%
Westbrooke Apartments		110	4/1/2010	$	847		95.6	%		93.6	%		5.6	%		10.1	%		(3.3	%)		24.8	%
Woodholme Manor		177	3/30/2001	$	913		96.3	%		94.4	%		3.3	%		5.3	%		5.7	%		5.1	%
Total Baltimore Region		9,984		$	1,082		95.0	%		94.7	%		4.2	%		5.0	%		(4.2	%)		10.3	%		22.7	%
Boston Region
Gardencrest		696	6/28/2002	$	1,598		96.2	%		95.0	%		5.6	%		7.7	%		(12.1	%)		21.7	%
Highland House		172	5/31/2006	$	1,216		97.4	%		95.2	%		7.1	%		11.2	%		3.2	%		19.7	%
Liberty Commons		120	8/30/2006	$	1,283		96.3	%		97.9	%		4.8	%		3.9	%		(2.9	%)		7.1	%
Liberty Place		107	6/6/2006	$	1,481		96.2	%		94.5	%		4.0	%		5.7	%		0.6	%		10.1	%
Redbank Village		500	7/8/1998	$	926		97.6	%		97.6	%		6.2	%		7.3	%		2.5	%		10.6	%
Stone Ends		280	2/12/2003	$	1,290		94.5	%		94.1	%		5.3	%		5.4	%		11.9	%		0.3	%
The Commons at Haynes Farm		302	7/15/2011	$	1,261		95.8	%		n/a			n/a			n/a			n/a			n/a
The Heights at Marlborough		348	9/7/2006	$	1,215		93.3	%		93.6	%		4.7	%		6.0	%		10.1	%		2.5	%
The Meadows at Marlborough		264	9/7/2006	$	1,179		93.8	%		96.0	%		5.7	%		4.0	%		(9.3	%)		20.3	%
The Townhomes of Beverly		204	2/15/2007	$	1,509		96.7	%		95.7	%		3.6	%		5.2	%		(14.7	%)		21.7	%
The Village at Marshfield		276	3/17/2004	$	1,175		95.7	%		96.4	%		3.5	%		6.1	%		14.3	%		(0.4	%)
Westwoods		35	4/30/2007	$	1,288		94.6	%		98.2	%		7.0	%		6.9	%		7.8	%		5.9	%
Total Boston Region		3,304		$	1,289		95.8	%		95.5	%		5.2	%		6.6	%		(1.4	%)		12.8	%		7.7	%
Chicago Region
Blackhawk		371	10/20/2000	$	887		95.3	%		95.5	%		4.2	%		3.3	%		(10.1	%)		21.4	%
Courtyards Village		224	8/29/2001	$	875		96.9	%		97.8	%		6.8	%		5.8	%		6.5	%		5.2	%
Cypress Place		192	12/27/2000	$	986		96.7	%		97.9	%		7.3	%		5.4	%		(13.4	%)		26.8	%
Lakeview Townhomes		120	10/18/2010	$	1,197		94.0	%		92.7	%		6.2	%		15.3	%		(21.4	%)		67.1	%
The Colony		783	9/1/1999	$	884		96.5	%		97.1	%		3.9	%		3.2	%		(0.1	%)		6.2	%
The Gates of Deer Grove		204	12/15/2011	$	1,039		92.2	%		n/a			n/a			n/a			n/a			n/a
The New Colonies		672	6/23/1998	$	771		95.6	%		96.1	%		4.6	%		4.4	%		(2.8	%)		10.7	%
Total Chicago Region		2,566		$	876		96.0	%		96.4	%		4.9	%		4.7	%		(4.9	%)		14.3	%		4.0	%
Florida Region
The Hamptons		668	7/7/2004	$	995		93.7	%		94.3	%		2.5	%		3.4	%		10.3	%		(3.9	%)
Vinings at Hampton Village		168	7/7/2004	$	1,113		95.6	%		96.6	%		1.6	%		1.1	%		11.7	%		(9.2	%)
Total Florida Region		836		$	1,019		94.1	%		94.8	%		2.3	%		2.9	%		10.6	%		(5.2	%)		1.2	%

Page 9

Owned Community Results
First Quarter 2012												1Q '12 versus 1Q '11
												% Growth
	# of		Date	1Q '12		1Q '12			1Q '11			Rental			Total			Total			Total			1Q '12
	Units		Acquired	Rent/Mo.		Occup.			Occup.			Rates(1)			Revenue			Expense			NOI			% Co. NOI
Long Island, NY Region
Bayview / Colonial		160	11/1/2000	$	1,291		99.1	%		98.0	%		4.7	%		7.4	%		(17.4	%)		34.3	%
Cambridge Village		82	3/1/2002	$	1,851		98.0	%		97.8	%		6.7	%		3.6	%		0.0	%		6.3	%
Crescent Club Apartments		257	9/30/2010	$	1,321		93.0	%		97.4	%		5.7	%		3.4	%		(8.0	%)		14.1	%
Devonshire Hills		656	7/16/2001	$	1,619		96.5	%		95.9	%		4.2	%		3.7	%		(4.9	%)		9.5	%
Hawthorne Court		434	4/4/2002	$	1,466		97.0	%		96.8	%		3.6	%		2.1	%		2.3	%		2.0	%
Heritage Square		80	4/4/2002	$	1,796		98.9	%		97.6	%		4.8	%		4.6	%		0.6	%		8.0	%
Holiday Square		144	5/31/2002	$	1,251		97.9	%		95.2	%		3.7	%		7.6	%		1.4	%		12.6	%
Lake Grove Apartments		368	2/3/1997	$	1,475		97.0	%		95.4	%		4.3	%		6.1	%		(0.7	%)		11.1	%
Mid-Island Estates		232	7/1/1997	$	1,442		98.4	%		95.9	%		5.0	%		8.6	%		3.5	%		12.1	%
Sayville Commons		342	7/15/2005	$	1,610		96.3	%		95.5	%		2.4	%		2.9	%		3.3	%		2.7	%
South Bay Manor		61	9/11/2000	$	1,667		96.7	%		93.9	%		3.2	%		9.9	%		(8.2	%)		30.1	%
Southern Meadows		452	6/29/2001	$	1,442		95.5	%		94.3	%		3.5	%		2.6	%		(4.8	%)		9.1	%
Westwood Village Apts		242	3/1/2002	$	2,439		95.2	%		95.5	%		4.1	%		5.8	%		4.6	%		6.6	%
Woodmont Village Apts		97	3/1/2002	$	1,353		97.6	%		96.1	%		3.1	%		5.0	%		(6.1	%)		11.9	%
Yorkshire Village Apts		40	3/1/2002	$	1,874		97.6	%		98.9	%		3.5	%		(0.7	%)		(0.2	%)		(1.4	%)
Total Long Island Region		3,647		$	1,562		96.5	%		95.9	%		4.1	%		4.4	%		(1.8	%)		9.2	%		10.5	%
New Jersey Region
Barrington Gardens		148	3/1/2005	$	1,251		95.9	%		95.9	%		7.3	%		11.6	%		(7.5	%)		31.2	%
Chatham Hill Apartments		308	1/30/2004	$	1,837		92.9	%		94.1	%		7.9	%		6.5	%		(6.6	%)		13.4	%
East Hill Gardens		33	7/8/1998	$	1,595		98.2	%		93.4	%		3.8	%		12.0	%		1.4	%		19.4	%
Hackensack Gardens		198	3/1/2005	$	1,153		96.4	%		98.0	%		5.2	%		2.0	%		3.0	%		1.1	%
Jacob Ford Village		270	2/15/2007	$	1,295		99.2	%		95.3	%		6.6	%		11.6	%		(9.7	%)		28.7	%
Lakeview		106	7/8/1998	$	1,413		96.6	%		98.0	%		4.3	%		0.7	%		(12.3	%)		15.2	%
Northwood Apartments		134	1/30/2004	$	1,372		96.0	%		97.4	%		4.1	%		4.3	%		38.3	%		(15.4	%)
Oak Manor		77	7/8/1998	$	1,849		97.5	%		93.6	%		6.3	%		10.6	%		0.8	%		16.8	%
Pleasant View		1,142	7/8/1998	$	1,180		94.7	%		95.4	%		3.8	%		4.0	%		(1.4	%)		8.6	%
Pleasure Bay		270	7/8/1998	$	1,061		95.4	%		93.9	%		2.5	%		4.0	%		(14.6	%)		27.9	%
Royal Gardens Apartments		550	5/28/1997	$	1,275		96.1	%		95.5	%		3.6	%		3.7	%		(9.5	%)		16.8	%
Wayne Village		275	7/8/1998	$	1,428		97.3	%		95.7	%		3.0	%		5.9	%		(1.4	%)		10.7	%
Windsor Realty		67	7/8/1998	$	1,306		95.5	%		95.2	%		2.6	%		5.6	%		(11.1	%)		24.7	%
Total New Jersey Region		3,578		$	1,306		95.7	%		95.4	%		4.6	%		5.4	%		(4.1	%)		13.2	%		8.5	%
Philadelphia Region
Castle Club		158	3/15/2000	$	1,004		96.6	%		94.7	%		5.0	%		3.8	%		0.1	%		7.0	%
Chesterfield		247	9/23/1997	$	929		95.9	%		96.3	%		3.8	%		(2.2	%)		(7.9	%)		2.9	%
Curren Terrace		318	9/23/1997	$	895		95.6	%		93.3	%		5.2	%		7.1	%		(6.4	%)		22.8	%
Glen Brook		174	7/28/1999	$	850		93.3	%		92.5	%		3.0	%		2.0	%		(12.1	%)		26.9	%
Glen Manor		174	9/23/1997	$	822		95.6	%		94.0	%		2.2	%		0.5	%		(9.3	%)		13.0	%
Golf Club		399	3/15/2000	$	1,117		94.8	%		94.8	%		4.5	%		2.2	%		(10.6	%)		11.6	%
Hill Brook Place		274	7/28/1999	$	927		94.7	%		95.8	%		5.4	%		(3.5	%)		(5.0	%)		(2.0	%)
Home Properties of Bryn Mawr		316	3/15/2000	$	1,386		98.4	%		96.8	%		14.0	%		10.4	%		(19.2	%)		30.4	%
Home Properties of Devon		631	3/15/2000	$	1,203		93.3	%		94.3	%		8.8	%		3.7	%		(0.6	%)		6.5	%
New Orleans Park		442	7/28/1999	$	885		94.3	%		94.8	%		4.2	%		(1.1	%)		(6.0	%)		4.9	%
Racquet Club		466	7/7/1998	$	1,101		95.1	%		96.1	%		6.2	%		1.4	%		(8.4	%)		9.1	%
Racquet Club South		103	5/27/1999	$	937		95.1	%		96.9	%		6.0	%		(1.0	%)		(8.9	%)		8.2	%
Ridley Brook		244	7/28/1999	$	956		96.1	%		94.0	%		4.1	%		4.1	%		(5.8	%)		14.8	%
Sherry Lake		298	7/23/1998	$	1,237		97.7	%		94.8	%		5.2	%		2.6	%		(8.8	%)		10.1	%
The Brooke at Peachtree Village		146	8/15/2005	$	1,155		97.7	%		97.8	%		3.8	%		3.3	%		(3.4	%)		7.7	%
The Landings		384	11/22/1996	$	1,043		95.7	%		96.6	%		6.2	%		2.4	%		(0.4	%)		4.4	%
Trexler Park		250	3/15/2000	$	1,099		93.2	%		96.8	%		6.0	%		1.3	%		(13.8	%)		13.1	%
Trexler Park West		216	8/15/2008	$	1,332		95.5	%		97.2	%		6.0	%		7.9	%		0.7	%		11.9	%
Waterview Apts		203	7/14/2011	$	1,052		92.0	%		n/a			n/a			n/a			n/a			n/a
William Henry		363	3/15/2000	$	1,178		94.9	%		93.5	%		7.4	%		8.6	%		(12.4	%)		34.2	%
Total Philadelphia Region		5,806		$	1,075		95.3	%		95.2	%		6.3	%		3.2	%		(7.4	%)		12.2	%		12.3	%
Washington, D.C. Region
1200 East West		247	5/11/2010	$	1,873		96.8	%		95.0	%		9.9	%		15.1	%		(4.5	%)		25.6	%
Arbor Park of Alexandria		851	Redevelopment	$	1,422		79.2	%		96.2	%		9.3	%		(8.8	%)		(1.3	%)		(12.9	%)
Braddock Lee		255	3/13/1998	$	1,364		97.5	%		97.7	%		4.2	%		0.2	%		(4.6	%)		3.2	%
Cider Mill		864	9/27/2002	$	1,176		95.8	%		95.1	%		4.3	%		3.8	%		4.3	%		3.4	%
Cinnamon Run		511	12/28/2005	$	1,261		93.8	%		94.1	%		2.5	%		4.4	%		2.6	%		5.2	%
Cobblestone Square		129	Under Construction	$	1,256		71.2	%		n/a			n/a			n/a			n/a			n/a
Courts at Huntington Station		421	Lease Up	$	2,025		74.2	%		n/a			n/a			n/a			n/a			n/a
East Meadow		150	8/1/2000	$	1,388		97.9	%		99.2	%		5.2	%		1.8	%		(6.2	%)		6.4	%
Elmwood Terrace		504	6/30/2000	$	947		95.8	%		95.1	%		3.9	%		4.8	%		0.2	%		8.6	%
Falkland Chase		450	9/10/2003	$	1,422		96.1	%		94.2	%		3.9	%		5.0	%		4.1	%		5.4	%
Hunters Glen		108	4/19/2011	$	955		96.7	%		n/a			n/a			n/a			n/a			n/a
Mount Vernon Square		1,387	12/27/2006	$	1,271		93.0	%		96.4	%		5.0	%		1.9	%		(1.6	%)		3.8	%
Newport Village		937	10/17/2011	$	1,547		93.1	%		n/a			n/a			n/a			n/a			n/a
Park Shirlington		294	3/13/1998	$	1,358		97.6	%		96.7	%		4.8	%		4.6	%		(3.3	%)		9.8	%
Peppertree Farm		879	12/28/2005	$	1,234		94.5	%		90.8	%		3.0	%		5.6	%		1.3	%		8.3	%
Seminary Hill		296	7/1/1999	$	1,347		97.0	%		96.7	%		5.2	%		4.3	%		(1.3	%)		8.4	%
Seminary Towers		544	7/1/1999	$	1,417		94.8	%		95.5	%		7.2	%		4.3	%		(2.4	%)		8.7	%
Somerset Park		108	10/11/2011	$	1,423		96.9	%		n/a			n/a			n/a			n/a			n/a
Tamarron Apartments		132	7/15/1999	$	1,555		95.4	%		98.1	%		3.1	%		(0.7	%)		(9.8	%)		3.5	%
The Apts at Wellington Trace		240	3/2/2004	$	1,370		97.1	%		98.5	%		7.0	%		4.1	%		1.3	%		5.4	%
The Courts at Dulles		411	11/30/2011	$	1,540		91.7	%		n/a			n/a			n/a			n/a			n/a
The Courts at Fair Oaks		364	9/30/2010	$	1,470		96.8	%		94.8	%		4.1	%		6.9	%		3.3	%		8.4	%
The Manor - MD		435	8/31/2001	$	1,304		94.8	%		92.0	%		3.6	%		6.2	%		(2.6	%)		11.8	%
The Manor - VA		198	2/19/1999	$	1,082		97.1	%		97.4	%		8.1	%		4.0	%		(3.2	%)		9.5	%
The Sycamores		185	12/16/2002	$	1,414		97.1	%		96.4	%		5.5	%		5.6	%		(5.7	%)		11.7	%
Village at Potomac Falls		247	8/5/2010	$	1,355		96.3	%		96.6	%		6.7	%		7.8	%		3.2	%		10.6	%
Virginia Village		344	5/31/2001	$	1,394		95.0	%		98.1	%		8.1	%		1.2	%		1.0	%		1.4	%
West Springfield		244	11/18/2002	$	1,531		95.2	%		98.6	%		7.8	%		6.2	%		3.1	%		7.6	%
Westchester West		345	12/30/2008	$	1,303		93.8	%		92.3	%		1.7	%		4.3	%		5.9	%		3.4	%
Woodleaf Apartments		228	3/19/2004	$	1,282		96.3	%		92.6	%		4.8	%		10.7	%		2.3	%		14.9	%
Total Washington, D.C. Region		12,308		$	1,312		95.3	%		95.2	%		4.9	%		4.6	%		0.0	%		7.3	%		33.1	%
TOTAL OWNED PORTFOLIO		42,029		$	1,231		94.5	%		n/a			n/a			n/a			n/a			n/a			100.0	%
TOTAL CORE PORTFOLIO		37,811		$	1,207		95.5	%		95.3	%		4.8	%		4.6	%		(2.8	%)		9.9	%

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

Page 10

Physical Occupancy Comparison By Region - Core Properties

Sequential Comparison
First Quarter 2012 vs. Fourth Quarter 2011
Region	% Units			1Q '12			4Q '11			Variance
Baltimore		25.0	%		95.0	%		94.4	%		0.6	%
Washington, D.C.		24.7	%		95.3	%		95.3	%		0.0	%
New Jersey, Long Island		19.1	%		96.1	%		96.1	%		0.0	%
Philadelphia		14.8	%		95.3	%		95.0	%		0.3	%
Boston		7.9	%		95.8	%		95.3	%		0.5	%
Chicago		6.2	%		96.0	%		96.4	%		(0.4	%)
Florida		2.3	%		94.1	%		94.7	%		(0.6	%)
Total Core		100.0	%		95.5	%		95.3	%		0.2	%
Year over Year Comparison
First Quarter 2012 vs. First Quarter 2011
Region	% Units			1Q '12			1Q '11			Variance
Baltimore		25.0	%		95.0	%		94.7	%		0.3	%
Washington, D.C.		24.7	%		95.3	%		95.2	%		0.1	%
New Jersey, Long Island		19.1	%		96.1	%		95.7	%		0.4	%
Philadelphia		14.8	%		95.3	%		95.2	%		0.1	%
Boston		7.9	%		95.8	%		95.5	%		0.3	%
Chicago		6.2	%		96.0	%		96.4	%		(0.4	%)
Florida		2.3	%		94.1	%		94.8	%		(0.7	%)
Total Core		100.0	%		95.5	%		95.3	%		0.2	%
March vs. Quarter Comparison
Region	% Units			Mar '12			1Q '12			Variance
Baltimore		25.0	%		95.2	%		95.0	%		0.2	%
Washington, D.C.		24.7	%		95.8	%		95.3	%		0.5	%
New Jersey, Long Island		19.1	%		96.4	%		96.1	%		0.3	%
Philadelphia		14.8	%		95.6	%		95.3	%		0.3	%
Boston		7.9	%		96.8	%		95.8	%		1.0	%
Chicago		6.2	%		96.1	%		96.0	%		0.1	%
Florida		2.3	%		96.3	%		94.1	%		2.2	%
Total Core		100.0	%		95.9	%		95.5	%		0.4	%

Page 11

Net Operating Results - Core Properties

Sequential Results

First Quarter 2012 vs. Fourth Quarter 2011

				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		25.0	%		1.1	%		3.5	%		5.3	%		2.6	%
Washington, D.C.		24.7	%		0.8	%		2.3	%		4.1	%		1.4	%
New Jersey, Long Island		19.1	%		0.8	%		2.6	%		6.3	%		0.1	%
Philadelphia		14.8	%		0.9	%		3.6	%		3.7	%		3.6	%
Boston		7.9	%		1.4	%		2.2	%		13.8	%		(4.5	%)
Chicago		6.2	%		(0.4	%)		1.7	%		1.5	%		1.8	%
Florida		2.3	%		0.8	%		1.9	%		12.6	%		(8.7	%)
Total Core		100.0	%		0.9	%		2.8	%		5.6	%		1.1	%

Year Over Year Results

First Quarter 2012 vs. First Quarter 2011

				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		25.0	%		4.7	%		5.0	%		(4.2	%)		10.3	%
Washington, D.C.		24.7	%		5.2	%		4.6	%		0.0	%		7.3	%
New Jersey, Long Island		19.1	%		5.0	%		4.8	%		(2.8	%)		11.0	%
Philadelphia		14.8	%		6.2	%		3.2	%		(7.4	%)		12.2	%
Boston		7.9	%		5.7	%		6.6	%		(1.4	%)		12.8	%
Chicago		6.2	%		3.9	%		4.7	%		(4.9	%)		14.3	%
Florida		2.3	%		1.4	%		2.9	%		10.6	%		(5.2	%)
Total Core		100.0	%		5.1	%		4.6	%		(2.8	%)		9.9	%

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

Page 12

Percentage Change in New Lease and Renewal Lease Rents Compared to

Expiring Lease Rents - Core Properties

	1Q '11						2Q '11						3Q '11						4Q '11						YTD '11
Region	New			Renewal			New			Renewal			New			Renewal			New			Renewal			New			Renewal
Baltimore		1.9	%		3.5	%		5.2	%		4.3	%		3.5	%		4.1	%		0.0	%		3.8	%		3.0	%		4.0	%
Boston		2.0	%		3.5	%		6.8	%		4.3	%		5.0	%		4.2	%		2.6	%		4.3	%		4.6	%		4.2	%
Chicago		3.7	%		4.0	%		5.0	%		4.6	%		4.3	%		5.0	%		1.1	%		4.8	%		3.9	%		4.8	%
Florida		(1.8	%)		1.5	%		1.9	%		2.4	%		(0.8	%)		3.5	%		(0.1	%)		3.7	%		(0.3	%)		2.9	%
New Jersey, Long Island		0.3	%		3.2	%		4.6	%		3.4	%		5.7	%		3.8	%		3.3	%		3.9	%		4.2	%		3.7	%
Philadelphia		4.0	%		3.4	%		9.9	%		5.1	%		7.6	%		4.8	%		4.2	%		3.5	%		7.2	%		4.3	%
Washington, D.C.		2.7	%		4.4	%		4.8	%		4.7	%		5.2	%		4.4	%		3.6	%		4.3	%		4.4	%		4.5	%
Total Core		1.9	%		3.6	%		5.7	%		4.3	%		5.1	%		4.2	%		2.5	%		4.0	%		4.3	%		4.1	%
Spread (1)		1.7%						(1.4%)						(0.9%)						1.5%						(0.2%)

	1Q '12
Region	New			Renewal
Baltimore		0.1	%		3.6	%
Boston		3.8	%		4.1	%
Chicago		0.1	%		3.8	%
Florida		1.1	%		2.4	%
New Jersey, Long Island		1.9	%		4.0	%
Philadelphia		6.0	%		3.0	%
Washington, D.C.		1.3	%		4.1	%
Total Core		1.8	%		3.8	%
Spread (1)		2.0%

(1) Spread is the difference between the percentage change in rents on renewed leases compared to new leases.

Page 13

Resident Statistics

Top Six Reasons for Moveouts - Owned Communities
	1Q '12			4Q '11			3Q '11			2Q '11			1Q '11			Year '11			Year '10			Year '09
Eviction/skip		16.9	%		16.2	%		14.4	%		14.8	%		20.4	%		16.4	%		15.6	%		14.0	%
Transfer w/in HME		15.0	%		13.7	%		11.0	%		10.6	%		11.2	%		11.6	%		12.3	%		12.9	%
Employment related		12.6	%		12.3	%		12.9	%		13.6	%		15.0	%		13.4	%		13.9	%		15.7	%
Location convenience/
apartment size		11.7	%		12.8	%		14.1	%		13.0	%		12.6	%		13.1	%		12.1	%		10.1	%
Rent level		11.0	%		10.1	%		11.9	%		10.9	%		9.1	%		10.5	%		10.0	%		10.0	%
Home purchase		9.6	%		11.4	%		10.8	%		9.9	%		9.5	%		10.4	%		11.0	%		12.3	%
Traffic - Core							Turnover - Core
				Signed
	Traffic			Leases
	1Q '12			1Q '12
	vs.			vs.
	1Q '11			1Q '11			1Q '12			1Q '11
Region
Baltimore		4.7	%		15.9	%		8.1	%		7.4	%
Boston		9.5	%		(9.7	%)		6.7	%		6.9	%
Chicago		(0.8	%)		7.7	%		10.2	%		8.2	%
Florida		10.4	%		17.9	%		12.2	%		13.9	%
Long Island		(14.5	%)		(14.0	%)		6.8	%		6.8	%
New Jersey		12.9	%		(0.3	%)		8.1	%		7.8	%
Philadelphia		(4.5	%)		5.3	%		7.6	%		6.7	%
Washington, D.C.		(5.3	%)		18.9	%		7.9	%		6.9	%
Total Core		(0.2	%)		8.0	%		8.0	%		7.3	%
Bad Debt as % of Rent and Utility Recovery - Core
	1Q '12			1Q '11
		1.01	%		1.09	%

Page 14

Net Operating Income Detail

($ in thousands, except per unit data)

Core Properties
							Qtr			%
	1Q '12			1Q '11			Variance			Variance
Rent	$	129,372		$	123,097		$	6,275			5.1	%
Utility recovery		6,921			7,888			(967	)		(12.3	%)
Rent including recoveries		136,293			130,985			5,308			4.1	%
Other income		6,699			5,655			1,044			18.5	%
Total income		142,992			136,640			6,352			4.6	%
Operating & maintenance		(54,928	)		(56,523	)		1,595			2.8	%
Core Properties NOI	$	88,064		$	80,117		$	7,947			9.9	%
Physical Occupancy %		95.5	%		95.3	%		0.2	%
Weighted Avg Rent per Unit	$	1,207		$	1,152		$	55			4.8	%

Acquired Properties (1)				Redevelopment Properties (2)
	1Q '12				1Q '12
Rent	$	10,864		Rent	$	2,849
Utility recovery		597		Utility recovery		122
Rent including recoveries		11,461		Rent including recoveries		2,971
Other income		393		Other income		164
Total income		11,854		Total income		3,135
Operating & maintenance		(4,176	)	Operating & maintenance		(1,200	)
Acquired Properties NOI	$	7,678		Redevelopment Properties NOI	$	1,935
Physical Occupancy %		93.0	%	Physical Occupancy %		79.2	%
Weighted Avg Rent per Unit	$	1,372		Weighted Avg Rent per Unit	$	1,422

Development Properties (3)
	1Q '12
Rent	$	2,109
Utility recovery		23
Rent including recoveries		2,132
Other income		195
Total income		2,327
Operating & maintenance		(967	)
Development Properties NOI	$	1,360
Physical Occupancy %		73.9	%
Weighted Avg Rent per Unit	$	1,904

(1) Acquired Properties includes both acquired and stabilized development properties.

(2) Redevelopment Properties consists of one property, Arbor Park of Alexandria, where 851 units in fifty-two buildings are to be extensively renovated on a building by building basis.

(3) Development Properties consists of two properties, Courts at Huntington Station where construction was completed in 2011 and is currently in Lease up; and Cobblestone Square which is under construction with 129 units in service at March 31, 2012.

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 25.5%.  This will adjust the typical seasonal variability in NOI for each quarter.

Page 15

Operating Expense Detail - Core Properties

($ in thousands)

					Qtr			%
	1Q '12		1Q '11		Variance			Variance
Electricity	$	2,015	$	2,099	$	(84	)		(4.0	%)
Gas		5,887		7,629		(1,742	)		(22.8	%)
Water & sewer		4,324		4,221		103			2.4	%
Repairs & maintenance		6,287		5,988		299			5.0	%
Personnel expense		12,282		12,803		(521	)		(4.1	%)
Advertising		1,093		1,106		(13	)		(1.2	%)
Legal & professional		646		395		251			63.5	%
Office & telephone		1,821		1,488		333			22.4	%
Property insurance		2,245		1,805		440			24.4	%
Real estate taxes		13,281		12,787		494			3.9	%
Snow		249		1,476		(1,227	)		(83.1	%)
Trash		798		774		24			3.1	%
Property management G & A		4,000		3,952		48			1.2	%
Total Core	$	54,928	$	56,523	$	(1,595	)		(2.8	%)

Page 16

Summary Of Recent Acquisitions

($ in millions, except unit and per unit data)

											Wtd. Avg.
			Purchase	# of		CAP			Purchase		Price Per
Community	Market	State	Date	Units		Rate (1)			Price		Unit
2012 Acquisitions
			Total 2012		-				$	-
2011 Acquisitions
Hunters Glen	Suburban D.C.	MD	4/19/2011		108		7.2	%	$	7.0	$	64,815
Waterview Apartments	Philadelphia	PA	7/14/2011		203		5.7	%		24.6		121,182
The Commons at Haynes Farm	Boston	MA	7/15/2011		302		5.9	%		40.5		134,106
The Apartments at Cambridge Court	Baltimore	MD	8/23/2011		544		5.4	%		90.4		166,176
Somerset Park	Suburban D.C.	VA	10/11/2011		108		5.2	%		20.3		187,500
Newport Village	Suburban D.C.	VA	10/17/2011		937		5.4	%		205.0		218,783
The Courts at Dulles	Suburban D.C.	VA	11/30/2011		411		5.2	%		92.8		225,669
The Gates of Deer Grove	Chicago	IL	12/15/2011		204		6.2	%		20.2		99,020
			Total 2011		2,817		5.5	%	$	500.7	$	177,742
			Total 2012 and 2011 Acquisitions		2,817		5.5	%	$	500.7	$	177,742

(1) CAP rate based on projected NOI at the time of acquisition after an allowance for a 2.7% management fee but before capital expenditures.

Page 17

Summary Of Recent Sales

($ in millions, except unit and per unit data)

									Wtd. Avg.
			Sale	# of		CAP	Sales		Price Per
Community	Market	State	Date	Units		Rate(1)	Price		Unit
2012 Sales
			Total 2012		-		$	-
2011 Sales
			Total 2011		-		$	-
			Total 2012 and 2011 Sales		-		$	-

(1) CAP rate based on projected NOI at the time of sale after an allowance for a 2.7% management fee but before capital expenditures.

Page 18

Breakdown Of Owned Units By Market

				Net							Net
				Acquired/							Acquired/
		As of		Developed		As of		12/31/2011			Developed		As of		Current
Market	State	12/31/2010		in 2011		12/31/2011		% of Units			in 2012		3/31/2012		% of Units
Suburban Washington, D.C.	MD/VA		10,393		1,837		12,230		29.15	%		78		12,308		29.28	%
Baltimore	MD		9,440		544		9,984		23.80	%		-		9,984		23.76	%
Suburban New York City	NY/NJ		7,225		-		7,225		17.22	%		-		7,225		17.19	%
Philadelphia	PA		5,603		203		5,806		13.84	%		-		5,806		13.81	%
Boston	MA		3,002		302		3,304		7.88	%		-		3,304		7.86	%
Chicago	IL		2,362		204		2,566		6.12	%		-		2,566		6.11	%
Florida	FL		836		-		836		1.99	%		-		836		1.99	%
Total			38,861		3,090		41,951		100.0	%		78		42,029		100.0	%

Page 19

Debt Summary Schedule
		INTEREST		03/31/12		MATURITY	YEARS TO
PROPERTY	LENDER	RATE		BALANCE		DATE	MATURITY
FIXED RATE SECURED
Woodholme Manor	Prudential - Fannie Mae		7.165		3,346,089	07/01/12		0.25
Liberty Place	CW Capital - Fannie Mae		5.710		5,674,226	11/01/12		0.59
Hackensack Gardens - 1st	JPMorgan Chase - Fannie Mae		5.260		4,253,927	03/01/13		0.92
Hackensack Gardens - 2nd	JPMorgan Chase - Fannie Mae		5.440		4,164,495	03/01/13		0.92
Barrington Gardens	Wachovia - Freddie Mac		4.960		10,751,388	04/01/13		1.00
Canterbury Apartments - 1st	M&T Realty-Fannie Mae		5.020		25,894,178	05/01/13		1.08
Canterbury Apartments - 2nd	M&T Realty-Fannie Mae		6.460		16,348,853	05/01/13		1.08
Multi-Property	Prudential - Fannie Mae		6.475		100,000,000	08/31/13		1.42
Saddle Brook Apts. - 1st	Wells Fargo - Fannie Mae		5.840		26,574,436	11/01/13		1.59
Saddle Brook Apts. - 2nd	Wells Fargo - Fannie Mae		6.290		3,127,580	11/01/13		1.59
Falkland Chase	Centerline (CIII) - Fannie Mae		5.480		10,525,077	04/01/14		2.00
The Apts. At Wellington Trace	M&T Realty - Freddie Mac		5.520		23,320,445	04/01/14		2.00
Hawthorne Court	Centerline (CIII) - Fannie Mae		5.270		33,575,004	07/01/14		2.25
The Greens at Columbia	M&T Realty-Fannie Mae		3.930		9,486,943	08/01/14		2.34
Curren Terrace - 1st	M&T Realty - Freddie Mac		5.360		13,064,607	10/01/14		2.50
Curren Terrace - 2nd	M&T Realty - Freddie Mac		5.090		9,576,956	10/01/14		2.50
Westchester West - 1st	Deutsche Bank Berkshire - Freddie		6.150		26,403,903	03/01/15		2.92
Westchester West - 2nd	Deutsche Bank Berkshire - Freddie		6.640		7,352,532	03/01/15		2.92
Stratford Greens	Capital One Bank		5.750		30,279,483	07/01/15		3.25
Sayville Commons	M&T Realty - Freddie Mac		5.000		38,710,865	08/01/15		3.34
Charleston Place	Wells Fargo - Freddie Mac		3.770		32,443,056	09/01/15		3.42
Charleston Place	Wells Fargo - Freddie Mac		3.770		22,374,927	09/02/15		3.42
Charleston Place	Wells Fargo - Freddie Mac		3.770		19,552,739	09/03/15		3.43
Cypress Place Apartments	Prudential - Fannie Mae		6.555		10,033,420	11/01/15		3.59
Golf Club Apartments	Prudential - Fannie Mae		6.380		32,338,195	11/01/15		3.59
Northwood Apartments	M&T Realty - Freddie Mac		5.500		10,339,986	12/01/15		3.67
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.250		48,955,278	01/01/16		3.76
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.550		5,080,345	01/01/16		3.76
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.250		75,351,815	01/01/16		3.76
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.550		1,847,394	01/01/16		3.76
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.565		49,671,511	02/01/16		3.84
Devonshire - 1st	Wachovia - Fannie Mae		5.600		36,364,853	04/01/16		4.01
Devonshire - 2nd	Wachovia - Fannie Mae		6.235		8,208,630	04/01/16		4.01
Mid-Island	Prudential - Fannie Mae		5.480		19,084,724	04/01/16		4.01
Owings Run 1 & 2	Prudential - Fannie Mae		5.590		41,323,002	04/01/16		4.01
Country Village	Centerline (CIII) - Fannie Mae		5.520		18,249,203	06/01/16		4.17
Fox Hall Apartments	Columbia Nat'l - Freddie Mac		5.610		47,000,000	06/01/17		5.17
Mill Towne Village	Prudential - Fannie Mae		5.990		24,239,000	09/01/17		5.42
Royal Gardens Apts.	M&T Realty - Freddie Mac		5.830		47,000,000	11/01/17		5.59
Village Square 1, 2 & 3	Prudential - Fannie Mae		5.810		39,285,000	12/01/17		5.67
Chatham Hill	M&T Realty - Freddie Mac		5.590		43,664,779	01/01/18		5.76
William Henry Apartments	PNC - Fannie Mae		4.850		28,160,894	01/01/18		5.76
Seminary Towers Apartments	Prudential - Fannie Mae		5.485		53,515,000	07/01/18		6.25
The Manor (MD)	Prudential - Fannie Mae		4.230		45,673,463	11/01/18		6.59
Bonnie Ridge - 1st	Prudential Life		6.600		9,802,303	12/15/18		6.71
Bonnie Ridge - 2nd	Prudential Life		6.160		17,289,097	12/15/18		6.71
Bonnie Ridge - 3rd	Prudential Life		6.070		24,385,216	12/15/18		6.71
Annapolis Roads	Amerisphere - Fannie Mae		5.120		23,601,527	01/01/19		6.76
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.750		17,964,905	01/01/19		6.76
The Sycamores	M&T Realty - Freddie Mac		5.710		20,942,860	01/01/19		6.76
Top Field Apartments	M&T Realty - Fannie Mae		4.840		16,340,630	01/01/19		6.76
Westwood Village	M&T Realty - Freddie Mac		5.680		45,886,427	01/01/19		6.76
Timbercroft III - 2nd	M & T Realty - HUD		8.375		1,963,712	06/01/19		7.17
Timbercroft Townhomes 1 - 2nd	M & T Realty - HUD		8.375		1,333,212	06/01/19		7.17
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.470		12,123,343	07/01/19		7.25
Glen Manor	Prudential - Fannie Mae		5.830		7,796,635	08/01/19		7.34
Ridley Brook	Prudential - Fannie Mae		5.830		12,943,091	08/01/19		7.34
The Courts at Fair Oaks	CW Capital - Freddie Mac CME		4.500		48,886,602	08/01/19		7.34
Southern Meadows	Red Mortgage - Fannie Mae		5.360		40,113,257	10/01/19		7.51
Elmwood Terrace	M & T Realty - Fannie Mae		5.560		26,336,504	11/01/19		7.59
Lakeview	Greystone - Fannie Mae		5.310		8,941,250	12/01/19		7.67
The Landings	Prudential - Fannie Mae		5.600		25,763,622	01/01/20		7.76
East Meadow Apartments	M&T Realty - Freddie Mac		5.400		14,503,933	05/01/20		8.09
Selford Townhomes	M&T Realty - Freddie Mac		5.400		8,768,415	05/01/20		8.09
South Bay Manor	M&T Realty - Freddie Mac		5.400		6,649,381	05/01/20		8.09
Stone Ends Apts.	M&T Realty - Freddie Mac		5.400		24,697,702	05/01/20		8.09
Tamarron Apartments	M&T Realty - Freddie Mac		5.400		14,511,727	05/01/20		8.09
The Manor (VA)	M&T Realty - Freddie Mac		5.400		13,620,271	05/01/20		8.09
Woodmont Village	M&T Realty - Freddie Mac		5.400		9,827,445	05/01/20		8.09

Page 20

Debt Summary Schedule
			INTEREST		03/31/12		MATURITY	YEARS TO
PROPERTY		LENDER	RATE		BALANCE		DATE	MATURITY
FIXED RATE SECURED
Trexler Park		Greystone - Fannie Mae		4.340		37,905,759	08/01/20		8.34
Arbor Park of Alexandria		Prudential - Fannie Mae		4.350		95,563,027	11/01/20		8.59
New Orleans Park		M & T Realty - Fannie Mae		4.580		23,226,619	11/01/20		8.59
Racquet Club East		PNC - Fannie Mae		4.740		37,169,287	12/01/20		8.68
Heritage Woods Apts		Greystone - Fannie Mae		5.390		14,277,477	01/01/21		8.76
The Meadows at Marlborough		Prudential - Fannie Mae		5.500		20,852,229	01/01/21		8.76
Home Properties of Devon		M & T Realty - Fannie Mae		4.850		59,896,154	08/01/21		9.34
Pleasant View Gardens		Prudential - Fannie Mae		4.510		94,544,755	11/01/21		9.59
Dunfield Townhomes		Midland Mortgage - HUD		5.250		11,349,176	09/01/28		16.43
Highland House		Arbor Comml - Fannie Mae		6.320		5,693,982	01/01/29		16.77
Westwoods		Midland Loan Services - HUD		5.940		3,452,540	06/01/34		22.18
WTD AVG - FIXED SECURED				5.312		2,021,112,272			5.67
VARIABLE RATE SECURED
Virginia Village		Wachovia - Freddie Mac		2.057		28,895,222	07/01/15		3.25
Hill Brook Apts		M&T Realty - Freddie Mac		3.534		12,501,590	09/01/16		4.42
Wayne Village		M&T Realty - Freddie Mac		3.631		25,462,865	09/01/16		4.42
Cider Mill Apts		M&T Realty - Freddie Mac		3.414		61,159,839	01/01/17		4.76
The Heights at Marlborough		PNC Real Estate		3.614		23,011,614	01/01/17		4.76
Sherry Lake		M&T Realty - Freddie Mac		3.140		25,365,444	04/01/17		5.01
Falkland Chase		Montgomery Cty HOC-Fannie		1.222		24,695,000	10/01/30		18.52
WTD AVG - VARIABLE SECURED				2.973		201,091,574			6.20
WTD AVG - TOTAL SECURED DEBT				5.100		2,222,203,846			5.72
FIXED RATE UNSECURED
Private Placement Senior Notes - Series A		Various Investors		4.46		90,000,000	12/19/18		6.72
Private Placement Senior Notes - Series B		Various Investors		5.00		60,000,000	12/19/21		9.73
VARIABLE RATE UNSECURED
Bank Term Loan		M and T Bank et. al.		1.55		250,000,000	12/08/16		4.69
Revolving Line of Credit		M and T Bank et. al.		1.55		65,500,000	12/08/15		3.69
WTD AVG - TOTAL UNSECURED DEBT				2.557		465,500,000			5.59
TOTAL COMBINED DEBT				4.660		2,687,703,846			5.70
% OF PORTFOLIO - FIXED	80.8%
% OF PORTFOLIO - VARIABLE	19.2%
WTG AVG - TOTAL FIXED RATE DEBT				5.268					5.83
WTD AVG - TOTAL VARIABLE RATE DEBT				2.104					5.15
WTG AVG - COMBINED DEBT				4.660					5.70

TOTAL DEBT MATURITY SCHEDULE Exclusive of Revolving Line of Credit
YEAR OF MATURITY	FIXED RATE				VARIABLE RATE				TOTAL
	WTD AVG				WTD AVG						% OF
	RATE		DEBT		RATE		DEBT		DEBT		TOTAL
2012		6.25		9,020,316		-		-		9,020,316		0.34	%
2013		6.05		191,114,857		-		-		191,114,857		7.29	%
2014		5.22		99,549,033		-		-		99,549,033		3.80	%
2015		5.17		229,829,107		2.06		28,895,222		258,724,329		9.87	%
2016		5.45		304,136,755		1.82		287,964,454		592,101,209		22.58	%
2017		5.78		157,524,000		3.39		109,536,897		267,060,897		10.18	%
2018		5.08		312,490,751		-		-		312,490,751		11.92	%
2019		5.36		285,173,954		-		-		285,173,954		10.88	%
2020		4.83		312,207,187		-		-		312,207,187		11.91	%
2021 - 2034		4.90		270,066,312		1.22		24,695,000		294,761,312		11.24	%
TOTAL		5.268	$	2,171,112,272		2.1842	$	451,091,574	$	2,622,203,846		100.00	%

Page 21

Unencumbered Properties

3/31/2012

Property	# Units		Market	State
Gateway Village		132	Baltimore	MD	*
Middlebrooke Apartments		208	Baltimore	MD
Morningside Heights		1,050	Baltimore	MD
The Coves at Chesapeake		469	Baltimore	MD
Westbrooke Apartments		110	Baltimore	MD
Cambridge Court		544	Baltimore	MD
Gardencrest		696	Boston	MA
The Commons at Haynes Farm		302	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
Lakeview Townhomes		120	Chicago	IL
The Colony		783	Chicago	IL
The Gates of Deer Grove		204	Chicago	IL
The New Colonies		672	Chicago	IL	*
Bayview & Colonial		160	Long Island	NY
Cambridge Village		82	Long Island	NY
Crescent Club		257	Long Island	NY
Heritage Square		80	Long Island	NY
Holiday Square		144	Long Island	NY
Lake Grove Apartments		368	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
Castle Club		158	Philadelphia	PA	*
Chesterfield Apartments		247	Philadelphia	PA
Glen Brook		174	Philadelphia	PA
Racquet Club South		103	Philadelphia	PA
Waterview		203	Philadelphia	PA
1200 East West Highway		247	Suburban Washington, DC	MD
Hunter's Glen		108	Suburban Washington, DC	MD
Seminary Hill		296	Suburban Washington, DC	MD
The Courts at Huntington Station		421	Suburban Washington, DC	MD
Woodleaf Apartments		228	Suburban Washington, DC	MD
Braddock Lee		255	Suburban Washington, DC	VA
Cobblestone Square		129	Suburban Washington, DC	VA
Mt. Vernon Square		1,387	Suburban Washington, DC	VA
Newport Village		937	Suburban Washington, DC	VA
Somerset Park		108	Suburban Washington, DC	VA
The Courts at Dulles		411	Suburban Washington, DC	VA
Village at Potomac Falls		247	Suburban Washington, DC	VA
Total Number of Units:		13,915
Total Number of Properties:		45

* Property added to unencumbered pool during current quarter.

Page 22

Recurring Capital Expenditure Summary

Effective January 1, 2012, 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 $848 per apartment unit compared to $800 in the prior year.  This new amount better reflects current actual costs and the effects of inflation since the last update.

The Company's policy is to capitalize costs related to the acquisition, development, rehabilitation, construction and improvement of properties.  Capital improvements are costs that increase the value and extend the useful life of an asset.  Ordinary repair and maintenance costs that do not extend the useful life of the asset are expensed as incurred.  Costs incurred on a lease turnover due to normal wear and tear by the resident are expensed on the turn.  Recurring capital improvements typically include appliances, carpeting and flooring, HVAC equipment, kitchen and bath cabinets, new roofs, site improvements and various exterior building improvements.   Non-recurring, revenue generating upgrades include, among other items community centers, new windows, and kitchen and 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	$	1,624		9	$	180	$	13	$	193
Blinds, shades		135		3		45		5		50
Carpets, cleaning		760		4		190		142		332
Computers, equipment, misc.(4)		120		6		20		2		22
Contract repairs		-		-		-		250		250
Exterior painting (5)		84		3		28		-		28
Flooring		250		9		28		24		52
Furnace, air (HVAC)		854		24		36		24		60
Hot water heater		293		7		42		-		42
Interior painting		-		-		-		178		178
Kitchen, bath cabinets upgrades		1,200		15		80		-		80
Landscaping site		-		-		-		120		120
New roof		880		24		37		-		37
Parking lot site		750		15		50		-		50
Pool, exercise facility		147		15		10		38		48
Windows major		1,663		20		83		-		83
Miscellaneous (6)		326		17		19		-		19
Total	$	9,086			$	848	$	796	$	1,644

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

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

(3) These expenses are included in the Operating and Maintenance line item of the Consolidated Statement of Operations.  Maintenance labor costs are not included in the $796 per unit estimate.  All personnel costs for site supervision, leasing agents, and maintenance staff are combined and disclosed in the Company's Core Properties expense detail schedule.

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

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

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

The breakdown of costs above reflects the Company's unique strategies to improve every property every year regardless of age, and to purchase older properties and rehabilitate and reposition them to enhance internal rates of return.  These strategies result in higher costs of capital expenditures and maintenance costs which permit the Company to realize higher revenue growth, higher net operating income growth and a higher rate of property appreciation.

Page 23

Capital Expenditure Summary

The Company estimates that on an annual basis $848 per unit is spent on recurring capital expenditures in 2012.  During the three months ended March 31, 2012 approximately $212 per unit was spent on recurring capital expenditures.  The table below summarizes the actual total capital improvements incurred by major categories and an estimate of the breakdown of total capital improvements by major categories between recurring, and non-recurring revenue generating capital improvements for the three months ended March 31, 2012 as follows:

For the three months ended March 31, 2012

($ 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	$	-	$	-	$	172	$	4	$	172	$	4
Major building improvements		1,320		33		1,813		45		3,133		78
Roof replacements		376		9		63		2		439		11
Site improvements		609		15		1,880		46		2,489		61
Apartment upgrades		1,270		31		10,424		257		11,694		288
Appliances		1,828		45		68		2		1,896		47
Carpeting/flooring		2,214		55		1,118		28		3,332		83
HVAC/mechanicals		792		19		2,367		58		3,159		77
Miscellaneous		203		5		1,071		26		1,274		31
Totals	$	8,612	$	212	$	18,976	$	468	$	27,588	$	680

 (a) Calculated using the weighted average number of units owned, including 37,811 core units and 2011 acquisition units of 2,817 for the three months ended March 31, 2012.

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

For the three months ended March 31, 2012

($ in thousands, except per unit data)

					Non-				Total
	Recurring				Recurring				Capital
	Cap Ex		Per Unit(a)		Cap Ex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	8,015	$	212	$	16,204	$	429	$	24,219	$	641
2011 Acquisition Communities		597		212		2,772		984		3,369		1,196
Sub-total		8,612		212		18,976		468		27,588		680
Corporate office expenditures (b)		-		-		-		-		798		-
	$	8,612	$	212	$	18,976	$	468	$	28,386	$	680

(a) Calculated using the weighted average number of units owned, including 37,811 core units and 2011 acquisition units of 2,817 for the three months ended March 31, 2012.

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

Adjusted Net Operating Income - Core Properties

($ in thousands)

	Quarter			Quarter
	3/31/2012			3/31/2011		Change
Net Operating Income	$	88,064		$	80,117		9.9	%
Less: Non Recurring Cap Ex @ 6%		(972	)		-		-
Adjusted Net Operating Income	$	87,092		$	80,117		8.7	%

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

Page 24

Development Pipeline as of March 31, 2012

($ in thousands)

# of

Estimated

%

Property

Units at

Estimated

Costs

Costs

Construction

Initial

Construction

Physical

Type

Completion

Costs

Per Unit

Incurred (3)

Start

Occupancy

Completion

Occupancy

Under construction:

Eleven55 Ripley

High Rise

379

$

111,200

$

293.4

$

32,851

4Q 11

3Q 13

1Q 14

n/a

Silver Spring, MD

The Apartments at Cobblestone Square

Garden

314

49,100

156.4

40,903

1Q 11

4Q 11

1H 12

73.6

% (1)

Fredericksburg, VA

Pre-construction:

Courts at Spring Mill Station

Donut/Podium

385

89,000

231.2

13,861

2Q 12

2H 13

1H 14

n/a

Conshohocken, PA

Falkland North (2)

High Rise

tbd

tbd

tbd

4,549

tbd

tbd

tbd

n/a

Silver Spring, MD

Under contract:

Westpark Tysons (part of Arbor Row      final development plan) (2)

Mid Rise/High Rise

600

+

205,000

tbd

629

1H 14

tbd

tbd

n/a

Tysons Corner, VA

Total

$

92,793

(1) Physical occupancy percentage is calculated using 129 available units at March 31, 2012.

(2) Costs incurred are classified as Other Assets at March 31, 2012 for these projects.

(3) Costs classified as Construction in Progress at March 31, 2012 are comprised of:

Courts at Spring Mill Station	$	13,861
Eleven55 Ripley		32,851
The Apartments at Cobblestone Square		26,601
	$	73,313

Page 25

	Actual
2012 Earnings Guidance	First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter		Year
2012 compared to 2011
FFO per share - 2012 guidance	$	0.979		$	.93 - $.97		To be provided				$	3.87 - $3.99
Actual/Midpoint of guidance	$	0.979		$	0.95		next quarter				$	3.93
FFO per share - 2011 actual	$	0.865		$	0.867		$	0.866	$	0.934	$	3.539
Improvement projected		13.2	%		9.6	%						11.1	%

The range for the year has been changed only to reflect the actual results for the first quarter as compared to expectations. The Company will consider updating the annual expectations at the time of the release of second quarter earnings.

2012 compared to 2011 based on "Operating FFO"

FFO per share - 2012 Operating FFO	$	0.979		$	.94 - $.98		To be provided				$	3.90 - $4.02
Midpoint of guidance	$	0.979		$	0.96		next quarter				$	3.96
Operating FFO per share - 2011 actual	$	0.865		$	0.869		$	0.896	$	0.959	$	3.599
Improvement projected		13.2	%		10.5	%						10.0	%
Difference between FFO and OFFO is expensed acquisition costs

The range for the year has been changed only to reflect the actual results for the first quarter as compared to expectations. The Company will consider updating the annual expectations at the time of the release of second quarter earnings.

Same store assumptions:

Same store total revenue growth	4.6	%	4.7	%	To be provided	(1	)	4.0% to 5.0%
Same store expense growth	-2.8	%	3.5	%	next quarter	(2	)	2.0% to 3.0%
Same store NOI growth	9.9	%	5.5	%		(3	)	5.0% to 7.0%

(1) The range of same store total revenue growth remains unchanged from original guidance given in February.

(2) The range for same store expense growth has been reduced from the 3.0% to 4.0% range provided in February reflecting 1ST QTR outperformance.

(3) The range for same store NOI growth has been increased from the 4.0% to 5.0% range provided in February reflecting 1ST QTR outperformance.

Occupancy assumptions:
Same store 2012 physical occupancy	95.5	%	96.0	%					95.5	%
Same store 2011 physical occupancy	95.3	%	95.8	%	95.5	%	95.3	%	95.5	%
Change in occupancy	0.2	%	0.2	%					0.0	%

The range for the year has been changed only to reflect the actual results for the first quarter as compared to expectations. The Company will

consider updating the annual expectations at the time of the release of second quarter earnings.

Page 26

2012 Earnings Guidance

General & Administrative costs are expected to increase 3.6% at the midpoint and range between $29.8 million and $30.6 million.  The first two quarters are when we anticipate normal equity grants, pushing the dollar amount up higher in comparison to the year as a whole.  We expect the first quarter to range from $7.9 million to $8.1 million, and the second quarter to range from $9.6 million to $9.8 million.  The last two quarters settle back down to a range of $6.1 million to $6.3 million.Unchanged from original guidance

Interest Expense is projected to be $127.5 million to $128.1 million for the year, without significant differences between the quarters.  Greater use of the lower rate line of credit will offset increased expense from development units placed in service.  The secured loans that mature in 2012 have a weighted average interest rate of 6.9%.  Our plan is to pay these off using the line of credit, also producing savings.Unchanged from original guidance

	Actual		Unchanged from original guidance
	First		Second		Third		Fourth		Year
	Quarter		Quarter		Quarter		Quarter		Quarter
Development NOI 2012 projected run rate	$	60	$	175	$	400	$	625	$	1,260
(This only represents properties still under construction.  For 2012 that is Cobblestone Square.)

Acquisition range of $200 million to $300 million.		Unchanged from original guidance
Anticipated expense from acquisition costs for 2012 of $1.6 million versus actual of $3.2 million in 2011.		Unchanged from original guidance
Disposition range of $50 million to $150 million		Unchanged from original guidance
Development spend of $90 million.		Unchanged from original guidance
Capital expenditures:
Recurring	$34 million	Unchanged from original
Upgrading and repositioning	$100 million	guidance