EXHIBIT 99

Home Properties, Inc.

Earnings Release and Supplemental Information

Second Quarter 2014

Table of Contents

	Page
Earnings Release	1-9
Property Results, Quarterly and Year-to-Date	10-17
Physical Occupancy Comparison by Region	18
Operating Results by Region	19
New Lease and Renewal Lease Rents vs. Expiring Lease Rents	20
Resident Statistics	21
Net Operating Income Detail and Seasonality Factor for NAV Calculation	22
Operating Expense Detail	23
Discontinued Operations	24
Summary of Recent Acquisitions	25
Summary of Recent Sales	25
Breakdown of Units	26
Debt Summary Schedule	27-31
Recurring Capital Expenditure and Adjusted NOI Summary	32-34
Development Pipeline	35
2014 Earnings Guidance	36-38

FOR IMMEDIATE RELEASE

Home Properties Reports Second Quarter 2014 Results and

Announces Quarterly Dividend

-Positive Portfolio Operating Trends

-Exiting New Development Business

-Reaffirming Commitment to Existing Markets

ROCHESTER, N.Y., July 31, 2014 – Home Properties, Inc. (NYSE: HME) today reported financial results for the quarter and six months ended June 30, 2014. All per share results are reported on a diluted basis.

Results for the Quarter

·   Earnings per share (“EPS”) was $0.39 per share, as compared to $0.51 per share in the second quarter of 2013. The decrease in EPS is primarily attributable to one-time charges of approximately $3.8 million incurred in connection with the Company’s exit from the business of developing new apartment communities, as described in detail below, and lower gains on the disposition of property in 2014.

·   Funds from Operations ("FFO") was $1.04 per share, as compared to $1.11 per share in the prior year period. The decrease in FFO is primarily attributable to the $3.8 million charges related to the Company’s exit from new development.

·   Operating Funds from Operations (“OFFO”) was $1.11 per share, as compared to $1.11 per share in the prior year period.

Results for the Six Months

·   EPS was $1.18 per share, as compared to $1.50 per share in the first six months of 2013.

·   FFO was $2.04 per share, as compared to $2.17 per share in the prior year period.

·   OFFO was $2.10 per share, as compared to $2.17 per share in the prior year period.

Definitions of FFO and OFFO, and reconciliations of GAAP net income to these measures, are provided in the financial data section of this release.

“The past four months have been very active at Home Properties, as we continue to focus on the creation of stockholder value throughout the organization,” said Edward J. Pettinella, President and Chief Executive Officer. “Our property management team has been successful in their efforts to increase rents and occupancy, and I am encouraged by improving portfolio trends in the second quarter, with new leases executed at rents 3.0% higher than expiring leases and renewals 3.2% higher. We are making significant strides in occupancy as well, with a 40 basis point improvement over the first quarter of 2014. The acquisition of two apartment communities was completed and we are on pace to meet our goal of acquiring $150 to $250 million of properties in 2014.”

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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Pettinella continued: “After thoughtful consideration and deliberation, we decided to exit the new development business. We believe that this change in strategy is a positive one as it simplifies the investment story for Home Properties, reduces risk, and allows management to spend more time on what Home does best – own, operate, acquire, and reposition Class C/B apartment communities.

We also completed our review of existing and potential new markets. We identified no new markets for expansion and are reaffirming our commitment to the markets in which we operate today.”

Same-Property Operating Results (1)

	Second Quarter 2014 Compared to Second Quarter 2013	Second Quarter 2014 Compared to First Quarter 2014
Rental Income	2.4 % increase	1.5% increase
Total Revenues	2.4% increase	0.1% decrease
Property Level
Operating Expenses	2.0% increase	9.7% decrease
Net Operating Income (“NOI”)	2.6% increase	6.1% increase
Average Physical	95.4%, or a	95.4%, or a
Occupancy(2)	40 basis point decrease	40 basis point increase
Average Monthly Rental Rates	2.8% increase to $1,323	1.0% increase to $1,323

(1) For 115 core properties containing 39,915 apartment units owned since January 1, 2013

(2) Average physical occupancy – defined as the number of occupied apartment units divided by total apartment units

For the six months ended June 30, 2014, same-property total revenues increased 2.6% and property level operating expenses increased 5.5%, resulting in a 0.9% increase in NOI, as compared to the first six months of 2013. The increase in property level operating expenses is largely the result of costs incurred in the first quarter of 2014 related to record severe winter weather in the majority of the Company’s operating markets.

Exit from New Development Business

The Company announced today that it is exiting the business of developing new apartment communities. The two projects currently under construction will be completed – Eleven55 Ripley in Silver Spring, Maryland and The Courts at Spring Mill Station in Conshohocken, Pennsylvania. No additional new apartment communities will be started.

“We have created significant value through our development activities and are very proud of the seven Class A projects developed and currently valued at more than $530 million,” commented Mr. Pettinella. “However, we believe that it is in the best interest of the Company’s stockholders for us to dissolve our new development platform and focus 100% on our core differentiating strategy of acquiring and redeveloping mature apartment communities.”

In the second quarter of 2014, the Company recognized a non-cash charge for the impairment in value of land parcels that will not be developed and other related charges of approximately $3.8 million. This one-time charge does not negatively impact OFFO. Net severance charges in connection with the elimination of development employee positions, totaling approximately $1.8 million, will be expensed over the third and fourth quarters of 2014 and the first quarter of 2015. In addition, the Company expects to recognize approximately $1.2 million of interest expense related to land and predevelopment carrying costs in the third and fourth quarters of 2014 that would have otherwise been capitalized.

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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The Company anticipates that gains on the sale of its remaining development land parcels over the course of the next year will be equal to or greater than the combined impairment and severance charges and interest expense triggered by its exit from the new development business.

Commitment to Existing Markets

In the normal course of operating its business, the Company conducts periodic reviews of potential new markets in conjunction with a thorough review of its existing footprint. The process begins with a review of data and analysis provided by third party consultants, followed by significant research completed by internal personnel, including visits to the various markets, meetings with brokers and property owners, and the completion of underwriting analysis. This process was recently completed and the Company identified no new markets that meet its investment requirements; therefore, it has no plans to enter into any new markets.

Today, the Company is reaffirming its commitment to the existing HME markets of Baltimore, Boston, Chicago, Southeast Florida, Long Island, Northern New Jersey, Philadelphia and Washington, D.C. and will continue to seek acquisition opportunities in all of these markets.

Acquisitions

On June 19, the Company acquired The Preserve at Milltown in Downingtown, Pennsylvania. The 376-unit garden apartment community is located 33 miles northwest of Philadelphia in Chester County near Downingtown Station, which provides train access to Philadelphia, New York City and surrounding communities. The Preserve also has excellent access to employment centers and services.

The Preserve was built in 1975 and consists of 23 two-story buildings with brick and vinyl exteriors, balconies and pitched roofs. During the first three years of ownership, the Company expects to invest a total of $3.6 million in interior renovations, upgrading 15% of the community’s apartments each year as leases expire.

At closing, The Preserve was 93.4% occupied at monthly rents averaging $1,084 per unit. The Company expects a 6.3% first year capitalization rate on its investment after allocating 2.7% of rental revenues for management and overhead expenses and before normalized capital expenditures.

On July 30, the Company acquired Willowbrook Apartments in Jeffersonville, Pennsylvania. The 248-unit garden apartment community is located in Montgomery County in the King of Prussia/Valley Forge area. Willowbrook has immediate access to employment centers and a wide range of cultural, entertainment and recreational opportunities.

Willowbrook was built in 1972 and consists of eight two-story buildings with stucco veneer exteriors, vinyl siding accents on the gables, and pitched roofs. During the first three years of ownership, the Company expects to invest a total of $2.3 million in interior renovations, adding in-unit laundry equipment and upgrades as leases expire.

At closing, Willowbrook was 96% occupied at monthly rents averaging $1,230 per unit. The Company expects a 6.8% first year capitalization rate on its investment after allocating 2.7% of rental revenues for management and overhead expenses and before normalized capital expenditures.

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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Capital Markets

On June 30, the Company repaid two fixed rate mortgages:

·   a $31.7 million 5.27% fixed rate mortgage with a July 1, 2014 maturity date and

·   a $10.3 million 5.25% fixed rate mortgage with a September 1, 2028 maturity date.

Both properties have been added to the Company’s unencumbered asset pool.

As of June 30, 2014:

·   The Company had approximately $9 million of cash on hand and an additional $162 million of available capacity on its corporate credit facility.

·   Unencumbered assets represented 55.7% of total undepreciated assets, up from 51.9% at December 31, 2013.

·   The Company’s ratio of debt-to-total market capitalization was 35.8%.

·   Total debt of $2.4 billion was outstanding at a weighted average interest rate of 4.3% and staggered maturities averaging 4 years.

·   Approximately 87% of totaled indebtedness was at fixed rates.

·   Interest coverage for the quarter was 4.0 times and the fixed charge ratio was 3.7 times.

2014 Guidance

Based on actual year-to-date results and expectations for the balance of the year, the Company has decreased the midpoint of its prior FFO guidance by $0.13 per share, to $4.35, and the range of FFO per share to $4.31 to $4.39. Quarterly 2014 FFO per share guidance is as follows: third quarter range of $1.11 to $1.15 and fourth quarter range of $1.16 to $1.20.

The midpoint of 2014 OFFO per share guidance has been decreased by $0.07 per share to $4.42 with a range of $4.38 to $4.46. Quarterly guidance for the balance of the year is equal to the FFO ranges provided above.

A significant portion of the reduction in guidance is directly attributable to the Company’s exit from the new development business: $0.10 for FFO and $0.04 for OFFO. In addition, extreme weather conditions experienced in the first quarter of 2014 resulted in delays in completing units in the two development projects currently under construction, resulting in reduced NOI from these properties of $0.02 per share for both FFO and OFFO. Guidance for operating results from Core Properties, G&A, and interest expense have been reduced by $0.01 per share for the balance of the year.

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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A reconciliation of May 1 to current guidance is provided below:

FULL YEAR 2014 GUIDANCE(1)
	Per Share
	FFO			OFFO
May 1, 2014 Guidance	$	4.48		$	4.49
Change to Guidance as a result of second quarter actual results:
Impairment and other charges related to exit from new development business	$	(0.06	)	NA
Changes to third and fourth quarter Guidance:
Amounts triggered due to exit from new development business
Severance	$	(0.02	)	$	(0.02	)
Reduced capitalized interest on land parcels previously designated for development	$	(0.02	)	$	(0.02	)
Delayed NOI from two development projects under construction	$	(0.02	)	$	(0.02	)
Normal operations – NOI, interest expense, G&A	$	(0.01	)	$	(0.01	)
Current Guidance	$	4.35		$	4.42

(1) Represents the mid-point of Guidance range; additional details included in quarterly Supplemental Information available at www.homeproperties.com in the Investors section.

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.73 per share for the quarter ended June 30, 2014. The dividend is payable on August 27, 2014 to shareholders of record on August 13, 2014 and is equivalent to an annualized rate of $2.92 per share. The current annual dividend represents a 4.4% yield based on the July 30 closing price of $66.69. Home Properties’ common stock will begin trading ex-dividend on August 11, 2014.

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.

Second Quarter 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 of the Company’s website, www.homeproperties.com. For live audio-only participation, please dial 800-913-1647 (International 212-231-2900).

Third Quarter Conference/Event Schedule

Home Properties is scheduled to participate in the Bank of America Merrill Lynch 2014 Global Real Estate Conference on September 10-11 in New York City, the BMO Capital Markets 9th Annual North American Real Estate Conference on September 15-16 in Chicago, and the Western New York Investors Conference on September 26 in Buffalo, New York. Presentation materials will be available at www.homeproperties.com in the “Investors” section.

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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Third Quarter Earnings Release and Conference Call

The Company’s third quarter 2014 financial results are scheduled to be released after the stock market closes on Thursday, October 30, 2014. A conference call, which will be simultaneously webcast, is scheduled for Friday, October 31, 2014 at 11:00 AM ET. It will be accessible following the instructions for the current quarter's conference call.

Forward-Looking Statements

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 are described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K and in other filings with the Securities and Exchange Commission and 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. The Company assumes no obligation to update or supplement forward-looking statements because of subsequent events.

About Home Properties

Home Properties is a publicly traded apartment real estate investment trust that owns, operates, acquires and rehabilitates apartment communities primarily in suburbs of major metropolitan areas in selected Northeast and Mid-Atlantic markets. An S&P 400 Company, Home Properties owns and operates 121 communities containing 42,198 apartment units. For more information, visit Home Properties’ website at www.homeproperties.com.

Home Properties Reports Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
Rental income	$	155,022		$	149,313		$	307,375		$	296,607
Property other income		13,170			12,828			28,730			27,008
Other income		179			215			321			464
Total revenues		168,371			162,356			336,426			324,079
Operating and maintenance		60,302			57,942			126,761			118,000
General and administrative		7,127			7,337			16,384			16,420
Interest		25,196			28,690			50,523			58,685
Depreciation and amortization		45,167			42,002			89,546			83,414
Other expenses		274			16			282			32
Impairment and other charges		3,842			-			3,842			-
Total expenses		141,908			135,987			287,338			276,551
Income from continuing operations		26,463			26,369			49,088			47,528
Discontinued operations
Income (loss) from discontinued operations		-			1,385			40			2,193
Gain on disposition of property		-			4,645			31,306			45,004
Discontinued operations		-			6,030			31,346			47,197
Net income		26,463			32,399			80,434			94,725
Net income attributable to noncontrolling interest		(3,994	)		(5,363	)		(12,174	)		(15,809	)
Net income attributable to common stockholders	$	22,469		$	27,036		$	68,260		$	78,916
Reconciliation from net income attributable to     common stockholders to Funds From Operations:
Net income attributable to common stockholders	$	22,469		$	27,036		$	68,260		$	78,916
Real property depreciation and amortization		44,587			42,695			88,676			85,360
Noncontrolling interest		3,994			5,363			12,174			15,809
Gain on disposition of property		-			(4,645	)		(31,306	)		(45,004	)
FFO - basic and diluted, as defined by NAREIT		71,050			70,449			137,804			135,081
Loss from early extinguishment of debt in connection with sale of real estate		-			-			802			1,416
FFO - basic and diluted (1)	$	71,050		$	70,449		$	138,606		$	136,497

(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 adds back debt extinguishment costs and other one-time costs incurred as a result of repaying property specific debt triggered upon sale of a 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 Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2014			2013			2014			2013
FFO – basic and diluted	$	71,050		$	70,449		$	138,606		$	136,497
FFO – basic and diluted	$	71,050		$	70,449		$	138,606		$	136,497
Acquisition costs of closed deals included in other expenses		274			16			282			32
Impairment and other charges		3,842			-			3,842			-
Operating FFO (2)	$	75,166		$	70,465		$	142,730		$	136,529
FFO – basic and diluted	$	71,050		$	70,449		$	138,606		$	136,497
Recurring non-revenue generating capital expenses		(9,094	)		(8,901	)		(18,225	)		(17,934	)
AFFO (3)	$	61,956		$	61,548		$	120,381		$	118,563
Operating FFO	$	75,166		$	70,465		$	142,730		$	136,529
Recurring non-revenue generating capital expenses		(9,094	)		(8,901	)		(18,225	)		(17,934	)
Operating AFFO (2) (3)	$	66,072		$	61,564		$	124,505		$	118,595
Weighted average shares/units outstanding:
Shares – basic		57,247.9			52,299.4			57,162.3			51,954.6
Shares – diluted		57,795.1			52,922.0			57,660.2			52,581.5
Shares/units – basic (4)		67,452.0			62,695.4			67,379.1			62,366.2
Shares/units – diluted (4)		67,999.3			63,318.0			67,877.0			62,993.0
Per share/unit:
Net income – basic	$	0.39		$	0.52		$	1.19		$	1.52
Net income – diluted	$	0.39		$	0.51		$	1.18		$	1.50
FFO – basic	$	1.05		$	1.12		$	2.06		$	2.19
FFO – diluted	$	1.04		$	1.11		$	2.04		$	2.17
Operating FFO (2)	$	1.11		$	1.11		$	2.10		$	2.17
AFFO (3)	$	0.91		$	0.97		$	1.77		$	1.88
Operating AFFO (2) (3)	$	0.97		$	0.97		$	1.83		$	1.88
Common Dividend paid	$	0.73		$	0.70		$	1.46		$	1.40

(2) Operating FFO is defined as FFO adjusted for the addback of acquisition costs on closed deals and land impairment costs.

(3) Adjusted Funds From Operations ("AFFO") is defined as FFO less an annual reserve for anticipated recurring, non-revenue generating capitalized costs of $900 and $848 per apartment unit in 2014 and 2013, respectively. 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 Second Quarter 2014 Results and Announces Quarterly Dividend

July 31, 2014

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	June 30, 2014			December 31, 2013
Land	$	812,204		$	786,868
Land held for sale		13,734			-
Construction in progress		136,957			187,976
Buildings, improvements and equipment		4,680,578			4,645,921
		5,643,473			5,620,765
Accumulated depreciation		(1,303,082	)		(1,243,243	)
Real estate, net		4,340,391			4,377,522
Cash and cash equivalents		9,382			9,853
Cash in escrows		26,451			23,738
Accounts receivable		12,973			14,937
Prepaid expenses		11,264			22,089
Deferred charges		10,281			11,945
Other assets		3,484			7,793
Total assets	$	4,414,226		$	4,467,877
Mortgage notes payable	$	1,675,731		$	1,814,217
Unsecured notes payable		450,000			450,000
Unsecured line of credit		282,500			193,000
Accounts payable		28,919			27,540
Accrued interest payable		7,757			8,392
Accrued expenses and other liabilities		33,817			33,936
Security deposits		18,930			18,479
Total liabilities		2,497,654			2,545,564
Common stockholders’ equity		1,628,360			1,629,253
Noncontrolling interest		288,212			293,060
Total equity		1,916,572			1,922,313
Total liabilities and equity	$	4,414,226		$	4,467,877
Total shares/units outstanding:
Common stock		57,330.6			56,961.6
Operating partnership units		10,201.0			10,287.2
		67,531.6			67,248.8

For Further Information:

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

Shelly J. Doran, Vice President, Investor Relations, (585) 295-4227

###

Property Results
Second Quarter 2014															2Q '14 Versus 2Q '13
			2Q '14												% Growth												2Q '14
	# of		Company			Date	2Q '14		2Q '14			2Q '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Baltimore
Annapolis Roads		282				6/17/2010	$	1,329		95.4	%		93.6	%		1.6	%		2.9	%		0.8	%		3.9	%
Bonnie Ridge		960				7/1/1999		1,190		94.1	%		93.9	%		2.5	%		0.5	%		0.5	%		0.5	%
Canterbury		618				7/15/1999		1,077		94.0	%		95.4	%		3.2	%		1.8	%		8.0	%		(1.2	%)
Charleston Place		858				9/30/2010		1,268		95.6	%		96.0	%		3.5	%		2.5	%		4.3	%		1.7	%
Country Village		344				4/30/1998		1,039		95.0	%		93.4	%		(0.5	%)		1.1	%		3.4	%		(0.2	%)
Dunfield		312				11/1/2007		1,266		93.6	%		94.6	%		1.0	%		(1.3	%)		9.9	%		(6.3	%)
Fox Hall		720				3/28/2007		962		92.2	%		93.4	%		4.3	%		(0.8	%)		(0.6	%)		(1.0	%)
Gateway Village		132				7/15/1999		1,452		97.7	%		97.2	%		2.4	%		3.5	%		9.9	%		0.7	%
Heritage Woods		164				10/4/2006		1,196		97.4	%		94.8	%		0.7	%		2.3	%		11.2	%		(2.1	%)
Howard Crossing		1,350				6/28/2012		1,163		93.8	%		95.4	%		3.6	%		3.6	%		6.0	%		2.4	%
Middlebrooke		208				4/1/2010		1,049		96.7	%		96.5	%		4.1	%		8.1	%		8.3	%		7.9	%
Mill Towne Village		384				5/31/2001		975		96.7	%		96.0	%		2.1	%		4.3	%		7.8	%		2.3	%
Morningside Heights		1,050				4/30/1998		1,010		93.1	%		93.9	%		4.4	%		3.4	%		15.0	%		(1.3	%)
Owings Run		504				7/15/1999		1,346		95.7	%		96.1	%		3.5	%		3.4	%		(2.7	%)		6.0	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,278		94.4	%		96.4	%		2.3	%		3.3	%		9.4	%		(0.1	%)
Saddle Brooke		468				10/29/2008		1,201		96.8	%		94.5	%		5.2	%		8.4	%		5.5	%		9.8	%
Selford		102				7/15/1999		1,515		97.3	%		95.7	%		3.0	%		4.7	%		2.9	%		5.4	%
The Apts. at Cambridge Court		544				8/23/2011		1,372		94.0	%		92.8	%		0.5	%		3.3	%		(0.7	%)		5.5	%
The Coves at Chesapeake		469				11/20/2006		1,363		92.2	%		93.8	%		1.7	%		(0.2	%)		4.5	%		(2.3	%)
The Greens at Columbia		168				7/29/2010		1,481		94.1	%		96.6	%		1.2	%		(0.5	%)		9.0	%		(4.2	%)
Top Field		156				10/4/2006		1,378		97.4	%		94.3	%		2.6	%		6.7	%		7.3	%		6.4	%
Village Square		370				7/15/1999		1,252		95.3	%		94.3	%		1.9	%		3.8	%		(4.4	%)		8.3	%
Westbrooke		110				4/1/2010		941		96.5	%		96.3	%		4.1	%		3.1	%		1.2	%		4.4	%
Total Baltimore		10,477		25.0	%		$	1,183		94.5	%		94.7	%		2.8	%		2.6	%		4.5	%		1.8	%		23.3	%
Boston
Gardencrest		696				6/28/2002	$	1,787		95.3	%		97.3	%		4.8	%		1.6	%		(0.4	%)		2.4	%
Highland House		172				5/31/2006		1,350		95.8	%		94.3	%		4.4	%		4.1	%		(4.6	%)		10.7	%
Liberty Commons		120				8/30/2006		1,333		98.4	%		96.8	%		2.0	%		4.3	%		3.6	%		4.7	%
Liberty Place		107				6/6/2006		1,608		95.0	%		95.4	%		4.1	%		0.3	%		(4.2	%)		3.5	%
Middlesex Crossing		252				12/18/2013		1,442		96.3	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		1,036		97.4	%		97.4	%		8.0	%		9.1	%		(2.3	%)		16.5	%
Stone Ends		280				2/12/2003		1,418		97.4	%		96.0	%		4.3	%		3.7	%		5.6	%		2.8	%
The Commons at Haynes Farm		302				7/15/2011		1,418		97.2	%		97.1	%		5.0	%		4.4	%		1.0	%		6.3	%
The Heights at Marlborough		348				9/7/2006		1,370		96.5	%		95.9	%		4.6	%		2.9	%		10.0	%		(0.8	%)
The Meadows at Marlborough		264				9/7/2006		1,320		96.5	%		96.5	%		3.9	%		2.3	%		7.8	%		(0.7	%)
The Townhomes of Beverly		204				2/15/2007		1,703		97.1	%		96.4	%		5.5	%		5.2	%		1.7	%		7.0	%
The Village at Marshfield		276				3/17/2004		1,315		96.1	%		96.1	%		4.4	%		4.5	%		3.3	%		5.1	%
Westwoods		35				4/30/2007		1,429		97.7	%		96.4	%		3.2	%		8.6	%		(13.8	%)		24.3	%
Total Boston		3,556		8.5	%		$	1,434		96.5	%		96.6	%		4.9	%		3.7	%		1.7	%		4.8	%		9.4	%

Page 10

Property Results
Second Quarter 2014															2Q '14 Versus 2Q '13
			2Q '14												% Growth												2Q '14
	# of		Company			Date	2Q '14		2Q '14			2Q '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Chicago
Blackhawk		371				10/20/2000	$	952		95.6	%		95.8	%		3.6	%		3.1	%		(0.1	%)		6.3	%
Courtyards Village		224				8/29/2001		967		98.0	%		98.0	%		4.0	%		4.3	%		(6.6	%)		15.0	%
Cypress Place		192				12/27/2000		1,115		98.0	%		98.5	%		5.5	%		4.9	%		5.6	%		4.5	%
Lakeview Townhomes		120				10/18/2010		1,277		97.8	%		97.8	%		2.7	%		4.3	%		6.5	%		2.5	%
The Colony		783				9/1/1999		965		98.0	%		97.0	%		4.2	%		6.6	%		0.0	%		11.5	%
The Gates of Deer Grove		204				12/15/2011		1,105		97.0	%		96.9	%		3.5	%		2.1	%		5.8	%		(0.6	%)
The New Colonies		672				6/23/1998		777		97.4	%		96.6	%		0.6	%		5.5	%		(19.2	%)		42.4	%
Total Chicago		2,566		6.1	%		$	951		97.4	%		96.9	%		3.3	%		4.9	%		(4.5	%)		13.6	%		4.1	%
Florida
The Hamptons		668				7/7/2004	$	1,114		95.0	%		94.8	%		6.1	%		6.8	%		4.8	%		8.5	%
Vinings at Hampton Village		168				7/7/2004		1,240		97.8	%		98.2	%		6.0	%		6.2	%		2.2	%		9.3	%
Total Florida		836		2.0	%		$	1,139		95.6	%		95.5	%		6.1	%		6.6	%		4.3	%		8.7	%		1.5	%
Long Island
Bayview / Colonial		160				11/1/2000	$	1,398		98.3	%		98.4	%		3.0	%		3.1	%		5.6	%		1.4	%
Cambridge Village		82				3/1/2002		2,009		97.0	%		99.1	%		4.5	%		1.9	%		5.6	%		(0.4	%)
Crescent Club		257				9/30/2010		1,493		95.5	%		97.4	%		7.4	%		5.7	%		10.2	%		3.1	%
Devonshire Hills		656				7/16/2001		1,721		97.1	%		97.1	%		3.1	%		3.9	%		1.4	%		5.2	%
Hawthorne Court		434				4/4/2002		1,574		98.1	%		97.5	%		4.1	%		3.7	%		0.6	%		6.1	%
Heritage Square		80				4/4/2002		1,940		98.3	%		98.7	%		3.3	%		4.0	%		3.4	%		4.5	%
Holiday Square		144				5/31/2002		1,358		97.6	%		98.6	%		3.2	%		1.9	%		3.0	%		1.1	%
Lake Grove		368				2/3/1997		1,585		96.9	%		97.0	%		3.4	%		3.0	%		8.9	%		(0.3	%)
Mid-Island Estates		232				7/1/1997		1,530		99.2	%		98.0	%		2.3	%		3.9	%		8.4	%		1.1	%
Sayville Commons		342				7/15/2005		1,750		98.2	%		96.5	%		4.0	%		5.1	%		1.4	%		8.1	%
Southern Meadows		452				6/29/2001		1,577		96.8	%		96.3	%		3.5	%		6.2	%		5.6	%		6.6	%
Westwood Village		242				3/1/2002		2,598		97.8	%		94.7	%		1.4	%		3.6	%		1.7	%		4.9	%
Woodmont Village		97				3/1/2002		1,452		97.6	%		97.1	%		3.1	%		5.0	%		(9.7	%)		14.3	%
Yorkshire Village		40				3/1/2002		1,975		98.8	%		97.1	%		(1.6	%)		(2.7	%)		(7.9	%)		1.9	%
Total Long Island		3,586		8.5	%		$	1,682		97.5	%		97.1	%		3.4	%		4.0	%		3.4	%		4.5	%		10.5	%

Page 11

Property Results
Second Quarter 2014															2Q '14 Versus 2Q '13
			2Q '14												% Growth												2Q '14
	# of		Company			Date	2Q '14		2Q '14			2Q '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
New Jersey
Barrington Gardens		148				3/1/2005	$	1,449		96.5	%		97.5	%		6.0	%		5.2	%		4.1	%		5.8	%
Chatham Hill		308				1/30/2004		2,019		93.1	%		96.1	%		2.2	%		1.5	%		2.5	%		1.1	%
East Hill Gardens		33				7/8/1998		1,698		95.6	%		98.9	%		4.3	%		3.4	%		(2.6	%)		6.5	%
Hackensack Gardens		198				3/1/2005		1,272		97.2	%		95.8	%		4.1	%		5.5	%		4.4	%		6.2	%
Jacob Ford Village		270				2/15/2007		1,464		97.8	%		97.9	%		3.7	%		5.0	%		4.0	%		5.4	%
Lakeview		106				7/8/1998		1,502		97.3	%		97.3	%		1.7	%		3.1	%		0.5	%		4.8	%
Northwood		134				1/30/2004		1,484		98.2	%		96.6	%		3.3	%		6.2	%		17.0	%		0.7	%
Oak Manor		77				7/8/1998		2,111		98.2	%		98.2	%		5.1	%		6.2	%		17.1	%		1.9	%
Pleasant View		1,142				7/8/1998		1,264		96.4	%		96.0	%		3.5	%		2.6	%		2.6	%		2.6	%
Pleasure Bay		270				7/8/1998		1,204		95.7	%		97.2	%		4.8	%		2.7	%		5.6	%		0.6	%
Royal Gardens		550				5/28/1997		1,363		97.4	%		96.6	%		3.0	%		4.2	%		4.1	%		4.2	%
Wayne Village		275				7/8/1998		1,521		95.0	%		97.9	%		2.5	%		0.1	%		7.0	%		(3.3	%)
Windsor Realty		67				7/8/1998		1,386		96.1	%		98.3	%		3.3	%		0.0	%		(0.5	%)		0.4	%
Total New Jersey		3,578		8.5	%		$	1,422		96.4	%		96.7	%		3.4	%		3.2	%		4.4	%		2.6	%		9.6	%
Philadelphia
Glen Manor		180				9/23/1997		839		94.1	%		97.2	%		4.1	%		3.5	%		(1.7	%)		9.0	%
Golf Club		399				3/15/2000		1,220		95.3	%		95.8	%		4.0	%		2.2	%		(0.4	%)		3.5	%
Hill Brook Place		274				7/28/1999		969		95.6	%		96.5	%		1.3	%		(0.2	%)		7.5	%		(6.0	%)
Home Properties of Bryn Mawr		316				3/15/2000		1,649		88.1	%		90.6	%		7.3	%		1.5	%		3.1	%		0.7	%
Home Properties of Devon		631				3/15/2000		1,319		95.6	%		94.0	%		1.4	%		3.0	%		0.5	%		4.1	%
New Orleans Park		442				7/28/1999		947		94.7	%		95.1	%		3.8	%		1.3	%		(2.6	%)		5.0	%
Racquet Club East		466				7/7/1998		1,166		95.3	%		95.6	%		2.2	%		0.4	%		(2.4	%)		2.0	%
Racquet Club South		103				5/27/1999		967		94.5	%		95.5	%		1.2	%		(1.1	%)		(1.4	%)		(0.8	%)
Ridley Brook		244				7/28/1999		1,005		94.4	%		95.8	%		1.5	%		(0.6	%)		3.1	%		(3.8	%)
Sherry Lake		298				7/23/1998		1,329		98.3	%		97.6	%		0.6	%		2.6	%		10.0	%		(0.7	%)
Stone Hill		205				11/27/2013		932		91.0	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,272		95.5	%		98.1	%		2.6	%		1.7	%		1.1	%		2.0	%
The Landings		384				11/22/1996		1,109		95.4	%		96.7	%		(0.9	%)		(2.2	%)		8.2	%		(8.6	%)
The Preserve at Milltown		376				6/19/2014		1,103		94.7	%		n/a			n/a			n/a			n/a			n/a
Trexler Park		250				3/15/2000		1,161		95.2	%		96.7	%		1.0	%		(1.4	%)		9.3	%		(7.4	%)
Trexler Park West		216				8/15/2008		1,382		98.1	%		97.0	%		(0.5	%)		1.7	%		(6.1	%)		5.8	%
Waterview		203				7/14/2011		1,144		95.9	%		94.5	%		4.9	%		3.4	%		(21.5	%)		18.1	%
William Henry		363				3/15/2000		1,239		95.1	%		96.2	%		1.2	%		(0.3	%)		(0.7	%)		(0.0	%)
Total Philadelphia		5,496		13.1	%		$	1,189		95.0	%		95.6	%		2.2	%		1.1	%		0.7	%		1.3	%		11.2	%

Page 12

Property Results
Second Quarter 2014															2Q '14 Versus 2Q '13
			2Q '14												% Growth												2Q '14
	# of		Company			Date	2Q '14		2Q '14			2Q '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Washington, D.C.
1200 East West		247				5/11/2010	$	1,848		93.4	%		96.4	%		(2.8	%)		(2.9	%)		61.0	%		(18.7	%)
Arbor Park of Alexandria		851				Redevelopment		1,629		77.7	%		81.1	%		4.8	%		(0.1	%)		(0.7	%)		0.3	%
Braddock Lee		255				3/13/1998		1,461		97.0	%		97.3	%		2.0	%		0.7	%		(4.2	%)		3.8	%
Cinnamon Run		511				12/28/2005		1,342		92.3	%		94.1	%		3.3	%		1.0	%		(9.8	%)		6.2	%
Courts at Huntington Station		421				6/15/2011		1,969		93.3	%		93.9	%		(0.9	%)		(0.1	%)		(9.0	%)		4.6	%
East Meadow		150				8/1/2000		1,491		96.2	%		97.1	%		1.9	%		2.8	%		3.4	%		2.5	%
Eleven55 Ripley		351				Under Construction		2,045		20.5	%		n/a			n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,034		94.7	%		95.9	%		3.8	%		1.6	%		1.9	%		1.4	%
Hunters Glen		108				4/19/2011		1,058		95.4	%		94.5	%		4.1	%		3.8	%		(4.1	%)		9.1	%
Mount Vernon Square		1,387				12/27/2006		1,365		93.4	%		95.2	%		1.7	%		0.2	%		(3.6	%)		2.3	%
Newport Village		937				10/17/2011		1,579		94.3	%		95.6	%		1.3	%		(1.0	%)		0.8	%		(2.1	%)
Park Shirlington		294				3/13/1998		1,469		95.7	%		97.1	%		2.2	%		0.7	%		2.5	%		(0.4	%)
Peppertree Farm		879				12/28/2005		1,319		91.8	%		94.3	%		3.6	%		0.9	%		3.8	%		(0.6	%)
Seminary Hill		296				7/1/1999		1,465		97.2	%		96.8	%		3.0	%		5.3	%		2.7	%		7.3	%
Seminary Towers		545				7/1/1999		1,485		96.5	%		97.1	%		0.5	%		(1.5	%)		(7.3	%)		2.4	%
Somerset Park		108				10/11/2011		1,523		98.2	%		98.1	%		1.5	%		3.0	%		3.4	%		2.8	%
Tamarron		132				7/15/1999		1,674		96.3	%		93.2	%		0.5	%		5.3	%		(0.9	%)		7.7	%
The Apts. at Cobblestone Square		314				6/14/2012		1,348		95.5	%		96.0	%		2.7	%		3.4	%		4.1	%		3.0	%
The Apts. at Wellington Trace		240				3/2/2004		1,426		95.8	%		95.6	%		(0.1	%)		0.3	%		7.5	%		(2.9	%)
The Courts at Dulles		411				11/30/2011		1,542		96.1	%		95.3	%		(0.4	%)		(0.8	%)		3.8	%		(3.2	%)
The Courts at Fair Oaks		364				9/30/2010		1,545		96.1	%		96.1	%		0.2	%		(1.4	%)		2.1	%		(2.9	%)
The Manor - MD		435				8/31/2001		1,396		94.7	%		95.4	%		2.5	%		3.2	%		3.7	%		3.0	%
The Manor - VA		198				2/19/1999		1,202		95.3	%		97.6	%		5.1	%		3.5	%		(1.1	%)		6.1	%
The Manor East		164				5/11/2012		1,167		94.0	%		95.1	%		6.0	%		4.0	%		(9.8	%)		12.9	%
The Sycamores		185				12/16/2002		1,475		97.7	%		95.6	%		(1.7	%)		(0.1	%)		(1.8	%)		0.8	%
Village at Potomac Falls		247				8/5/2010		1,464		96.1	%		95.9	%		0.9	%		3.0	%		0.7	%		4.4	%
West Springfield		244				11/18/2002		1,584		96.1	%		97.5	%		(0.4	%)		(2.2	%)		(15.3	%)		4.7	%
Westchester West		345				12/30/2008		1,426		93.2	%		94.0	%		3.0	%		2.1	%		11.1	%		(2.5	%)
Woodleaf		228				3/19/2004		1,307		96.5	%		96.9	%		1.4	%		1.3	%		11.2	%		(2.6	%)
Woodway at Trinity Centre		504				5/17/2012		1,436		96.4	%		96.8	%		1.6	%		2.0	%		7.5	%		(0.4	%)
Total Washington, D.C.		11,855		28.3	%		$	1,439		94.7	%		95.7	%		1.5	%		0.7	%		0.8	%		0.7	%		30.4	%
Total Properties		41,950		100.0	%		$	1,334		94.4	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		39,915					$	1,323		95.4	%		95.8	%		2.8	%		2.4	%		2.0	%		2.6	%

(1) Represents the percentage of the Company's total Units/NOI attributed to each region, including Core and Non-Core Properties.

(2) For development properties the date reflects when all units became available to rent.

(3) Average physical occupancy is defined as the number of occupied apartment units divided by total apartment units.

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

Page 13

Property Results
June YTD															YTD '14 Versus YTD '13
			YTD '14												% Growth												YTD '14
	# of		Company			Date	YTD '14		YTD '14			YTD '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Baltimore
Annapolis Roads		282				6/17/2010	$	1,314		94.7	%		93.3	%		0.9	%		2.8	%		16.1	%		(3.7	%)
Bonnie Ridge		960				7/1/1999		1,181		94.5	%		94.0	%		2.0	%		1.8	%		5.1	%		0.3	%
Canterbury		618				7/15/1999		1,074		94.7	%		95.0	%		3.6	%		4.1	%		7.4	%		2.4	%
Charleston Place		858				9/30/2010		1,262		95.4	%		95.6	%		3.4	%		3.3	%		8.7	%		1.1	%
Country Village		344				4/30/1998		1,038		95.4	%		94.1	%		(0.7	%)		0.7	%		6.3	%		(2.6	%)
Dunfield		312				11/1/2007		1,266		92.7	%		95.1	%		1.9	%		(1.5	%)		14.8	%		(8.5	%)
Fox Hall		720				3/28/2007		958		93.3	%		92.9	%		4.2	%		1.9	%		5.8	%		(1.0	%)
Gateway Village		132				7/15/1999		1,448		97.3	%		96.2	%		2.9	%		4.3	%		5.8	%		3.6	%
Heritage Woods		164				10/4/2006		1,192		97.2	%		94.6	%		0.4	%		3.0	%		14.0	%		(2.4	%)
Howard Crossing		1,350				6/28/2012		1,158		93.8	%		94.6	%		3.2	%		4.4	%		6.8	%		3.1	%
Middlebrooke		208				4/1/2010		1,046		96.4	%		95.8	%		4.4	%		6.5	%		7.9	%		5.7	%
Mill Towne Village		384				5/31/2001		969		96.2	%		96.6	%		2.0	%		3.0	%		13.6	%		(2.7	%)
Morningside Heights		1,050				4/30/1998		1,003		93.3	%		94.1	%		4.4	%		3.6	%		15.9	%		(1.8	%)
Owings Run		504				7/15/1999		1,336		94.4	%		95.5	%		3.0	%		2.4	%		6.6	%		0.7	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,273		93.7	%		96.8	%		2.8	%		2.7	%		10.1	%		(1.3	%)
Saddle Brooke		468				10/29/2008		1,192		96.1	%		94.0	%		4.9	%		7.2	%		8.9	%		6.3	%
Selford		102				7/15/1999		1,509		97.2	%		95.4	%		3.2	%		5.0	%		6.2	%		4.5	%
The Apts. at Cambridge Court		544				8/23/2011		1,363		93.4	%		92.1	%		(0.1	%)		2.0	%		1.9	%		2.1	%
The Coves at Chesapeake		469				11/20/2006		1,360		92.0	%		94.1	%		2.1	%		(1.6	%)		8.3	%		(5.6	%)
The Greens at Columbia		168				7/29/2010		1,482		94.9	%		95.9	%		1.7	%		1.4	%		10.8	%		(2.2	%)
Top Field		156				10/4/2006		1,376		95.8	%		95.4	%		2.7	%		3.4	%		9.7	%		0.8	%
Village Square		370				7/15/1999		1,249		94.4	%		94.9	%		2.3	%		2.0	%		3.9	%		1.0	%
Westbrooke		110				4/1/2010		936		96.4	%		96.7	%		3.9	%		4.0	%		3.5	%		4.4	%
Total Baltimore		10,477		25.0	%		$	1,178		94.4	%		94.5	%		2.7	%		2.8	%		8.2	%		0.2	%		23.6	%
Boston
Gardencrest		696				6/28/2002	$	1,778		95.5	%		96.8	%		5.2	%		3.2	%		1.1	%		4.2	%
Highland House		172				5/31/2006		1,344		93.4	%		94.6	%		4.1	%		0.5	%		(1.4	%)		2.1	%
Liberty Commons		120				8/30/2006		1,331		96.8	%		96.2	%		2.0	%		1.8	%		10.0	%		(1.9	%)
Liberty Place		107				6/6/2006		1,591		95.7	%		95.1	%		3.7	%		0.4	%		(3.9	%)		3.6	%
Middlesex Crossing		252				12/18/2013		1,427		96.1	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		1,022		97.3	%		96.5	%		6.9	%		8.6	%		(1.1	%)		14.9	%
Stone Ends		280				2/12/2003		1,410		96.8	%		96.5	%		4.8	%		2.5	%		6.8	%		0.2	%
The Commons at Haynes Farm		302				7/15/2011		1,409		97.4	%		97.4	%		5.2	%		4.3	%		(0.9	%)		7.3	%
The Heights at Marlborough		348				9/7/2006		1,361		96.8	%		95.6	%		4.8	%		4.4	%		10.0	%		1.0	%
The Meadows at Marlborough		264				9/7/2006		1,314		95.9	%		96.7	%		4.6	%		3.6	%		8.4	%		0.6	%
The Townhomes of Beverly		204				2/15/2007		1,693		95.6	%		96.9	%		5.5	%		3.3	%		6.5	%		1.6	%
The Village at Marshfield		276				3/17/2004		1,306		95.5	%		96.4	%		4.8	%		2.7	%		4.4	%		1.7	%
Westwoods		35				4/30/2007		1,423		97.2	%		97.7	%		3.1	%		3.8	%		9.7	%		(0.3	%)
Total Boston		3,556		8.5	%		$	1,424		96.2	%		96.4	%		5.0	%		3.7	%		3.3	%		3.9	%		9.1	%

Page 14

Property Results
June YTD															YTD '14 Versus YTD '13
			YTD '14												% Growth												YTD '14
	# of		Company			Date	YTD '14		YTD '14			YTD '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Chicago
Blackhawk		371				10/20/2000	$	945		95.1	%		95.8	%		3.5	%		2.4	%		5.1	%		(0.1	%)
Courtyards Village		224				8/29/2001		963		97.4	%		98.0	%		4.5	%		4.4	%		5.1	%		3.8	%
Cypress Place		192				12/27/2000		1,110		96.9	%		98.3	%		5.8	%		5.1	%		11.4	%		0.9	%
Lakeview Townhomes		120				10/18/2010		1,273		97.4	%		97.0	%		2.6	%		4.7	%		17.8	%		(5.2	%)
The Colony		783				9/1/1999		958		97.0	%		96.9	%		4.3	%		5.5	%		5.8	%		5.2	%
The Gates of Deer Grove		204				12/15/2011		1,094		96.7	%		96.5	%		3.9	%		3.3	%		7.7	%		(0.5	%)
The New Colonies		672				6/23/1998		773		97.2	%		96.6	%		0.4	%		4.4	%		(5.0	%)		14.9	%
Total Chicago		2,566		6.1	%		$	945		96.8	%		96.8	%		3.3	%		4.4	%		4.2	%		4.5	%		4.0	%
Florida
The Hamptons		668				7/7/2004	$	1,104		95.9	%		94.5	%		6.0	%		8.2	%		7.1	%		9.2	%
Vinings at Hampton Village		168				7/7/2004		1,232		96.6	%		97.5	%		5.8	%		5.3	%		2.9	%		7.2	%
Total Florida		836		2.0	%		$	1,130		96.0	%		95.1	%		6.0	%		7.6	%		6.2	%		8.7	%		1.5	%
Long Island
Bayview / Colonial		160				11/1/2000	$	1,396		97.8	%		98.6	%		3.4	%		4.7	%		7.2	%		2.9	%
Cambridge Village		82				3/1/2002		1,995		97.0	%		98.7	%		3.8	%		2.9	%		6.5	%		0.5	%
Crescent Club		257				9/30/2010		1,482		96.1	%		96.7	%		7.0	%		7.6	%		7.6	%		7.6	%
Devonshire Hills		656				7/16/2001		1,712		96.7	%		96.6	%		2.9	%		4.2	%		2.4	%		5.2	%
Hawthorne Court		434				4/4/2002		1,568		97.2	%		97.5	%		4.2	%		5.0	%		3.1	%		6.6	%
Heritage Square		80				4/4/2002		1,937		97.9	%		99.1	%		3.4	%		3.5	%		14.7	%		(3.5	%)
Holiday Square		144				5/31/2002		1,351		97.7	%		99.1	%		3.2	%		1.0	%		9.5	%		(4.8	%)
Lake Grove		368				2/3/1997		1,580		95.5	%		96.9	%		3.2	%		2.0	%		10.3	%		(2.9	%)
Mid-Island Estates		232				7/1/1997		1,524		98.3	%		97.5	%		2.1	%		3.7	%		7.0	%		1.6	%
Sayville Commons		342				7/15/2005		1,741		97.5	%		97.1	%		3.9	%		3.6	%		0.0	%		6.6	%
Southern Meadows		452				6/29/2001		1,568		96.1	%		96.2	%		3.5	%		5.2	%		6.9	%		4.0	%
Westwood Village		242				3/1/2002		2,582		97.3	%		95.0	%		1.0	%		2.8	%		4.9	%		1.4	%
Woodmont Village		97				3/1/2002		1,447		97.6	%		96.6	%		3.4	%		7.3	%		7.1	%		7.5	%
Yorkshire Village		40				3/1/2002		1,976		97.3	%		97.3	%		(1.1	%)		(5.1	%)		(7.0	%)		(3.4	%)
Total Long Island		3,586		8.5	%		$	1,674		96.9	%		97.0	%		3.3	%		4.0	%		5.1	%		3.2	%		10.6	%

Page 15

Property Results
June YTD															YTD '14 Versus YTD '13
			YTD '14												% Growth												YTD '14
	# of		Company			Date	YTD '14		YTD '14			YTD '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
New Jersey
Barrington Gardens		148				3/1/2005	$	1,435		96.9	%		97.8	%		5.5	%		5.2	%		15.1	%		(0.1	%)
Chatham Hill		308				1/30/2004		2,026		92.2	%		94.7	%		2.8	%		2.5	%		8.0	%		0.2	%
East Hill Gardens		33				7/8/1998		1,681		96.8	%		99.5	%		4.1	%		2.0	%		10.3	%		(2.5	%)
Hackensack Gardens		198				3/1/2005		1,262		97.8	%		96.3	%		4.0	%		6.4	%		6.7	%		6.2	%
Jacob Ford Village		270				2/15/2007		1,459		96.9	%		97.6	%		4.1	%		4.8	%		8.4	%		3.2	%
Lakeview		106				7/8/1998		1,499		97.4	%		97.6	%		2.2	%		2.4	%		5.9	%		0.0	%
Northwood		134				1/30/2004		1,478		97.6	%		96.2	%		3.3	%		5.7	%		3.6	%		7.1	%
Oak Manor		77				7/8/1998		2,097		96.5	%		97.7	%		5.5	%		4.6	%		21.3	%		(2.9	%)
Pleasant View		1,142				7/8/1998		1,257		96.2	%		96.2	%		3.4	%		2.6	%		5.7	%		0.6	%
Pleasure Bay		270				7/8/1998		1,191		95.7	%		95.7	%		5.4	%		3.9	%		8.7	%		0.3	%
Royal Gardens		550				5/28/1997		1,356		97.4	%		95.8	%		2.9	%		5.3	%		6.8	%		4.4	%
Wayne Village		275				7/8/1998		1,518		95.3	%		97.5	%		2.8	%		0.6	%		8.1	%		(3.2	%)
Windsor Realty		67				7/8/1998		1,382		96.4	%		98.1	%		3.4	%		1.0	%		4.6	%		(1.8	%)
Total New Jersey		3,578		8.5	%		$	1,416		96.2	%		96.4	%		3.5	%		3.5	%		7.5	%		1.2	%		9.2	%
Philadelphia
Glen Manor		180				9/23/1997		824		93.9	%		96.4	%		2.5	%		(0.7	%)		2.7	%		(4.4	%)
Golf Club		399				3/15/2000		1,214		95.8	%		95.5	%		4.1	%		4.0	%		4.3	%		3.9	%
Hill Brook Place		274				7/28/1999		965		95.1	%		95.4	%		1.2	%		0.2	%		6.1	%		(4.8	%)
Home Properties of Bryn Mawr		316				3/15/2000		1,607		91.9	%		94.1	%		6.5	%		2.7	%		3.2	%		2.4	%
Home Properties of Devon		631				3/15/2000		1,310		95.3	%		95.3	%		1.8	%		2.4	%		6.3	%		0.5	%
New Orleans Park		442				7/28/1999		941		94.8	%		94.1	%		3.1	%		4.7	%		2.3	%		7.2	%
Racquet Club East		466				7/7/1998		1,161		93.2	%		95.5	%		2.2	%		(0.6	%)		1.4	%		(1.9	%)
Racquet Club South		103				5/27/1999		965		92.0	%		94.7	%		1.1	%		(2.6	%)		4.3	%		(9.4	%)
Ridley Brook		244				7/28/1999		999		94.7	%		95.4	%		1.2	%		0.2	%		4.9	%		(4.0	%)
Sherry Lake		298				7/23/1998		1,328		97.1	%		96.7	%		0.7	%		2.5	%		9.6	%		(0.9	%)
Stone Hill		205				11/27/2013		929		90.3	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,268		96.2	%		98.2	%		2.9	%		1.8	%		9.4	%		(2.5	%)
The Landings		384				11/22/1996		1,107		95.9	%		96.7	%		(0.6	%)		0.3	%		13.9	%		(8.7	%)
The Preserve at Milltown		376				6/19/2014		1,103		94.7	%		n/a			n/a			n/a			n/a			n/a
Trexler Park		250				3/15/2000		1,154		96.1	%		96.2	%		0.9	%		2.6	%		14.5	%		(4.5	%)
Trexler Park West		216				8/15/2008		1,374		97.7	%		97.5	%		(0.8	%)		(0.9	%)		(0.2	%)		(1.3	%)
Waterview		203				7/14/2011		1,135		96.1	%		94.6	%		4.7	%		5.5	%		1.9	%		7.8	%
William Henry		363				3/15/2000		1,235		94.5	%		95.5	%		1.6	%		0.7	%		5.5	%		(2.2	%)
Total Philadelphia		5,496		13.1	%		$	1,180		95.0	%		95.6	%		2.2	%		1.7	%		5.6	%		(0.6	%)		11.2	%

Page 16

Property Results
June YTD															YTD '14 Versus YTD '13
			YTD '14												% Growth												YTD '14
	# of		Company			Date	YTD '14		YTD '14			YTD '13			Rental			Total			Total			Total			Company
Region	Units		% Units (1)			Acquired (2)	Rent/Mo		Occup(3)			Occup(3)			Rates(4)			Revenue			Expense			NOI			% NOI (1)
Washington, D.C.
1200 East West		247				5/11/2010	$	1,853		93.1	%		96.6	%		(2.2	%)		(3.0	%)		4.6	%		(6.3	%)
Arbor Park of Alexandria		851				Redevelopment		1,622		79.3	%		78.1	%		5.2	%		4.3	%		2.7	%		5.2	%
Braddock Lee		255				3/13/1998		1,457		97.0	%		97.1	%		1.7	%		2.0	%		0.6	%		2.8	%
Cinnamon Run		511				12/28/2005		1,333		92.2	%		93.3	%		3.0	%		2.7	%		(11.0	%)		9.4	%
Courts at Huntington Station		421				6/15/2011		1,971		93.3	%		95.0	%		(0.7	%)		(1.0	%)		(3.1	%)		0.0	%
East Meadow		150				8/1/2000		1,486		96.0	%		96.8	%		1.8	%		4.1	%		4.1	%		4.1	%
Eleven55 Ripley		351				Under Construction		2,062		16.1	%		n/a			n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,027		95.3	%		95.7	%		3.4	%		1.5	%		1.2	%		1.8	%
Hunters Glen		108				4/19/2011		1,049		94.6	%		94.1	%		3.5	%		5.8	%		0.3	%		9.5	%
Mount Vernon Square		1,387				12/27/2006		1,361		93.1	%		95.0	%		2.1	%		0.5	%		5.9	%		(2.3	%)
Newport Village		937				10/17/2011		1,576		93.0	%		95.9	%		1.3	%		(1.9	%)		6.6	%		(6.5	%)
Park Shirlington		294				3/13/1998		1,469		95.1	%		96.1	%		2.6	%		1.9	%		4.4	%		0.4	%
Peppertree Farm		879				12/28/2005		1,312		92.6	%		93.3	%		3.4	%		3.0	%		7.0	%		0.7	%
Seminary Hill		296				7/1/1999		1,460		97.3	%		96.7	%		3.2	%		5.4	%		3.9	%		6.5	%
Seminary Towers		545				7/1/1999		1,485		95.4	%		96.9	%		0.9	%		0.1	%		(0.3	%)		0.3	%
Somerset Park		108				10/11/2011		1,526		98.0	%		97.9	%		1.5	%		3.5	%		4.6	%		3.0	%
Tamarron		132				7/15/1999		1,661		96.3	%		94.1	%		0.3	%		3.3	%		3.4	%		3.2	%
The Apts. at Cobblestone Square		314				6/14/2012		1,339		95.8	%		95.4	%		2.5	%		4.5	%		8.4	%		2.2	%
The Apts. at Wellington Trace		240				3/2/2004		1,421		96.4	%		95.9	%		(0.0	%)		0.0	%		9.5	%		(4.0	%)
The Courts at Dulles		411				11/30/2011		1,538		95.9	%		95.8	%		(0.6	%)		(0.7	%)		5.7	%		(4.0	%)
The Courts at Fair Oaks		364				9/30/2010		1,543		94.9	%		96.8	%		0.4	%		(2.2	%)		5.4	%		(5.4	%)
The Manor - MD		435				8/31/2001		1,389		94.6	%		95.8	%		2.9	%		1.6	%		8.0	%		(1.6	%)
The Manor - VA		198				2/19/1999		1,194		95.0	%		95.8	%		5.2	%		6.8	%		4.7	%		8.0	%
The Manor East		164				5/11/2012		1,159		92.9	%		93.2	%		5.2	%		5.6	%		(5.5	%)		13.2	%
The Sycamores		185				12/16/2002		1,471		96.6	%		95.8	%		(1.2	%)		(1.0	%)		4.6	%		(4.1	%)
Village at Potomac Falls		247				8/5/2010		1,462		95.2	%		96.6	%		1.6	%		1.1	%		5.7	%		(1.4	%)
West Springfield		244				11/18/2002		1,579		96.0	%		96.8	%		(0.3	%)		(1.9	%)		(0.2	%)		(2.7	%)
Westchester West		345				12/30/2008		1,419		92.7	%		93.0	%		3.2	%		3.5	%		7.6	%		1.2	%
Woodleaf		228				3/19/2004		1,303		96.9	%		97.0	%		1.3	%		2.5	%		11.8	%		(1.2	%)
Woodway at Trinity Centre		504				5/17/2012		1,431		95.7	%		96.2	%		1.6	%		2.1	%		4.9	%		0.8	%
Total Washington, D.C.		11,855		28.3	%		$	1,434		94.4	%		95.5	%		1.6	%		1.0	%		3.9	%		(0.5	%)		30.8	%
Total Properties		41,950		100.0	%		$	1,327		94.3	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		39,915					$	1,317		95.2	%		95.6	%		2.8	%		2.6	%		5.5	%		0.9	%

(1) Represents the percentage of the Company's total Units/NOI attributed to each region, including Core and Non-Core Properties.

(2) For development properties the date reflects when all units became available to rent.

(3) Average physical occupancy is defined as the number of occupied apartment units divided by total apartment units.

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

Page 17

Physical Occupancy Comparison by Region - Core Properties
Sequential Comparison
Second Quarter 2014 vs. First Quarter 2014
Region	% Units			2Q '14			1Q '14			Variance
Baltimore		26.2	%		94.5	%		94.3	%		0.2	%
Boston		8.3	%		96.5	%		95.9	%		0.6	%
Chicago		6.4	%		97.4	%		96.2	%		1.2	%
Florida		2.2	%		95.6	%		96.5	%		(0.9	%)
Long Island, New Jersey		17.9	%		96.9	%		96.2	%		0.7	%
Philadelphia		12.3	%		95.0	%		95.0	%		0.0	%
Washington, D.C.		26.7	%		94.7	%		94.1	%		0.6	%
Total Core		100.0	%		95.4	%		95.0	%		0.4	%
Year over Year Comparison
Second Quarter 2014 vs. Second Quarter 2013
Region	% Units			2Q '14			2Q'13			Variance
Baltimore		26.2	%		94.5	%		94.7	%		(0.2	%)
Boston		8.3	%		96.5	%		96.6	%		(0.1	%)
Chicago		6.4	%		97.4	%		96.9	%		0.5	%
Florida		2.2	%		95.6	%		95.5	%		0.1	%
Long Island, New Jersey		17.9	%		96.9	%		96.9	%		0.0	%
Philadelphia		12.3	%		95.0	%		95.6	%		(0.6	%)
Washington, D.C.		26.7	%		94.7	%		95.7	%		(1.0	%)
Total Core		100.0	%		95.4	%		95.8	%		(0.4	%)
June vs. Quarter Comparison
Region	% Units			Jun '14			2Q '14			Variance
Baltimore		26.2	%		94.3	%		94.5	%		(0.2	%)
Boston		8.3	%		96.4	%		96.5	%		(0.1	%)
Chicago		6.4	%		97.7	%		97.4	%		0.3	%
Florida		2.2	%		95.9	%		95.6	%		0.3	%
Long Island, New Jersey		17.9	%		97.3	%		96.9	%		0.4	%
Philadelphia		12.3	%		94.6	%		95.0	%		(0.4	%)
Washington, D.C.		26.7	%		95.0	%		94.7	%		0.3	%
Total Core		100.0	%		95.5	%		95.4	%		0.1	%

Page 18

 

Operating Results by Region - Core Properties
Sequential Results
Second Quarter 2014 vs. First Quarter 2014
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		1.0	%		(0.3	%)		(8.1	%)		4.1	%
Boston		8.3	%		2.0	%		2.1	%		(12.5	%)		11.3	%
Chicago		6.4	%		2.5	%		1.3	%		(9.3	%)		11.4	%
Florida		2.2	%		0.8	%		0.2	%		(4.7	%)		4.7	%
Long Island, New Jersey		17.9	%		2.0	%		0.1	%		(12.5	%)		9.4	%
Philadelphia		12.3	%		0.7	%		(2.4	%)		(14.3	%)		6.1	%
Washington, D.C.		26.7	%		1.5	%		(0.2	%)		(6.3	%)		3.4	%
Total Core		100.0	%		1.5	%		(0.1	%)		(9.7	%)		6.1	%
Year over Year Results
Second Quarter 2014 vs. Second Quarter 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		2.4	%		2.6	%		4.5	%		1.8	%
Boston		8.3	%		4.4	%		3.7	%		1.7	%		4.8	%
Chicago		6.4	%		4.4	%		4.9	%		(4.5	%)		13.6	%
Florida		2.2	%		5.8	%		6.6	%		4.3	%		8.7	%
Long Island, New Jersey		17.9	%		3.6	%		3.6	%		3.8	%		3.5	%
Philadelphia		12.3	%		1.6	%		1.1	%		0.7	%		1.3	%
Washington, D.C.		26.7	%		0.8	%		0.7	%		0.8	%		0.7	%
Total Core		100.0	%		2.4	%		2.4	%		2.0	%		2.6	%
Year over Year Results
YTD 2014 vs. YTD 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		2.3	%		2.8	%		8.2	%		0.2	%
Boston		8.3	%		4.4	%		3.7	%		3.3	%		3.9	%
Chicago		6.4	%		3.7	%		4.4	%		4.2	%		4.5	%
Florida		2.2	%		6.7	%		7.6	%		6.2	%		8.7	%
Long Island, New Jersey		17.9	%		3.4	%		3.8	%		6.1	%		2.3	%
Philadelphia		12.3	%		1.5	%		1.7	%		5.6	%		(0.6	%)
Washington, D.C.		26.7	%		0.7	%		1.0	%		3.9	%		(0.5	%)
Total Core		100.0	%		2.3	%		2.6	%		5.5	%		0.9	%

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

Page 19

Percentage Change in New Lease and Renewal Lease Rents Compared to
Expiring Lease Rents - Core Properties
	1Q '13						2Q '13						3Q '13						4Q '13						YTD '13
Region	New			Renewal			New			Renewal			New			Renewal			New			Renewal			New			Renewal
Baltimore		1.6	%		3.7	%		2.1	%		4.0	%		1.1	%		4.2	%		(1.1	%)		3.8	%		1.0	%		3.9	%
Boston		1.9	%		3.4	%		7.3	%		4.2	%		7.0	%		4.7	%		1.4	%		3.4	%		5.0	%		4.1	%
Chicago		0.5	%		3.0	%		2.3	%		4.0	%		2.4	%		3.9	%		0.4	%		4.5	%		1.8	%		3.9	%
Florida		4.6	%		4.3	%		7.9	%		3.6	%		5.7	%		4.0	%		5.1	%		4.0	%		6.0	%		3.9	%
Long Island, New Jersey		3.8	%		3.1	%		3.5	%		3.3	%		4.1	%		3.4	%		1.8	%		3.6	%		3.4	%		3.4	%
Philadelphia		(0.4	%)		2.9	%		2.4	%		3.7	%		0.0	%		4.3	%		(2.2	%)		2.9	%		0.1	%		3.6	%
Washington, D.C.		(0.3	%)		4.1	%		0.7	%		3.9	%		0.2	%		3.9	%		(3.0	%)		3.3	%		(0.6	%)		3.8	%
Total Core		1.3	%		3.6	%		2.7	%		3.8	%		2.0	%		4.0	%		(0.7	%)		3.5	%		1.5	%		3.7	%
	1Q '14						2Q '14
Region	New			Renewal			New			Renewal
Baltimore		0.3	%		3.3	%		3.4	%		3.7	%
Boston		0.4	%		3.0	%		5.3	%		3.8	%
Chicago		2.3	%		3.4	%		4.3	%		2.9	%
Florida		6.9	%		4.2	%		9.4	%		3.9	%
Long Island, New Jersey		1.3	%		2.8	%		4.4	%		2.7	%
Philadelphia		(2.0	%)		2.4	%		2.7	%		3.4	%
Washington, D.C.		(2.3	%)		2.7	%		(0.1	%)		3.0	%
Total Core		(0.2	%)		2.9	%		3.0	%		3.2	%

Page 20

Resident Statistics
Top Six Reasons for Moveouts
	2Q '14			1Q '14			4Q '13			3Q '13			2Q '13			1Q '13			Year '13			Year '12			Year '11
Employment related		14.8	%		13.9	%		13.1	%		12.9	%		13.6	%		14.7	%		13.5	%		13.2	%		13.4	%
Location, apartment size		14.5	%		14.0	%		12.2	%		13.9	%		13.4	%		12.3	%		13.1	%		12.6	%		13.1	%
Eviction, skip		12.1	%		14.6	%		13.4	%		10.9	%		13.3	%		14.9	%		12.9	%		14.2	%		16.4	%
Transfer within HME		11.2	%		15.4	%		16.1	%		12.1	%		11.9	%		14.1	%		13.4	%		13.1	%		11.6	%
Domestic Situation		11.1	%		8.2	%		8.1	%		10.9	%		12.2	%		8.2	%		10.1	%		10.2	%		9.6	%
Home purchase		10.8	%		10.6	%		13.3	%		12.7	%		12.5	%		11.2	%		12.5	%		11.3	%		10.4	%
Traffic - Core Properties													Turnover - Core Properties
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	2Q '14			YTD '14			2Q '14			YTD '14
	vs.			vs.			vs.			vs.
Region	2Q '13			YTD '13			2Q '13			YTD '13			2Q '14			2Q '13			YTD '14			YTD '13
Baltimore		(5.5	%)		(8.1	%)		4.5	%		4.7	%		10.9	%		10.6	%		19.0	%		18.3	%
Boston		(8.4	%)		(9.4	%)		11.7	%		5.9	%		12.0	%		12.4	%		20.3	%		20.9	%
Chicago		(6.4	%)		(5.3	%)		(7.7	%)		(7.0	%)		11.7	%		14.4	%		19.8	%		23.9	%
Florida		6.3	%		(5.1	%)		14.8	%		7.7	%		12.1	%		9.6	%		23.4	%		19.7	%
Long Island		(5.9	%)		(9.0	%)		3.8	%		2.0	%		8.0	%		9.0	%		15.3	%		16.3	%
New Jersey		3.8	%		(2.5	%)		2.2	%		(0.8	%)		9.8	%		9.7	%		17.8	%		17.4	%
Philadelphia		0.0	%		(1.9	%)		4.9	%		9.1	%		14.4	%		13.3	%		22.4	%		21.8	%
Washington, D.C.		(1.5	%)		(5.6	%)		8.5	%		4.7	%		9.5	%		9.7	%		17.1	%		17.5	%
Total Core		(3.2	%)		(6.2	%)		5.1	%		3.9	%		10.8	%		10.8	%		18.7	%		18.9	%
Bad Debt as % of Rent and Utility Recovery
	2Q '14			2Q '13			YTD '14			YTD '13
Total Core		0.80	%		0.83	%		0.85	%		0.85	%

Page 21

Net Operating Income Detail
($ in thousands, except per unit data)
Core Properties
							Qtr			%									YTD			%
	2Q '14			2Q '13			Variance			Variance			YTD '14			YTD '13			Variance			Variance
Rent	$	149,637		$	146,096		$	3,541			2.4	%	$	297,064		$	290,438		$	6,626			2.3	%
Utility recovery		5,454			5,284			170			3.2	%		13,770			12,433			1,337			10.8	%
Rent including recoveries		155,091			151,380			3,711			2.5	%		310,834			302,871			7,963			2.6	%
Other income		7,364			7,302			62			0.8	%		14,299			14,066			233			1.7	%
Total income		162,455			158,682			3,773			2.4	%		325,133			316,937			8,196			2.6	%
Operating & maintenance		(57,827	)		(56,685	)		(1,142	)		(2.0	%)		(121,884	)		(115,519	)		(6,365	)		(5.5	%)
Core Properties NOI	$	104,628		$	101,997		$	2,631			2.6	%	$	203,249		$	201,418		$	1,831			0.9	%
Physical Occupancy		95.4	%		95.8	%		(0.4	%)					95.2	%		95.6	%		(0.4	%)
Weighted Avg Rent per Unit	$	1,323		$	1,288		$	35			2.8	%	$	1,317		$	1,282		$	35			2.8	%

Acquired Properties (1)							Redevelopment Property (2)							Development Properties (3)
	2Q '14			YTD '14				2Q '14			YTD '14				2Q '14			YTD '14
Rent	$	1,738		$	3,277		Rent	$	3,215		$	6,468		Rent	$	432		$	566
Utility recovery		3			5		Utility recovery		108			252		Utility recovery		5			5
Rent including recoveries		1,741			3,282		Rent including recoveries		3,323			6,720		Rent including recoveries		437			571
Other income		67			100		Other income		133			243		Other income		36			56
Total income		1,808			3,382		Total income		3,456			6,963		Total income		473			627
Operating & maintenance		(686	)		(1,385	)	Operating & maintenance		(1,248	)		(2,547	)	Operating & maintenance		(541	)		(945	)
Acquired Properties NOI	$	1,122		$	1,997		Redevelopment Property NOI	$	2,208		$	4,416		Development Properties NOI	$	(68	)	$	(318	)
Physical Occupancy		94.0	%		93.6	%	Physical Occupancy		77.7	%		79.3	%	Physical Occupancy	(see development pipeline schedule)
Weighted Avg Rent per Unit	$	1,202		$	1,199		Weighted Avg Rent per Unit	$	1,629		$	1,622		Weighted Avg Rent per Unit	$	2,046		$	2,062

(1) Acquired Properties consist of acquired properties subsequent to January 1, 2013, such that full year operating results are not available.

(2) The Redevelopment Property is Arbor Park of Alexandria, where 851 units in 52 buildings commenced renovation in 2011 on a building by building basis.

(3) Development Properties consist of one property, Eleven55 Ripley.

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 25.1%.  This will adjust for the typical seasonal variability in NOI for each quarter.

Page 22

Operating Expense Detail - Core Properties
($ in thousands)
					Qtr			%							YTD			%
	2Q '14		2Q '13		Variance			Variance			YTD '14		YTD '13		Variance			Variance
Electricity	$	1,905	$	1,807	$	98			5.4	%	$	4,152	$	3,827	$	325			8.5	%
Gas		2,466		2,465		1			0.0	%		9,336		8,534		802			9.4	%
Water & sewer		4,467		4,449		18			0.4	%		9,010		8,938		72			0.8	%
Repairs & maintenance		9,248		8,879		369			4.2	%		15,682		15,125		557			3.7	%
Personnel expense		13,840		13,358		482			3.6	%		28,055		27,342		713			2.6	%
Advertising		1,279		1,255		24			1.9	%		2,477		2,431		46			1.9	%
Legal & professional		323		328		(5	)		(1.5	%)		591		698		(107	)		(15.3	%)
Office & telephone		1,721		1,555		166			10.7	%		3,383		3,174		209			6.6	%
Property insurance		1,458		1,269		189			14.9	%		4,690		2,440		2,250			92.2	%
Real estate taxes		15,916		15,979		(63	)		(0.4	%)		32,194		31,580		614			1.9	%
Snow		41		79		(38	)		(48.1	%)		1,998		909		1,089			119.8	%
Trash		924		872		52			6.0	%		1,859		1,764		95			5.4	%
Property management G&A		4,239		4,390		(151	)		(3.4	%)		8,457		8,757		(300	)		(3.4	%)
Total Core	$	57,827	$	56,685	$	1,142			2.0	%	$	121,884	$	115,519	$	6,365			5.5	%

Page 23

Discontinued Operations (1)
($ in thousands)
The results of discontinued operations are summarized for the three and six months ended June 30, 2014 and 2013 as follows:
	2Q '14		2Q '13		YTD '14		YTD '13
Revenues:
Rental income	$	-	$	4,505	$	2,015	$	11,357
Property other income		-		444		286		1,162
Total revenues		-		4,949		2,301		12,519
Expenses:
Operating and maintenance		-		1,769		892		4,395
Interest (2)		-		575		1,109		2,944
Depreciation and amortization		-		1,220		260		2,987
Total expenses		-		3,564		2,261		10,326
Income from discontinued operations		-		1,385		40		2,193
Gain on disposition of property		-		4,645		31,306		45,004
Discontinued operations	$	-	$	6,030	$	31,346	$	47,197

(1) Properties included in discontinued operations are listed in Summary Of Recent Sales.

(2) Includes debt extinguishment costs and other one-time costs incurred as a result of repaying property specific debt triggered upon sale of $802 for the six months ended June 30, 2014 and $1,416 for the six months ended June 30, 2013.

Page 24

Summary Of Recent Acquisitions
($ in millions, except unit and per unit data)
											Wtd Avg
			Purchase	# of		Cap (1)			Purchase		Price per
Community	Region	State	Date	Units		Rate			Price		Unit
2014 Acquisitions
The Preserve at Milltown	Philadelphia	PA	6/19/2014		376		6.3	%	$	45.0	$	119,681
Acquired after the close of the 2nd quarter
Willowbrook	Philadelphia	PA	7/30/2014		248		6.8	%		30.5		122,984
			Total 2014		624		6.5	%	$	75.5	$	120,994
2013 Acquisitions
Stone Hill	Philadelphia	PA	11/27/2013		205		6.8	%	$	15.5	$	75,610
Middlesex Crossing	Boston	MA	12/18/2013		252		6.4	%		40.3		159,722
			Total 2013		457		6.5	%	$	55.8	$	121,991
	Total 2014 and 2013 Acquisitions				1,081		6.5	%	$	131.3	$	121,415

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

Summary of Recent Sales
($ in millions, except unit and per unit data)
											Wtd Avg
			Sale	# of		Cap (2)			Sales		Price per		Unlevered
Community	Region	State	Date	Units		Rate			Price		Unit		IRR
2014 Sales
Cider Mill	Washington, D.C.	MD	2/26/2014		864		6.9	%	$	110.0	$	127,315		8.4	%
			Total 2014		864		6.9	%	$	110.0	$	127,315		8.4	%
2013 Sales
South Bay Manor	Long Island	NY	3/14/2013		61		6.4	%	$	11.1	$	181,967		10.7	%
Falkland Chase	Washington, D.C.	MD	3/29/2013		450		5.5	%		98.0		217,778		10.8	%
Castle Club	Philadelphia	PA	4/10/2013		158		7.2	%		15.0		94,937		7.4	%
Virginia Village	Washington, D.C.	VA	10/15/2013		344		5.9	%		68.0		197,674		13.4	%
			Total 2013		1,013		5.8	%	$	192.1	$	189,635		11.5	%
		Total 2014 and 2013 Sales			1,877		6.2	%	$	302.1	$	160,948		10.4	%

(2) Capitalization (Cap) rate based on historical NOI after an allowance for a 2.7% management fee but before capital expenditures.

Page 25

Breakdown of Units
				Net								Net
				Acquired/Sold/								Acquired/Sold/
		As of		Developed			As of		12/31/2013			Developed			As of		6/30/2014
Region	State	12/31/2012		in 2013			12/31/2013		% of Units			in 2014			6/30/2014		% of Units
Baltimore	MD		10,477		-			10,477		24.8	%		-			10,477		25.0	%
Boston	MA/ME		3,303		253			3,556		8.4	%		-			3,556		8.5	%
Chicago	IL		2,566		-			2,566		6.1	%		-			2,566		6.1	%
Florida	FL		836		-			836		2.0	%		-			836		2.0	%
Long Island, New Jersey	NY/NJ		7,225		(61	)		7,164		17.0	%		-			7,164		17.0	%
Philadelphia	PA		5,067		47			5,114		12.2	%		382			5,496		13.1	%
Washington, D.C.	MD/VA		13,161		(704	)		12,457		29.5	%		(602	)		11,855		28.3	%
Total			42,635		(465	)		42,170		100.0	%		(220	)		41,950		100.0	%

Page 26

Debt Summary Schedule
($ in thousands)
		Interest			06/30/14
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured
The Greens at Columbia	M&T Realty-Fannie Mae		3.93	%		8,814	08/01/14
Westchester West - 1st	Berkeley Point Capital - Freddie Mac		6.15	%		25,781	03/01/15
Westchester West - 2nd	Berkeley Point Capital - Freddie Mac		6.64	%		7,175	03/01/15
Stratford Greens	Capital One Bank		5.75	%		28,797	07/01/15
Sayville Commons	M&T Realty - Freddie Mac		5.00	%		36,636	08/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		31,663	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		21,701	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		18,736	09/01/15
Cypress Place Apartments	Prudential - Fannie Mae		6.56	%		9,696	11/01/15
Golf Club Apartments	Prudential - Fannie Mae		6.38	%		31,221	11/01/15
Northwood Apartments	M&T Realty - Freddie Mac		5.50	%		9,961	12/01/15
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.25	%		46,822	01/01/16
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.55	%		4,868	01/01/16
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.25	%		72,068	01/01/16
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.55	%		1,770	01/01/16
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.57	%		47,288	02/01/16
Devonshire - 1st	Wachovia - Fannie Mae		5.60	%		34,650	04/01/16
Devonshire - 2nd	Wachovia - Fannie Mae		6.24	%		7,943	04/01/16
Mid-Island	Prudential - Fannie Mae		5.48	%		18,349	04/01/16
Owings Run 1 & 2	Prudential - Fannie Mae		5.59	%		39,757	04/01/16
The Manor East	KeyBank - Freddie Mac		3.25	%		6,745	04/01/16
Country Village	Centerline (CIII) - Fannie Mae		5.52	%		17,390	06/01/16
Fox Hall Apartments	Columbia Nat'l - Freddie Mac		5.61	%		47,000	06/01/17
Mill Towne Village	Prudential - Fannie Mae		5.99	%		24,239	09/01/17
Royal Gardens Apts.	M&T Realty - Freddie Mac		5.83	%		47,000	11/01/17
Village Square 1, 2 & 3	Prudential - Fannie Mae		5.81	%		39,285	12/01/17
Chatham Hill	M&T Realty - Freddie Mac		5.59	%		42,096	01/01/18
William Henry Apartments	PNC - Fannie Mae		4.85	%		27,145	01/01/18
Seminary Towers Apartments	Prudential - Fannie Mae		5.49	%		53,515	07/01/18
The Manor (MD)	Prudential - Fannie Mae		4.23	%		43,812	11/01/18
Bonnie Ridge - 1st	Prudential Life		6.60	%		7,005	12/15/18
Bonnie Ridge - 2nd	Prudential Life		6.16	%		16,330	12/15/18
Bonnie Ridge - 3rd	Prudential Life		6.07	%		23,413	12/15/18

Page 27

Debt Summary Schedule
($ in thousands)
		Interest			06/30/14
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured
Annapolis Roads	Amerisphere - Fannie Mae		5.12	%		22,792	01/01/19
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.75	%		17,289	01/01/19
The Sycamores	M&T Realty - Freddie Mac		5.71	%		20,150	01/01/19
Top Field Apartments	M&T Realty - Fannie Mae		4.84	%		15,750	01/01/19
Westwood Village	M&T Realty - Freddie Mac		5.68	%		44,141	01/01/19
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.47	%		11,664	07/01/19
Glen Manor	Prudential - Fannie Mae		5.83	%		7,538	08/01/19
Ridley Brook	Prudential - Fannie Mae		5.83	%		12,514	08/01/19
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.50	%		46,623	08/01/19
Southern Meadows	Red Mortgage - Fannie Mae		5.36	%		38,680	10/01/19
Elmwood Terrace	M&T Realty - Fannie Mae		5.56	%		25,434	11/01/19
Lakeview	Greystone - Fannie Mae		5.31	%		8,623	12/01/19
The Landings	Prudential - Fannie Mae		5.60	%		24,840	01/01/20
East Meadow Apartments	M&T Realty - Freddie Mac		5.40	%		13,979	05/01/20
Selford Townhomes	M&T Realty - Freddie Mac		5.40	%		8,451	05/01/20
Stone Ends Apts.	M&T Realty - Freddie Mac		5.40	%		23,804	05/01/20
Tamarron Apartments	M&T Realty - Freddie Mac		5.40	%		13,987	05/01/20
The Manor (VA)	M&T Realty - Freddie Mac		5.40	%		13,127	05/01/20
Woodmont Village	M&T Realty - Freddie Mac		5.40	%		9,472	05/01/20
Trexler Park	Greystone - Fannie Mae		4.34	%		36,375	08/01/20
Arbor Park of Alexandria	Prudential - Fannie Mae		4.35	%		91,750	11/01/20
New Orleans Park	M&T Realty - Fannie Mae		4.58	%		22,337	11/01/20
Racquet Club East	PNC - Fannie Mae		4.74	%		35,794	12/01/20
Heritage Woods Apts	Greystone - Fannie Mae		5.39	%		13,812	01/01/21
The Meadows at Marlborough	Prudential - Fannie Mae		5.50	%		20,186	01/01/21
Home Properties of Devon	M&T Realty - Fannie Mae		4.85	%		57,815	08/01/21
Pleasant View Gardens	Prudential - Fannie Mae		4.51	%		90,878	11/01/21
Highland House	Arbor Comml - Fannie Mae		6.32	%		5,235	01/01/29
Wtd Avg - Fixed Secured			5.21	%	$	1,651,709

Page 28

Debt Summary Schedule
($ in thousands)
Variable Rate Secured
Sherry Lake	M&T Realty - Freddie Mac	2.90	%		24,022	04/01/17
Wtd Avg - Variable Secured		2.90	%	$	24,022
Wtd Avg - Total Secured Debt		5.17	%	$	1,675,731
Fixed Rate Unsecured
Private Placement Senior Notes - Series A	Various Investors	4.46	%	$	90,000	12/19/18
Private Placement Senior Notes - Series B	Various Investors	5.00	%		60,000	12/19/21
Senior Notes	Prudential Life Insurance	4.16	%		50,000	06/27/19
Bank Term Loan-Interest Rate Swapped to Maturity	M&T Bank et. al.	1.69	%		250,000	08/18/18
Variable Rate Unsecured
Revolving Line of Credit	M&T Bank et. al.	1.19	%		282,500	08/18/17
Wtd Avg - Total Unsecured Debt		2.27	%	$	732,500
Total Combined Debt		4.29	%	$	2,408,231

Page 29

Debt Summary Schedule
($ in thousands)
% Of Portfolio - Fixed	87.3	%
% Of Portfolio - Variable	12.7	%
			Interest			Years To
			Rate %			Maturity
Wtd Avg - Total Fixed Rate Debt				4.73	%	4.15
Wtd Avg - Total Variable Rate Debt				1.32	%	3.11
Wtd Avg - Combined Debt				4.29	%	4.02

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
2014		3.93	%		8,814		-			-		8,814		0.41	%
2015		5.17	%		221,367		-			-		221,367		10.41	%
2016		5.40	%		297,650		-			-		297,650		14.00	%
2017		5.78	%		157,524		2.90	%		24,022		181,546		8.54	%
2018		3.54	%		553,315		-			-		553,315		26.03	%
2019		5.14	%		321,197		-			-		321,197		15.11	%
2020		4.82	%		293,915		-			-		293,915		13.83	%
2021		4.84	%		242,691		-			-		242,691		11.42	%
2022		-			-		-			-		-		0.00	%
2023		-			-		-			-		-		0.00	%
2024 - 2029		6.32	%		5,235		-			-		5,235		0.25	%
TOTAL		4.73	%	$	2,101,709		2.90	%	$	24,022	$	2,125,731		100.00	%

Page 30

Debt Summary Schedule
Unencumbered Properties
Property		# Units		Region	State	Property		# Units		Region	State
Canterbury Apartments			618	Baltimore	MD	Yorkshire Village			40	Long Island	NY
Dunfield	*		312	Baltimore	MD	Barrington Gardens			148	New Jersey	NJ
Gateway Village			132	Baltimore	MD	East Hill Gardens			33	New Jersey	NJ
Howard Crossing			1,350	Baltimore	MD	Hackensack Gardens			198	New Jersey	NJ
Middlebrooke Apartments			208	Baltimore	MD	Jacob Ford Village			270	New Jersey	NJ
Morningside Heights			1,050	Baltimore	MD	Oak Manor			77	New Jersey	NJ
Saddle Brooke Apartments			468	Baltimore	MD	Pleasure Bay			270	New Jersey	NJ
The Apts at Cambridge Court			544	Baltimore	MD	Wayne Village			275	New Jersey	NJ
The Coves at Chesapeake			469	Baltimore	MD	Windsor Realty			67	New Jersey	NJ
Westbrooke Apartments			110	Baltimore	MD	Hill Brook Apartments			274	Philadelphia	PA
Gardencrest			696	Boston	MA	Home Properties of Bryn Mawr			316	Philadelphia	PA
Liberty Place			107	Boston	MA	Racquet Club South			103	Philadelphia	PA
Middlesex Crossing			252	Boston	MA	Stone Hill Apartments			205	Philadelphia	PA
The Commons at Haynes Farm			302	Boston	MA	The Preserve at Milltown	*		376	Philadelphia	PA
The Heights at Marlborough			348	Boston	MA	Waterview			203	Philadelphia	PA
The Townhomes of Beverly			204	Boston	MA	1200 East West Highway			247	Washington, D.C.	MD
The Village at Marshfield			276	Boston	MA	Eleven55 Ripley			351	Washington, D.C.	MD
Westwoods			35	Boston	MA	Hunter's Glen			108	Washington, D.C.	MD
Liberty Commons			120	Boston	ME	Seminary Hill			296	Washington, D.C.	MD
Redbank Village			500	Boston	ME	Courts at Huntington Station			421	Washington, D.C.	MD
Blackhawk Apartments			371	Chicago	IL	Woodleaf Apartments			228	Washington, D.C.	MD
Courtyards Village			224	Chicago	IL	Braddock Lee			255	Washington, D.C.	VA
Lakeview Townhomes			120	Chicago	IL	Mt. Vernon Square			1,387	Washington, D.C.	VA
The Colony			783	Chicago	IL	Newport Village			937	Washington, D.C.	VA
The Gates of Deer Grove			204	Chicago	IL	Park Shirlington			294	Washington, D.C.	VA
The New Colonies			672	Chicago	IL	Somerset Park			108	Washington, D.C.	VA
Bayview & Colonial			160	Long Island	NY	The Apts at Cobblestone Square			314	Washington, D.C.	VA
Cambridge Village			82	Long Island	NY	The Apts at Wellington Trace			240	Washington, D.C.	VA
Crescent Club			257	Long Island	NY	The Courts at Dulles			411	Washington, D.C.	VA
Hawthorne Court	*		434	Long Island	NY	Village at Potomac Falls			247	Washington, D.C.	VA
Heritage Square			80	Long Island	NY	West Springfield Village			244	Washington, D.C.	VA
Holiday Square			144	Long Island	NY	Woodway at Trinity Centre			504	Washington, D.C.	VA
Lake Grove Apartments			368	Long Island	NY
						Total Number of Units:			21,447
						Total Number of Properties:			65

* Property added to unencumbered pool during Q2 '14.

Page 31

Recurring Capital Expenditure Summary

Effective January 1, 2014, 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 $900 per apartment unit compared to $848 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, community centers, new windows, and kitchen and bath apartment upgrades.  Revenue generating capital improvements are expected to 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	$	1,673		10	$	167	$	13	$	180
Blinds, shades		148		3		49		6		55
Carpets, cleaning		924		4		231		155		386
Computers, equipment, misc.(4)		124		6		21		22		43
Contract repairs		-		-		-		182		182
Exterior painting (5)		87		3		29		-		29
Flooring		175		7		25		27		52
Furnace, air (HVAC)		880		19		46		84		130
Hot water heater		302		7		43		-		43
Interior painting		-		-		-		194		194
Kitchen, bath cabinets upgrades		1,272		15		85		-		85
Landscaping site		-		-		-		122		122
New roof		906		24		38		-		38
Parking lot site		900		15		60		-		60
Pool, exercise facility		130		15		9		56		65
Windows major		1,712		20		86		-		86
Miscellaneous (6)		190		17		11		-		11
Total	$	9,423			$	900	$	861	$	1,761

(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 $861 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 32

Capital Expenditure Summary

The Company estimates that on an annual basis $900 per unit is spent on recurring capital expenditures in 2014.  During the three months ended June 30, 2014 approximately $225 per unit was spent on recurring capital expenditures.  For the six months ended June 30, 2014 approximately $450 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 and six months ended June 30, 2014 as follows:

For the three months ended June 30, 2014
($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Capex		Per Unit(a)		Capex		Per Unit(a)		Improvements		Per Unit(a)
New buildings	$	-	$	-	$	344	$	9	$	344	$	9
Major building improvements		1,273		32		4,365		108		5,638		140
Roof replacements		384		9		874		22		1,258		31
Site improvements		927		23		5,995		148		6,922		171
Apartment upgrades		1,221		30		8,160		202		9,381		232
Appliances		1,591		40		-		-		1,591		40
Carpeting/flooring		2,587		64		544		13		3,131		77
HVAC/mechanicals		899		22		3,386		84		4,285		106
Miscellaneous		212		5		560		14		772		19
Total	$	9,094		225	$	24,228	$	600	$	33,322	$	825

(a) Calculated using the weighted average number of units owned, including 39,915 core units, 2013 acquisition units of 457, and 2014 acquisition units of 50 for the three months ended June 30, 2014.

For the six months ended June 30, 2014
($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Capex		Per Unit(a)		Capex		Per Unit(a)		Improvements		Per Unit(a)
New Buildings	$	-	$	-	$	503	$	12	$	503	$	12
Major building improvements		2,545		63		6,342		157		8,887		220
Roof replacements		768		19		875		22		1,643		41
Site improvements		1,394		35		5,994		148		7,388		183
Apartment upgrades		3,064		76		14,210		352		17,274		428
Appliances		3,016		75		2		-		3,018		75
Carpeting/flooring		5,171		128		640		16		5,811		144
HVAC/mechanicals		1,798		44		6,015		149		7,813		193
Miscellaneous		424		10		1,121		28		1,545		38
Total	$	18,180	$	450	$	35,702	$	884	$	53,882	$	1,334

(a) Calculated using the weighted average number of units owned, including 39,915 core units, 2013 acquisition units of 457, and 2014 acquisition units of 25 for the six months ended June 30, 2014.

Page 33

Capital Expenditure Summary (continued)

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

For the three months ended June 30, 2014
($ in thousands, except per unit data)
					Non-				Total
	Recurring				Recurring				Capital
	Capex		Per Unit(a)		Capex		Per Unit(a)		Improvements		Per Unit(a)
Core Communities	$	8,987	$	225	$	23,095	$	579	$	32,082	$	804
2014 Acquisition Communities		4		80		-		-		4		80
2013 Acquisition Communities		103		225		1,133		2,480		1,236		2,705
Subtotal		9,094		225		24,228		600		33,322		825
2014 Disposed Communities		-		-		-		-		-		-
2013 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (b)		-		-		-		-		716		-
Total	$	9,094	$	225	$	24,228	$	600	$	34,038	$	825

(a) Calculated using the weighted average number of units owned, including 39,915 core units, 2013 acquisition units of 457, and 2014 acquisition units of 50 for the three months ended June 30, 2014.

(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.  Corporate office expenditures are excluded from per unit figures.

For the six months ended June 30, 2014
($ 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	$	17,970	$	450	$	34,048	$	853	$	52,018	$	1,303
2014 Acquisition Communities		4		160		-		-		4		160
2013 Acquisition Communities		206		450		1,654		3,620		1,860		4,070
Sub-total		18,180		450		35,702		884		53,882		1,334
2014 Disposed Communities		45		165		-		2		45		165
2013 Disposed Communities		-		-		-		-		-		-
Corporate office expenditures (b)		-		-		-		-		1,079		-
Total	$	18,225	$	450	$	35,702	$	884	$	55,006	$	1,324

(a) Calculated using the weighted average number of units owned, including 39,915 core units, 2013 acquisition units of 457, 2014 acquisition units of 25, and 2014 disposed units of 272 for the six months ended June 30, 2014.

(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.  Corporate office expenditures are excluded from per unit figures.

Adjusted Net Operating Income - Core Properties
($ in thousands)
	Quarter			Quarter
	6/30/2014			6/30/2013		Change
Net Operating Income	$	104,628		$	101,997		2.6	%
Less: Non-recurring Capex @ 6%		(1,386	)		-		-
Adjusted Net Operating Income	$	103,242		$	101,997		1.2	%

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 34

Development Pipeline as of June 30, 2014
($ in thousands)
																			%
		Units				Cost		Costs					%			%			Physical
	Property	when		Cost		Estimate		Incurred			Initial	Date	Complete			Leased			Occup
	Type	Complete		Estimate		Per Unit			(1)	Start	Occup	Complete		(2)			(3)			(4)
Under construction:
Eleven55 Ripley	Mid-Rise and		379	$	111,000	$	293	$	109,149	4Q 11	4Q 13	3Q 14		92.6	%		53.0	%		39.6	%
Silver Spring, MD	High-Rise
Courts at Spring Mill Station	Donut/Podium		385		89,000		231		57,475	2Q 12	3Q 14	1Q 15		0.0	%		n/a			n/a
Conshohocken, PA
Total								$	166,624

(1) Costs classified as Construction in Progress at June 30, 2014 are comprised of:

Eleven55 Ripley (a)	$	79,482
Courts at Spring Mill Station		57,475
	$	136,957

(a) The difference between Costs Incurred and Construction in Progress represents units placed into service.

(2) Represents the percentage of units that have been completed and are available to rent as of July 31, 2014.

(3) Represents the percentage of units that have been leased as of July 31, 2014.

(4) Represents the percentage of units occupied as of July 31, 2014.

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2014 Earnings Guidance
	Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
2014 compared to 2013
FFO per share - 2014 guidance	$	0.996		$	1.045		$	1.11 - $1.15		$	1.16 - $1.20		$	4.31 to $4.39
Midpoint of guidance	$	0.996		$	1.045		$	1.13		$	1.18		$	4.35
FFO per share - 2013 actual	$	1.053		$	1.113		$	1.086		$	1.111		$	4.368
Projected improvement		-5.4	%		-6.1	%		4.1	%		6.2	%		-0.4	%
2014 compared to 2013 based on "Operating FFO" - OFFO
OFFO per share - 2014 guidance	$	0.996		$	1.11		$	1.11 - $1.15		$	1.16 - $1.20		$	4.38 to $4.46
Midpoint of guidance	$	0.996		$	1.11		$	1.13		$	1.18		$	4.42
OFFO per share - 2013 actual	$	1.053		$	1.113		$	1.087		$	1.115		$	4.373
Actual/projected improvement		-5.4	%		-0.3	%		4.0	%		5.8	%		1.1	%
The difference between FFO and OFFO is expensed acquisition costs and impairment and other charges related to the Company's exit from new development business

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2014 Earnings Guidance
	Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
FFO and OFFO Guidance changes from May 1, 2014 Guidance to Current Guidance:
Amount triggered due to exit from New Development business
Severance								-0.015			-0.005			-0.020
Reduced capitalized interest on land parcels previously designated for development								-0.010			-0.010			-0.020
Delayed NOI from two development projects under construction								-0.010			-0.010			-0.020
Normal Operations: NOI, G&A, interest expense - net change								-0.005			-0.005			-0.010
								-0.040			-0.030			-0.070
Core Property Assumptions:
Total revenue growth		2.8	%		2.4	%		3.1% - 3.5	%		3.9% - 4.3	%	2.7% to 3.7%
Expense growth		8.9	%		2.0	%		4.7% - 5.1	%		5.0% - 5.4	%	4.4% to 5.4%
NOI growth		-0.8	%		2.6	%		2.2% - 2.6	%		3.2% - 3.6	%	1.9% to 2.9%
The ranges for the year remain unchanged from what was previously provided in May. Expense growth may come in towards the higher end of the range, while NOI may come in towards the lower end of the range.
Core Occupancy Assumptions:
2014 physical occupancy		95.0	%		95.4	%		95.6	%		95.2	%		95.3	%
2013 physical occupancy		95.5	%		95.8	%		94.9	%		94.8	%		95.2	%
Change in occupancy		-0.5	%		-0.4	%		0.7	%		0.4	%		0.1	%

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2014 Earnings Guidance

General & Administrative - A decrease of 6.2% at the midpoint is expected with a range between $26.4 million and $27.2 million forecasted.

Interest Expense - guidance assumptions remain unchanged from the original guidance provided on February 6, 2014 and is projected to range from

$101.9 million to $102.7 million for the year, without significant differences between the quarters.

Acquisition range for the year remains unchanged at $150 million to $250 million.

Disposition range for the year remains unchanged at $160 million to $260 million

Anticipated expense from acquisition costs for 2014 remains unchanged at $0.9 million versus actual of $0.3 million in 2013.

Capital expenditures:
Recurring	$35 million
Upgrading and repositioning	$100 million	remains unchanged from original guidance given February 6, 2014

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