EXHIBIT 99

Home Properties, Inc.

Earnings Release and Supplemental Information

Third Quarter 2014

Table of Contents

	Page
Earnings Release	1-7
Property Results, Quarterly and Year-to-Date	8-15
Physical Occupancy Comparison by Region	16
Operating Results by Region	17
New Lease and Renewal Lease Rents vs. Expiring Lease Rents	18
Resident Statistics	19
Net Operating Income Detail and Seasonality Factor for NAV Calculation	20
Operating Expense Detail	21
Discontinued Operations	22
Summary of Recent Acquisitions	23
Summary of Recent Sales	23
Breakdown of Units	24
Debt Summary Schedule	25-29
Recurring Capital Expenditure and Adjusted NOI Summary	30-32
Development Pipeline	33
2014 Earnings Guidance	34-35

FOR IMMEDIATE RELEASE

Home Properties Reports Third Quarter 2014 Results and

Announces Quarterly Dividend

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

Results for the Quarter

·   Earnings per share (“EPS”) was $0.45 compared to $0.44 in the third quarter of 2013.

·   Funds from Operations ("FFO") and Operating Funds from Operations (“OFFO”) were $1.13 per share compared to $1.09 per share in the prior year period.

·   Results for the quarter were negatively impacted by the Company’s decision to exit the business of developing new apartment communities as announced on July 31. In the third quarter, net severance charges of $1.024 million were expensed in connection with the elimination of development employee positions. The Company also recognized $602,000 of interest expense related to land and predevelopment carrying costs that would have otherwise been capitalized. The impact to third quarter OFFO on a per share basis is summarized below:

OFFO as Reported	$	1.13
Severance		0.02
Reduced Capitalized Interest on Land Parcels
Previously Designated for Development		0.01
OFFO as Adjusted for Impact of Exit From
New Development Business	$	1.16

Results for the Nine Months

·   EPS was $1.64 per share compared to $1.92 per share in the first nine months of 2013. The decrease is primarily attributable to one-time charges of $0.07 per share incurred in connection with the Company’s exit from the business of developing new apartment communities and lower gains on the disposition of property of $0.24 per share.

·   FFO was $3.17 per share compared to $3.25 per share in the prior year period. The decrease is primarily attributable to charges related to the Company’s exit from the new development business.

·   OFFO was $3.24 per share compared to $3.25 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.

Home Properties Reports Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

Page 2 of 7

“It was a solid quarter for Home Properties,” said Edward J. Pettinella, President and Chief Executive Officer. “Rental income for our core properties increased 3.2% over the third quarter of 2013, with renewal leases executed at rents 3.6% higher than expiring leases and new leases 2.5% higher. Occupancy was 40 basis points above the prior year level. These positive operating trends and our outlook for the fourth quarter led to our affirmation of 2014 guidance previously provided.

In early October, we obtained a BBB rating from Standard & Poor’s. We now have strong ratings from the three primary rating agencies and plan to complete our initial public offering of unsecured debt in the fourth quarter, further strengthening our balance sheet with this new source of capital.”

Same-Property Operating Results (1)

	Third Quarter 2014 Compared to Third Quarter 2013	Third Quarter 2014 Compared to Second Quarter 2014
Rental Income	3.2% increase	0.8% increase
Total Revenues	3.2% increase	0.4% increase
Property Level    Operating Expenses	5.7% increase	2.1% increase
Net Operating Income (“NOI”)	1.9% increase	0.5% decrease
Average Physical    Occupancy(2)	95.3%, or a 40 basis point increase	95.3%, or a 10 basis point decrease
Average Monthly Rental Rates	2.6% increase to $1,340	1.3% increase to $1,340

(1) For 115 core properties containing 39,916 apartment units owned since January 1, 2013

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

Acquisitions

As previously reported, the Company acquired Willowbrook Apartments, a 248-unit garden apartment community located in Jeffersonville, Pennsylvania, on July 30.

“Our acquisition pipeline is robust,” commented Mr. Pettinella. “The deal flow increased in several of our markets during the third quarter and we reviewed more than 50 potential transactions. We expect to complete approximately $250 million of acquisitions in 2014.”

Development

Construction continues on the Company’s remaining new development projects:

·   Eleven55 Ripley in Silver Spring, Maryland is expected to be completed in the fourth quarter of 2014. Approximately 65% of the units have been leased.

·   The Courts at Spring Mill Station in Conshohocken, Pennsylvania is expected to be completed in the first quarter of 2015. The first of two buildings in the community became ready for occupancy on October 1. Approximately 11% of the units have been leased.

Home Properties Reports Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

Page 3 of 7

Capital Markets

On July 31, the Company repaid two fixed rate mortgages – an $8.8 million 4.93% fixed-rate mortgage with an August 1, 2014 maturity date and a $5.0 million 6.99% fixed-rate mortgage with a January 1, 2029 maturity date. Both properties have been added to the Company’s unencumbered asset pool.

On October 3, Standard & Poor's Ratings Services assigned its 'BBB' corporate credit rating to Home Properties Inc. The outlook is stable.

As of September 30, 2014:

·   The Company had approximately $13 million of cash on hand and an additional $75 million of available capacity on its corporate credit facility.

·   Unencumbered assets represented 57.0% of total undepreciated assets, up from 51.9% at December 31, 2013.

·   The Company’s ratio of debt-to-total market capitalization was 38.6%.

·   Total debt of $2.5 billion was outstanding at a weighted average interest rate of 4.2% and staggered maturities averaging 3.7 years.

·   Approximately 84% of total indebtedness was at fixed rates.

·   Interest coverage for the quarter was 4.1 times and the fixed charge ratio was 3.9 times.

2014 Guidance

Based on actual year-to-date results and expectations for the balance of the year, the Company affirms the midpoint of its prior FFO per share guidance of $4.35 for the year and $1.18 for the fourth quarter as well as the midpoint of its prior OFFO per share guidance of $4.42 for the year and $1.18 for the fourth quarter.

The ranges for each period were narrowed as follows:

·   FFO per share for the year of $4.33 to $4.37

·   FFO per share for the fourth quarter of $1.16 to $1.20

·   OFFO per share for the year of $4.40 to $4.44

·   OFFO per share for the fourth quarter of $1.16 to $1.20

Dividend Declared

The Company announced a regular cash dividend on the Company’s common shares of $0.73 per share for the quarter ended September 30, 2014. The dividend is payable on November 21, 2014 to shareholders of record on November 10, 2014 and is equivalent to an annualized rate of $2.92 per share. The current annual dividend represents a 4.6% yield based on the October 29 closing price of $63.71 Home Properties’ common stock will begin trading ex-dividend on November 6, 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.

Home Properties Reports Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

Page 4 of 7

Third 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).

Fourth Quarter Conference/Event Schedule

Home Properties is scheduled to participate in REITWorld 2014®: NAREIT's Annual Convention for All Things REIT® in Atlanta, November 5-7. Presentation materials will be available at www.homeproperties.com in the “Investors” section.

Fourth Quarter and Year End Earnings Release and Conference Call

The Company’s fourth quarter 2014 financial results are scheduled to be released after the stock market closes on Thursday, February 5, 2015. A conference call, which will be simultaneously webcast, is scheduled for Friday, February 6, 2015 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 multifamily real estate investment trust that owns, operates, acquires and upgrades apartment communities in suburbs of major metropolitan areas primarily along the East Coast of the United States. An S&P 400 Company, Home Properties owns and operates 122 communities containing 42,250 apartment units. For more information, please visit the Company’s website at www.homeproperties.com.

Home Properties Reports Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

Page 5 of 7

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
Rental income	$	158,535		$	149,588		$	465,910		$	446,194
Property other income		12,754			12,140			41,484			39,149
Other income		22			207			344			671
Total revenues		171,311			161,935			507,738			486,014
Operating and maintenance		62,245			57,060			189,006			175,061
General and administrative		5,288			6,152			21,672			22,571
Interest		25,062			27,499			75,586			86,184
Depreciation and amortization		46,463			42,793			136,009			126,207
Other expenses		335			16			617			48
Impairment and other charges		1,024			-			4,866			-
Total expenses		140,417			133,520			427,756			410,071
Income from continuing operations		30,894			28,415			79,982			75,943
Discontinued operations
Income from discontinued operations		-			1,209			40			3,402
Gain on disposition of property		-			-			31,306			45,004
Discontinued operations		-			1,209			31,346			48,406
Net income		30,894			29,624			111,328			124,349
Net income attributable to noncontrolling interest		(4,650	)		(4,586	)		(16,824	)		(20,395	)
Net income attributable to common stockholders	$	26,244		$	25,038		$	94,504		$	103,954
Reconciliation from net income attributable to common stockholders to Funds From Operations:
Net income attributable to common stockholders	$	26,244		$	25,038		$	94,504		$	103,954
Real property depreciation and amortization		45,882			43,472			134,557			128,832
Noncontrolling interest		4,650			4,586			16,824			20,395
Gain on disposition of property		-			-			(31,306	)		(45,004	)
FFO - basic and diluted, as defined by NAREIT		76,776			73,096			214,579			208,177
Loss from early extinguishment of debt in connection with sale of real estate		-			-			802			1,416
FFO - basic and diluted (1)	$	76,776		$	73,096		$	215,381		$	209,593

(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 Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

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HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data – Unaudited)

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2014			2013			2014			2013
FFO – basic and diluted	$	76,776		$	73,096		$	215,381		$	209,593
FFO – basic and diluted	$	76,776		$	73,096		$	215,381		$	209,593
Acquisition costs of closed deals included in other expenses		335			16			617			48
Impairment and other charges		-			-			3,842			-
Operating FFO (2)	$	77,111		$	73,112		$	219,840		$	209,641
FFO – basic and diluted	$	76,776		$	73,096		$	215,381		$	209,593
Recurring non-revenue generating capital expenses		(9,209	)		(8,897	)		(27,433	)		(26,830	)
AFFO (3)	$	67,567		$	64,199		$	187,948		$	182,763
Operating FFO	$	77,111		$	73,112		$	219,840		$	209,641
Recurring non-revenue generating capital expenses		(9,209	)		(8,897	)		(27,433	)		(26,830	)
Operating AFFO (2) (3)	$	67,902		$	64,215		$	192,407		$	182,811
Weighted average shares/units outstanding:
Shares – basic		57,412.6			56,370.1			57,248.1			53,444.2
Shares – diluted		57,970.4			56,943.8			57,735.3			54,051.5
Shares/units – basic (4)		67,611.3			66,717.3			67,458.8			63,834.0
Shares/units – diluted (4)		68,169.1			67,291.0			67,946.0			64,441.3
Per share/unit:
Net income – basic	$	0.46		$	0.44		$	1.65		$	1.95
Net income – diluted	$	0.45		$	0.44		$	1.64		$	1.92
FFO – basic	$	1.14		$	1.10		$	3.19		$	3.28
FFO – diluted	$	1.13		$	1.09		$	3.17		$	3.25
Operating FFO (2)	$	1.13		$	1.09		$	3.24		$	3.25
AFFO (3)	$	0.99		$	0.95		$	2.77		$	2.84
Operating AFFO (2) (3)	$	1.00		$	0.95		$	2.83		$	2.84
Common Dividend paid	$	0.73		$	0.70		$	2.19		$	2.10

(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 Third Quarter 2014 Results and Announces Quarterly Dividend

October 30, 2014

Page 7 of 7

HOME PROPERTIES, INC.

SUMMARY CONSOLIDATED BALANCE SHEETS

(in thousands - Unaudited)

	September 30, 2014			December 31, 2013
Land	$	816,478		$	786,868
Land held for sale		13,734			-
Construction in progress		129,704			187,976
Buildings, improvements and equipment		4,767,930			4,645,921
		5,727,846			5,620,765
Accumulated depreciation		(1,349,206	)		(1,243,243	)
Real estate, net		4,378,640			4,377,522
Cash and cash equivalents		13,145			9,853
Cash in escrows		25,088			23,738
Accounts receivable		13,205			14,937
Prepaid expenses		25,667			22,089
Deferred charges		9,632			11,945
Other assets		5,749			7,793
Total assets	$	4,471,126		$	4,467,877
Mortgage notes payable	$	1,654,394		$	1,814,217
Unsecured notes payable		450,000			450,000
Unsecured line of credit		371,000			193,000
Accounts payable		30,160			27,540
Accrued interest payable		9,949			8,392
Accrued expenses and other liabilities		34,414			33,936
Security deposits		19,079			18,479
Total liabilities		2,568,996			2,545,564
Common stockholders’ equity		1,616,392			1,629,253
Noncontrolling interest		285,738			293,060
Total equity		1,902,130			1,922,313
Total liabilities and equity	$	4,471,126		$	4,467,877
Total shares/units outstanding:
Common stock		57,366.9			56,961.6
Operating partnership units		10,195.1			10,287.2
		67,562.0			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
Third Quarter 2014															3Q '14 Versus 3Q '13
			3Q '14												% Growth												3Q '14
	# of		Company			Date	3Q '14		3Q '14			3Q '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	$	1,351		93.9	%		92.3	%		1.0	%		3.8	%		(0.2	%)		6.2	%
Bonnie Ridge		960				7/1/1999		1,207		94.3	%		94.4	%		2.5	%		3.3	%		5.8	%		2.2	%
Canterbury		618				7/15/1999		1,084		93.4	%		94.8	%		2.2	%		0.4	%		10.2	%		(4.3	%)
Charleston Place		858				9/30/2010		1,283		95.4	%		96.3	%		3.3	%		2.5	%		7.2	%		0.5	%
Country Village		344				4/30/1998		1,056		95.9	%		93.9	%		0.4	%		3.8	%		6.6	%		2.2	%
Dunfield		312				11/1/2007		1,275		93.7	%		92.7	%		1.2	%		1.9	%		8.8	%		(1.7	%)
Fox Hall		720				3/28/2007		970		91.6	%		92.0	%		3.2	%		1.8	%		(3.8	%)		5.3	%
Gateway Village		132				7/15/1999		1,466		95.3	%		94.2	%		1.9	%		1.4	%		0.2	%		2.0	%
Heritage Woods		164				10/4/2006		1,211		95.1	%		96.4	%		1.4	%		1.9	%		9.2	%		(2.0	%)
Howard Crossing		1,350				6/28/2012		1,178		95.0	%		96.0	%		3.8	%		3.8	%		2.0	%		4.6	%
Middlebrooke		208				4/1/2010		1,066		95.5	%		96.0	%		3.3	%		3.1	%		6.6	%		1.4	%
Mill Towne Village		384				5/31/2001		985		95.1	%		95.5	%		2.0	%		3.3	%		6.5	%		1.6	%
Morningside Heights		1,050				4/30/1998		1,025		92.6	%		91.7	%		4.7	%		6.3	%		3.9	%		7.6	%
Owings Run		504				7/15/1999		1,354		96.6	%		96.9	%		3.4	%		2.8	%		3.1	%		2.6	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,303		94.9	%		95.1	%		2.0	%		2.5	%		11.5	%		(2.8	%)
Saddle Brooke		468				10/29/2008		1,228		95.7	%		94.8	%		5.7	%		7.4	%		(0.7	%)		11.5	%
Selford		102				7/15/1999		1,539		96.1	%		95.9	%		3.6	%		5.3	%		6.3	%		4.9	%
The Apts. at Cambridge Court		544				8/23/2011		1,391		94.3	%		92.1	%		0.5	%		3.2	%		9.1	%		(0.0	%)
The Coves at Chesapeake		469				11/20/2006		1,381		94.3	%		91.0	%		2.0	%		8.8	%		4.1	%		11.2	%
The Greens at Columbia		168				7/29/2010		1,488		94.8	%		94.2	%		(0.3	%)		(0.9	%)		10.4	%		(5.6	%)
Top Field		156				10/4/2006		1,402		96.6	%		96.6	%		2.7	%		4.0	%		5.1	%		3.4	%
Village Square		370				7/15/1999		1,266		94.0	%		94.7	%		2.9	%		0.9	%		7.1	%		(2.2	%)
Westbrooke		110				4/1/2010		957		96.0	%		93.2	%		4.7	%		4.9	%		3.0	%		6.3	%
Total Baltimore		10,477		24.8	%		$	1,198		94.4	%		94.2	%		2.8	%		3.5	%		4.8	%		2.9	%		22.9	%
Boston
Gardencrest		696				6/28/2002	$	1,821		96.1	%		95.2	%		3.1	%		5.8	%		4.2	%		6.4	%
Highland House		172				5/31/2006		1,363		97.6	%		95.8	%		3.8	%		8.0	%		7.7	%		8.3	%
Liberty Commons		120				8/30/2006		1,358		97.9	%		97.3	%		2.0	%		0.7	%		(8.3	%)		4.9	%
Liberty Place		107				6/6/2006		1,599		96.0	%		97.5	%		1.4	%		1.3	%		8.3	%		(2.5	%)
Middlesex Crossing		252				12/18/2013		1,489		94.9	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		1,070		97.2	%		97.1	%		7.8	%		7.7	%		3.6	%		10.3	%
Stone Ends		280				2/12/2003		1,440		96.9	%		93.9	%		3.7	%		8.0	%		10.2	%		7.1	%
The Commons at Haynes Farm		302				7/15/2011		1,439		96.6	%		97.3	%		4.1	%		3.5	%		1.5	%		4.5	%
The Heights at Marlborough		348				9/7/2006		1,395		95.9	%		94.1	%		4.5	%		7.7	%		2.7	%		10.6	%
The Meadows at Marlborough		264				9/7/2006		1,344		96.3	%		95.2	%		3.1	%		1.9	%		(0.5	%)		3.3	%
The Townhomes of Beverly		204				2/15/2007		1,728		96.5	%		96.0	%		3.2	%		5.3	%		5.3	%		5.4	%
The Village at Marshfield		276				3/17/2004		1,331		95.9	%		94.5	%		3.2	%		2.7	%		7.7	%		0.5	%
Westwoods		35				4/30/2007		1,443		95.6	%		97.1	%		2.9	%		6.4	%		(9.1	%)		14.8	%
Total Boston		3,556		8.4	%		$	1,459		96.6	%		95.7	%		3.8	%		5.4	%		3.9	%		6.1	%		9.6	%

Page 8

Property Results
Third Quarter 2014															3Q '14 Versus 3Q '13
			3Q '14												% Growth												3Q '14
	# of		Company			Date	3Q '14		3Q '14			3Q '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	$	972		95.3	%		93.7	%		4.2	%		6.6	%		8.2	%		5.1	%
Courtyards Village		224				8/29/2001		979		97.2	%		97.5	%		3.7	%		1.9	%		8.1	%		(2.7	%)
Cypress Place		192				12/27/2000		1,136		97.7	%		96.7	%		5.1	%		5.3	%		25.0	%		(7.1	%)
Lakeview Townhomes		120				10/18/2010		1,288		96.2	%		95.9	%		2.1	%		3.8	%		14.3	%		(4.4	%)
The Colony		783				9/1/1999		987		96.8	%		97.2	%		4.9	%		2.9	%		21.4	%		(8.2	%)
The Gates of Deer Grove		204				12/15/2011		1,133		98.0	%		95.2	%		5.1	%		9.8	%		29.4	%		(4.0	%)
The New Colonies		672				6/23/1998		785		97.0	%		95.9	%		1.3	%		5.3	%		(2.0	%)		12.9	%
Total Chicago		2,566		6.1	%		$	968		96.8	%		96.1	%		3.8	%		4.7	%		12.8	%		(1.4	%)		3.8	%
Long Island
Bayview / Colonial		160				11/1/2000	$	1,415		98.5	%		96.7	%		2.9	%		4.8	%		1.0	%		7.2	%
Cambridge Village		82				3/1/2002		2,072		96.1	%		97.2	%		5.3	%		6.4	%		8.1	%		5.3	%
Crescent Club		257				9/30/2010		1,518		96.9	%		96.0	%		6.5	%		9.3	%		3.9	%		12.6	%
Devonshire Hills		656				7/16/2001		1,742		96.6	%		95.7	%		3.2	%		4.5	%		6.7	%		3.4	%
Hawthorne Court		434				4/4/2002		1,598		96.7	%		96.4	%		4.4	%		6.9	%		(0.1	%)		12.6	%
Heritage Square		80				4/4/2002		1,977		97.4	%		97.3	%		2.9	%		5.5	%		2.9	%		7.4	%
Holiday Square		144				5/31/2002		1,371		98.2	%		98.6	%		3.9	%		3.4	%		2.4	%		4.0	%
Lake Grove		368				2/3/1997		1,611		97.1	%		94.9	%		2.8	%		5.4	%		(1.8	%)		9.6	%
Mid-Island Estates		232				7/1/1997		1,550		97.9	%		98.2	%		2.6	%		3.1	%		5.9	%		1.5	%
Sayville Commons		342				7/15/2005		1,774		97.0	%		98.1	%		4.4	%		3.8	%		0.6	%		6.2	%
Southern Meadows		452				6/29/2001		1,592		95.4	%		95.5	%		3.3	%		3.3	%		3.3	%		3.2	%
Westwood Village		242				3/1/2002		2,677		95.1	%		97.2	%		3.0	%		(0.6	%)		3.3	%		(3.2	%)
Woodmont Village		97				3/1/2002		1,483		97.3	%		96.6	%		4.7	%		4.3	%		11.0	%		1.1	%
Yorkshire Village		40				3/1/2002		2,003		97.5	%		95.9	%		0.9	%		3.1	%		(3.1	%)		8.1	%
Total Long Island		3,586		8.5	%		$	1,709		96.8	%		96.5	%		3.6	%		4.3	%		2.9	%		5.3	%		10.6	%

Page 9

Property Results
Third Quarter 2014															3Q '14 Versus 3Q '13
			3Q '14												% Growth												3Q '14
	# of		Company			Date	3Q '14		3Q '14			3Q '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)
Northern New Jersey
Barrington Gardens		148				3/1/2005	$	1,459		97.1	%		96.6	%		5.1	%		2.8	%		2.4	%		3.0	%
Chatham Hill		308				1/30/2004		2,031		96.6	%		95.9	%		(0.3	%)		2.9	%		0.1	%		3.9	%
East Hill Gardens		33				7/8/1998		1,702		94.3	%		95.5	%		4.1	%		0.9	%		(1.2	%)		1.9	%
Hackensack Gardens		198				3/1/2005		1,303		96.4	%		97.2	%		6.2	%		6.5	%		(1.6	%)		12.1	%
Jacob Ford Village		270				2/15/2007		1,487		97.8	%		98.9	%		3.6	%		2.6	%		11.1	%		(0.1	%)
Lakeview		106				7/8/1998		1,520		96.9	%		96.6	%		2.1	%		5.6	%		7.4	%		4.7	%
Northwood		134				1/30/2004		1,505		95.0	%		96.0	%		3.6	%		1.0	%		5.4	%		(2.0	%)
Oak Manor		77				7/8/1998		2,126		96.1	%		96.2	%		3.9	%		4.4	%		(15.0	%)		15.4	%
Pleasant View		1,142				7/8/1998		1,275		96.7	%		96.9	%		3.5	%		3.1	%		18.9	%		(5.4	%)
Pleasure Bay		270				7/8/1998		1,236		96.8	%		94.5	%		4.8	%		7.6	%		(4.0	%)		16.1	%
Royal Gardens		550				5/28/1997		1,375		96.8	%		97.5	%		3.2	%		1.9	%		30.9	%		(12.1	%)
Wayne Village		275				7/8/1998		1,542		97.9	%		95.9	%		2.2	%		4.4	%		5.6	%		3.8	%
Windsor Realty		67				7/8/1998		1,382		96.8	%		96.0	%		2.6	%		3.2	%		4.3	%		2.6	%
Total Northern New Jersey		3,578		8.5	%		$	1,438		96.8	%		96.7	%		3.1	%		3.4	%		10.9	%		(0.4	%)		9.4	%
Philadelphia
Glen Manor		180				9/23/1997		845		95.5	%		94.0	%		4.2	%		6.6	%		6.2	%		6.9	%
Golf Club		399				3/15/2000		1,245		93.9	%		95.3	%		4.3	%		2.8	%		1.2	%		3.5	%
Hill Brook Place		274				7/28/1999		975		93.9	%		94.4	%		1.5	%		(0.8	%)		2.0	%		(3.3	%)
Home Properties of Bryn Mawr		316				3/15/2000		1,604		88.1	%		87.0	%		3.8	%		4.0	%		11.9	%		0.1	%
Home Properties of Devon		631				3/15/2000		1,344		94.8	%		93.9	%		3.1	%		3.3	%		0.2	%		4.8	%
New Orleans Park		442				7/28/1999		958		91.8	%		93.5	%		4.3	%		1.1	%		6.8	%		(3.9	%)
Racquet Club East		466				7/7/1998		1,187		94.6	%		95.7	%		2.6	%		2.3	%		(2.2	%)		4.9	%
Racquet Club South		103				5/27/1999		983		94.5	%		96.5	%		1.4	%		(1.9	%)		(4.8	%)		0.4	%
Ridley Brook		244				7/28/1999		1,014		94.7	%		94.6	%		1.6	%		0.2	%		0.2	%		0.2	%
Sherry Lake		298				7/23/1998		1,357		97.0	%		95.1	%		0.8	%		3.8	%		15.0	%		(1.6	%)
Stone Hill		205				11/27/2013		941		94.2	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,280		96.6	%		95.0	%		1.7	%		4.4	%		2.0	%		5.8	%
The Landings		384				11/22/1996		1,126		96.6	%		93.5	%		(0.1	%)		2.0	%		9.4	%		(2.7	%)
The Preserve at Milltown		376				6/19/2014		1,097		95.0	%		n/a			n/a			n/a			n/a			n/a
Trexler Park		250				3/15/2000		1,193		96.3	%		94.4	%		0.6	%		5.3	%		9.6	%		2.9	%
Trexler Park West		216				8/15/2008		1,410		96.6	%		94.7	%		(1.5	%)		(1.0	%)		0.3	%		(1.6	%)
Waterview		203				7/14/2011		1,162		96.2	%		96.1	%		5.1	%		3.2	%		3.6	%		2.9	%
William Henry		363				3/15/2000		1,264		95.6	%		94.2	%		1.8	%		3.9	%		(3.0	%)		8.0	%
Willowbrook		248				7/30/2014		1,209		95.3	%		n/a			n/a			n/a			n/a			n/a
Total Philadelphia		5,744		13.6	%		$	1,204		94.6	%		94.1	%		2.3	%		2.6	%		3.7	%		2.0	%		11.9	%

Page 10

Property Results
Third Quarter 2014															3Q '14 Versus 3Q '13
			3Q '14												% Growth												3Q '14
	# of		Company			Date	3Q '14		3Q '14			3Q '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)
Southeast Florida
The Hamptons		668				7/7/2004	$	1,137		96.1	%		95.0	%		6.8	%		8.6	%		5.4	%		11.5	%
Vinings at Hampton Village		168				7/7/2004		1,260		96.6	%		96.0	%		6.1	%		7.2	%		7.0	%		7.3	%
Total Southeast Florida		836		2.0	%		$	1,162		96.2	%		95.2	%		6.7	%		8.3	%		5.7	%		10.5	%		1.5	%
Washington, D.C.
1200 East West		247				5/11/2010	$	1,842		93.8	%		96.0	%		(3.8	%)		(4.1	%)		1664.0	%		(36.8	%)
Arbor Park of Alexandria		851				Redevelopment		1,654		79.5	%		86.0	%		6.1	%		(2.4	%)		0.2	%		(3.7	%)
Braddock Lee		256				3/13/1998		1,468		95.6	%		97.5	%		1.5	%		(0.7	%)		3.4	%		(3.2	%)
Cinnamon Run		511				12/28/2005		1,347		93.4	%		91.9	%		2.6	%		5.4	%		2.7	%		6.5	%
Courts at Huntington Station		421				6/15/2011		1,960		95.5	%		93.4	%		(2.4	%)		0.9	%		(5.0	%)		3.9	%
East Meadow		150				8/1/2000		1,508		96.4	%		96.0	%		1.4	%		2.2	%		12.4	%		(2.7	%)
Eleven55 Ripley		351				Under Construction		1,954		43.7	%		0.0	%		n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,053		94.8	%		94.0	%		3.7	%		5.7	%		4.9	%		6.3	%
Hunters Glen		108				4/19/2011		1,079		92.9	%		94.0	%		3.9	%		2.5	%		3.5	%		1.9	%
Mount Vernon Square		1,387				12/27/2006		1,380		93.7	%		93.4	%		1.1	%		(0.4	%)		3.7	%		(2.5	%)
Newport Village		937				10/17/2011		1,588		92.9	%		93.0	%		0.5	%		(2.4	%)		3.8	%		(5.7	%)
Park Shirlington		294				3/13/1998		1,478		96.9	%		95.4	%		2.3	%		4.9	%		1.7	%		7.0	%
Peppertree Farm		879				12/28/2005		1,330		92.1	%		94.1	%		3.7	%		1.4	%		0.0	%		2.2	%
Seminary Hill		296				7/1/1999		1,484		96.2	%		95.8	%		3.1	%		5.6	%		1.1	%		9.4	%
Seminary Towers		545				7/1/1999		1,495		96.5	%		95.5	%		0.6	%		2.5	%		(3.7	%)		6.7	%
Somerset Park		108				10/11/2011		1,538		96.0	%		95.8	%		0.9	%		2.9	%		(4.4	%)		7.3	%
Tamarron		132				7/15/1999		1,692		92.7	%		92.1	%		1.4	%		2.5	%		1.0	%		3.1	%
The Apts. at Cobblestone Square		314				6/14/2012		1,362		96.8	%		96.1	%		2.7	%		1.8	%		3.2	%		0.9	%
The Apts. at Wellington Trace		240				3/2/2004		1,460		95.7	%		93.3	%		1.9	%		3.7	%		(1.1	%)		6.2	%
The Courts at Dulles		411				11/30/2011		1,544		95.7	%		93.8	%		(1.4	%)		(1.1	%)		3.9	%		(3.7	%)
The Courts at Fair Oaks		364				9/30/2010		1,549		94.7	%		95.0	%		(0.4	%)		(0.6	%)		4.3	%		(2.6	%)
The Manor - MD		435				8/31/2001		1,421		94.3	%		91.0	%		2.6	%		10.6	%		19.2	%		6.2	%
The Manor - VA		198				2/19/1999		1,225		93.8	%		94.7	%		3.4	%		2.4	%		0.7	%		3.4	%
The Manor East		164				5/11/2012		1,184		94.6	%		94.6	%		4.8	%		5.2	%		2.8	%		6.6	%
The Sycamores		185				12/16/2002		1,483		96.0	%		93.9	%		(1.6	%)		0.5	%		3.9	%		(1.5	%)
Village at Potomac Falls		247				8/5/2010		1,485		96.0	%		95.1	%		1.2	%		1.9	%		1.0	%		2.3	%
West Springfield		244				11/18/2002		1,592		94.9	%		94.9	%		(2.0	%)		(1.2	%)		1.6	%		(2.6	%)
Westchester West		345				12/30/2008		1,449		93.9	%		92.7	%		3.5	%		4.2	%		7.7	%		2.3	%
Woodleaf		228				3/19/2004		1,311		95.2	%		95.3	%		0.3	%		2.0	%		4.8	%		0.8	%
Woodway at Trinity Centre		504				5/17/2012		1,460		96.0	%		95.6	%		2.8	%		2.4	%		1.4	%		2.8	%
Total Washington, D.C.		11,856		28.1	%		$	1,451		94.6	%		94.1	%		1.2	%		1.5	%		5.8	%		(0.7	%)		30.3	%
Total Properties		42,199		100.0	%		$	1,348		94.5	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		39,916					$	1,340		95.3	%		94.9	%		2.6	%		3.2	%		5.7	%		1.9	%

(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 11

Property Results
September 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	$	1,327		94.4	%		92.9	%		0.9	%		3.1	%		10.4	%		(0.7	%)
Bonnie Ridge		960				7/1/1999		1,190		94.5	%		94.1	%		2.2	%		2.3	%		5.3	%		0.9	%
Canterbury		618				7/15/1999		1,077		94.3	%		94.9	%		3.1	%		2.9	%		8.3	%		0.1	%
Charleston Place		858				9/30/2010		1,269		95.4	%		95.8	%		3.4	%		3.1	%		8.2	%		0.9	%
Country Village		344				4/30/1998		1,044		95.6	%		94.0	%		(0.3	%)		1.7	%		6.4	%		(1.0	%)
Dunfield		312				11/1/2007		1,269		93.0	%		94.3	%		1.7	%		(0.4	%)		12.7	%		(6.3	%)
Fox Hall		720				3/28/2007		962		92.7	%		92.6	%		3.9	%		1.8	%		2.9	%		1.1	%
Gateway Village		132				7/15/1999		1,454		96.6	%		95.6	%		2.5	%		3.3	%		3.9	%		3.1	%
Heritage Woods		164				10/4/2006		1,199		96.5	%		95.2	%		0.7	%		2.6	%		12.3	%		(2.3	%)
Howard Crossing		1,350				6/28/2012		1,165		94.2	%		95.1	%		3.4	%		4.2	%		5.2	%		3.6	%
Middlebrooke		208				4/1/2010		1,053		96.1	%		95.9	%		4.0	%		5.3	%		7.4	%		4.2	%
Mill Towne Village		384				5/31/2001		975		95.8	%		96.2	%		2.0	%		3.1	%		11.2	%		(1.3	%)
Morningside Heights		1,050				4/30/1998		1,010		93.1	%		93.3	%		4.5	%		4.5	%		11.7	%		1.1	%
Owings Run		504				7/15/1999		1,342		95.2	%		96.0	%		3.1	%		2.5	%		5.4	%		1.3	%
Ridgeview at Wakefield Valley		204				1/13/2005		1,283		94.1	%		96.3	%		2.5	%		2.6	%		10.6	%		(1.8	%)
Saddle Brooke		468				10/29/2008		1,204		95.9	%		94.2	%		5.2	%		7.2	%		5.7	%		8.0	%
Selford		102				7/15/1999		1,519		96.9	%		95.6	%		3.3	%		5.1	%		6.2	%		4.6	%
The Apts. at Cambridge Court		544				8/23/2011		1,373		93.7	%		92.1	%		0.1	%		2.4	%		4.3	%		1.4	%
The Coves at Chesapeake		469				11/20/2006		1,367		92.8	%		93.1	%		2.1	%		1.8	%		6.8	%		(0.4	%)
The Greens at Columbia		168				7/29/2010		1,484		94.8	%		95.3	%		1.0	%		0.6	%		10.6	%		(3.3	%)
Top Field		156				10/4/2006		1,385		96.1	%		95.8	%		2.7	%		3.6	%		8.1	%		1.7	%
Village Square		370				7/15/1999		1,255		94.3	%		94.9	%		2.5	%		1.6	%		5.0	%		(0.1	%)
Westbrooke		110				4/1/2010		943		96.2	%		95.5	%		4.2	%		4.3	%		3.3	%		5.0	%
Total Baltimore		10,477		24.8	%		$	1,185		94.4	%		94.4	%		2.7	%		3.0	%		7.0	%		1.1	%		23.3	%
Boston
Gardencrest		696				6/28/2002	$	1,792		95.7	%		96.3	%		4.5	%		4.1	%		2.0	%		5.0	%
Highland House		172				5/31/2006		1,350		94.8	%		95.0	%		4.0	%		3.0	%		1.3	%		4.3	%
Liberty Commons		120				8/30/2006		1,340		97.0	%		96.5	%		2.0	%		1.4	%		3.7	%		0.4	%
Liberty Place		107				6/6/2006		1,594		95.8	%		95.9	%		2.9	%		0.7	%		(0.3	%)		1.4	%
Middlesex Crossing		252				12/18/2013		1,448		95.7	%		n/a			n/a			n/a			n/a			n/a
Redbank Village		500				7/8/1998		1,038		97.2	%		96.7	%		7.2	%		8.3	%		0.5	%		13.3	%
Stone Ends		280				2/12/2003		1,420		96.9	%		95.6	%		4.4	%		4.3	%		7.8	%		2.5	%
The Commons at Haynes Farm		302				7/15/2011		1,419		97.1	%		97.3	%		4.8	%		4.0	%		(0.1	%)		6.3	%
The Heights at Marlborough		348				9/7/2006		1,372		96.5	%		95.1	%		4.7	%		5.5	%		7.6	%		4.2	%
The Meadows at Marlborough		264				9/7/2006		1,324		96.0	%		96.2	%		4.1	%		3.0	%		5.5	%		1.5	%
The Townhomes of Beverly		204				2/15/2007		1,704		95.9	%		96.6	%		4.7	%		4.0	%		6.1	%		3.0	%
The Village at Marshfield		276				3/17/2004		1,314		95.7	%		95.8	%		4.3	%		2.7	%		5.4	%		1.3	%
Westwoods		35				4/30/2007		1,430		95.6	%		96.2	%		3.0	%		4.7	%		4.0	%		5.2	%
Total Boston		3,556		8.4	%		$	1,436		96.3	%		96.2	%		4.6	%		4.2	%		3.5	%		4.7	%		9.3	%

Page 12

Property Results
September 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	$	954		95.2	%		95.1	%		3.7	%		3.8	%		6.1	%		1.6	%
Courtyards Village		224				8/29/2001		968		97.3	%		97.8	%		4.2	%		3.6	%		6.0	%		1.5	%
Cypress Place		192				12/27/2000		1,119		97.1	%		97.7	%		5.6	%		5.2	%		15.9	%		(1.8	%)
Lakeview Townhomes		120				10/18/2010		1,278		96.9	%		96.5	%		2.4	%		4.4	%		16.6	%		(4.9	%)
The Colony		783				9/1/1999		968		96.9	%		97.0	%		4.5	%		4.6	%		10.7	%		0.3	%
The Gates of Deer Grove		204				12/15/2011		1,107		97.1	%		96.1	%		4.3	%		5.4	%		14.4	%		(1.7	%)
The New Colonies		672				6/23/1998		777		97.1	%		96.4	%		0.7	%		4.7	%		(4.0	%)		14.2	%
Total Chicago		2,566		6.1	%		$	953		96.8	%		96.6	%		3.5	%		4.5	%		6.9	%		2.5	%		4.0	%
Long Island
Bayview / Colonial		160				11/1/2000	$	1,402		98.0	%		97.8	%		3.2	%		4.7	%		5.3	%		4.4	%
Cambridge Village		82				3/1/2002		2,021		96.7	%		97.7	%		4.3	%		4.0	%		7.0	%		2.1	%
Crescent Club		257				9/30/2010		1,494		96.4	%		96.5	%		6.9	%		8.2	%		6.4	%		9.3	%
Devonshire Hills		656				7/16/2001		1,722		96.7	%		96.3	%		3.0	%		4.3	%		3.7	%		4.6	%
Hawthorne Court		434				4/4/2002		1,578		97.0	%		97.1	%		4.3	%		5.6	%		2.1	%		8.6	%
Heritage Square		80				4/4/2002		1,950		97.5	%		97.6	%		3.2	%		4.2	%		10.6	%		0.0	%
Holiday Square		144				5/31/2002		1,358		97.9	%		98.7	%		3.4	%		1.8	%		7.2	%		(1.8	%)
Lake Grove		368				2/3/1997		1,591		96.1	%		96.2	%		3.0	%		3.1	%		6.3	%		1.3	%
Mid-Island Estates		232				7/1/1997		1,533		98.0	%		97.7	%		2.3	%		3.5	%		6.7	%		1.6	%
Sayville Commons		342				7/15/2005		1,752		97.3	%		97.4	%		4.1	%		3.7	%		0.2	%		6.5	%
Southern Meadows		452				6/29/2001		1,576		95.9	%		96.0	%		3.5	%		4.6	%		5.7	%		3.7	%
Westwood Village		242				3/1/2002		2,614		96.6	%		95.8	%		1.7	%		1.7	%		4.4	%		(0.1	%)
Woodmont Village		97				3/1/2002		1,459		97.3	%		96.6	%		3.8	%		6.3	%		8.2	%		5.3	%
Yorkshire Village		40				3/1/2002		1,985		96.5	%		95.9	%		(0.4	%)		(2.5	%)		(5.8	%)		0.4	%
Total Long Island		3,586		8.5	%		$	1,686		96.9	%		96.8	%		3.4	%		4.1	%		4.4	%		3.9	%		10.6	%

Page 13

Property Results
September 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)
Northern New Jersey
Barrington Gardens		148				3/1/2005	$	1,443		97.0	%		97.2	%		5.3	%		4.4	%		10.5	%		0.9	%
Chatham Hill		308				1/30/2004		2,027		93.7	%		95.1	%		1.7	%		2.6	%		5.4	%		1.5	%
East Hill Gardens		33				7/8/1998		1,688		95.4	%		95.7	%		4.1	%		1.7	%		6.8	%		(1.0	%)
Hackensack Gardens		198				3/1/2005		1,276		97.2	%		96.6	%		4.7	%		6.5	%		4.1	%		8.2	%
Jacob Ford Village		270				2/15/2007		1,468		97.2	%		98.0	%		4.0	%		4.1	%		9.2	%		2.0	%
Lakeview		106				7/8/1998		1,506		97.2	%		97.3	%		2.2	%		3.4	%		6.4	%		1.7	%
Northwood		134				1/30/2004		1,487		96.7	%		96.1	%		3.4	%		4.1	%		4.2	%		4.0	%
Oak Manor		77				7/8/1998		2,107		96.3	%		96.9	%		5.0	%		4.5	%		8.0	%		2.8	%
Pleasant View		1,142				7/8/1998		1,263		96.4	%		96.5	%		3.4	%		2.8	%		9.8	%		(1.5	%)
Pleasure Bay		270				7/8/1998		1,206		96.1	%		95.3	%		5.2	%		5.1	%		4.6	%		5.5	%
Royal Gardens		550				5/28/1997		1,363		97.2	%		96.4	%		3.0	%		4.1	%		14.2	%		(1.5	%)
Wayne Village		275				7/8/1998		1,526		96.2	%		97.0	%		2.6	%		1.9	%		7.3	%		(0.8	%)
Windsor Realty		67				7/8/1998		1,382		96.2	%		97.1	%		3.1	%		1.7	%		4.5	%		(0.2	%)
Total Northern New Jersey		3,578		8.5	%		$	1,424		96.4	%		96.5	%		3.4	%		3.5	%		8.5	%		0.7	%		9.3	%
Philadelphia
Glen Manor		180				9/23/1997		831		94.5	%		95.6	%		3.1	%		1.7	%		3.8	%		(0.5	%)
Golf Club		399				3/15/2000		1,224		95.2	%		95.4	%		4.2	%		3.6	%		3.3	%		3.8	%
Hill Brook Place		274				7/28/1999		969		94.7	%		95.1	%		1.3	%		(0.1	%)		4.8	%		(4.3	%)
Home Properties of Bryn Mawr		316				3/15/2000		1,606		90.6	%		91.7	%		5.6	%		3.1	%		6.0	%		1.7	%
Home Properties of Devon		631				3/15/2000		1,322		95.2	%		94.8	%		2.2	%		2.7	%		4.3	%		1.9	%
New Orleans Park		442				7/28/1999		946		93.8	%		93.9	%		3.5	%		3.5	%		3.7	%		3.4	%
Racquet Club East		466				7/7/1998		1,170		93.7	%		95.6	%		2.3	%		0.3	%		0.3	%		0.4	%
Racquet Club South		103				5/27/1999		971		92.9	%		95.3	%		1.2	%		(2.4	%)		1.5	%		(5.9	%)
Ridley Brook		244				7/28/1999		1,004		94.7	%		95.1	%		1.3	%		0.2	%		3.4	%		(2.6	%)
Sherry Lake		298				7/23/1998		1,337		97.1	%		96.2	%		0.8	%		3.0	%		11.4	%		(1.2	%)
Stone Hill		205				11/27/2013		933		91.7	%		n/a			n/a			n/a			n/a			n/a
The Brooke at Peachtree Village		146				8/15/2005		1,272		96.3	%		97.1	%		2.5	%		2.7	%		6.9	%		0.2	%
The Landings		384				11/22/1996		1,114		96.2	%		95.6	%		(0.4	%)		0.8	%		12.5	%		(6.8	%)
The Preserve at Milltown		376				6/19/2014		1,076		95.0	%		n/a			n/a			n/a			n/a			n/a
Trexler Park		250				3/15/2000		1,167		96.2	%		95.6	%		0.8	%		3.5	%		12.9	%		(2.0	%)
Trexler Park West		216				8/15/2008		1,386		97.3	%		96.5	%		(1.1	%)		(0.9	%)		(0.1	%)		(1.4	%)
Waterview		203				7/14/2011		1,144		96.1	%		95.1	%		4.9	%		4.8	%		2.4	%		6.1	%
William Henry		363				3/15/2000		1,244		94.8	%		95.1	%		1.6	%		1.7	%		2.7	%		1.1	%
Willowbrook		248				7/30/2014		1,209		95.3	%		n/a			n/a			n/a			n/a			n/a
Total Philadelphia		5,744		13.6	%		$	1,188		94.9	%		95.1	%		2.2	%		2.0	%		5.0	%		0.2	%		11.4	%

Page 14

Property Results
September 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)
Southeast Florida
The Hamptons		668				7/7/2004	$	1,115		95.9	%		94.6	%		6.3	%		8.4	%		6.5	%		10.0	%
Vinings at Hampton Village		168				7/7/2004		1,241		96.6	%		96.9	%		5.9	%		5.9	%		4.2	%		7.3	%
Total Southeast Florida		836		2.0	%		$	1,140		96.1	%		95.1	%		6.2	%		7.8	%		6.1	%		9.3	%		1.5	%
Washington, D.C.
1200 East West		247				5/11/2010	$	1,849		93.3	%		96.4	%		(2.7	%)		(3.4	%)		61.7	%		(19.4	%)
Arbor Park of Alexandria		851				Redevelopment		1,633		79.4	%		80.8	%		5.5	%		1.9	%		1.9	%		1.9	%
Braddock Lee		256				3/13/1998		1,457		96.5	%		97.2	%		1.6	%		1.1	%		1.5	%		0.8	%
Cinnamon Run		511				12/28/2005		1,338		92.6	%		92.8	%		2.8	%		3.6	%		(6.7	%)		8.4	%
Courts at Huntington Station		421				6/15/2011		1,968		94.1	%		94.4	%		(1.3	%)		(0.4	%)		(3.7	%)		1.3	%
East Meadow		150				8/1/2000		1,493		96.1	%		96.5	%		1.7	%		3.4	%		6.7	%		1.7	%
Eleven55 Ripley		351				Under Construction		2,016		26.3	%		0.0	%		n/a			n/a			n/a			n/a
Elmwood Terrace		504				6/30/2000		1,036		95.1	%		95.1	%		3.5	%		2.9	%		2.5	%		3.3	%
Hunters Glen		108				4/19/2011		1,059		94.0	%		94.0	%		3.6	%		4.7	%		1.3	%		6.9	%
Mount Vernon Square		1,387				12/27/2006		1,368		93.3	%		94.5	%		1.8	%		0.2	%		5.2	%		(2.4	%)
Newport Village		937				10/17/2011		1,580		93.0	%		94.9	%		1.0	%		(2.1	%)		5.6	%		(6.2	%)
Park Shirlington		294				3/13/1998		1,472		95.7	%		95.8	%		2.5	%		2.9	%		3.5	%		2.5	%
Peppertree Farm		879				12/28/2005		1,318		92.4	%		93.6	%		3.5	%		2.4	%		4.7	%		1.2	%
Seminary Hill		296				7/1/1999		1,468		96.9	%		96.4	%		3.2	%		5.5	%		2.9	%		7.4	%
Seminary Towers		545				7/1/1999		1,488		95.8	%		96.5	%		0.8	%		0.9	%		(1.4	%)		2.4	%
Somerset Park		108				10/11/2011		1,530		97.3	%		97.1	%		1.3	%		3.3	%		1.5	%		4.4	%
Tamarron		132				7/15/1999		1,672		94.9	%		93.4	%		0.7	%		3.0	%		2.6	%		3.1	%
The Apts. at Cobblestone Square		314				6/14/2012		1,347		96.1	%		95.6	%		2.6	%		3.5	%		6.6	%		1.8	%
The Apts. at Wellington Trace		240				3/2/2004		1,434		96.1	%		95.0	%		0.6	%		1.2	%		5.6	%		(0.8	%)
The Courts at Dulles		411				11/30/2011		1,540		95.9	%		95.2	%		(0.9	%)		(0.8	%)		5.1	%		(3.9	%)
The Courts at Fair Oaks		364				9/30/2010		1,545		94.8	%		96.2	%		0.1	%		(1.7	%)		5.0	%		(4.5	%)
The Manor - MD		435				8/31/2001		1,399		94.5	%		94.2	%		2.8	%		4.4	%		11.7	%		0.8	%
The Manor - VA		198				2/19/1999		1,204		94.6	%		95.4	%		4.6	%		5.3	%		3.4	%		6.4	%
The Manor East		164				5/11/2012		1,167		93.5	%		93.7	%		5.0	%		5.5	%		(2.9	%)		10.9	%
The Sycamores		185				12/16/2002		1,475		96.3	%		95.2	%		(1.3	%)		(0.5	%)		4.4	%		(3.2	%)
Village at Potomac Falls		247				8/5/2010		1,469		95.5	%		96.1	%		1.4	%		1.4	%		4.1	%		(0.1	%)
West Springfield		244				11/18/2002		1,583		95.6	%		96.2	%		(0.9	%)		(1.7	%)		0.4	%		(2.7	%)
Westchester West		345				12/30/2008		1,429		93.1	%		92.9	%		3.3	%		3.7	%		7.6	%		1.6	%
Woodleaf		228				3/19/2004		1,306		96.3	%		96.4	%		1.0	%		2.3	%		9.3	%		(0.5	%)
Woodway at Trinity Centre		504				5/17/2012		1,440		95.8	%		96.0	%		2.0	%		2.2	%		3.7	%		1.5	%
Total Washington, D.C.		11,856		28.1	%		$	1,440		94.5	%		95.0	%		1.5	%		1.2	%		4.5	%		(0.6	%)		30.6	%
Total Properties		42,199		100.0	%		$	1,334		94.4	%		n/a			n/a			n/a			n/a			n/a			100.0	%
Total Core Properties		39,916					$	1,325		95.2	%		95.4	%		2.7	%		2.8	%		5.6	%		1.2	%

(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 15

Physical Occupancy Comparison by Region - Core Properties
Sequential Comparison
Third Quarter 2014 vs. Second Quarter 2014
Region	% Units			3Q '14			2Q '14			Variance
Baltimore		26.2	%		94.4	%		94.5	%		(0.1	%)
Boston		8.3	%		96.6	%		96.5	%		0.1	%
Chicago		6.4	%		96.8	%		97.4	%		(0.6	%)
Long Island		9.0	%		96.8	%		97.5	%		(0.7	%)
Northern New Jersey		9.0	%		96.8	%		96.4	%		0.4	%
Philadelphia		12.3	%		94.6	%		95.0	%		(0.4	%)
Southeast Florida		2.1	%		96.2	%		95.6	%		0.6	%
Washington, D.C.		26.7	%		94.6	%		94.7	%		(0.1	%)
Total Core		100.0	%		95.3	%		95.4	%		(0.1	%)
Year over Year Comparison
Third Quarter 2014 vs. Third Quarter 2013
Region	% Units			3Q '14			3Q'13			Variance
Baltimore		26.2	%		94.4	%		94.2	%		0.2	%
Boston		8.3	%		96.6	%		95.7	%		0.9	%
Chicago		6.4	%		96.8	%		96.1	%		0.7	%
Long Island		9.0	%		96.8	%		96.5	%		0.3	%
Northern New Jersey		9.0	%		96.8	%		96.7	%		0.1	%
Philadelphia		12.3	%		94.6	%		94.1	%		0.5	%
Southeast Florida		2.1	%		96.2	%		95.2	%		1.0	%
Washington, D.C.		26.7	%		94.6	%		94.1	%		0.5	%
Total Core		100.0	%		95.3	%		94.9	%		0.4	%
September vs. Quarter Comparison
Region	% Units			Sep '14			3Q '14			Variance
Baltimore		26.2	%		94.6	%		94.4	%		0.2	%
Boston		8.3	%		96.8	%		96.6	%		0.2	%
Chicago		6.4	%		96.8	%		96.8	%		0.0	%
Long Island		9.0	%		96.5	%		96.8	%		(0.3	%)
Northern New Jersey		9.0	%		96.8	%		96.8	%		0.0	%
Philadelphia		12.3	%		95.1	%		94.6	%		0.5	%
Southeast Florida		2.1	%		95.5	%		96.2	%		(0.7	%)
Washington, D.C.		26.7	%		94.4	%		94.6	%		(0.2	%)
Total Core		100.0	%		95.3	%		95.3	%		0.0	%

Page 16

Operating Results by Region - Core Properties
Sequential Results
Third Quarter 2014 vs. Second Quarter 2014
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		1.2	%		0.4	%		3.0	%		(0.9	%)
Boston		8.3	%		2.3	%		2.1	%		(0.9	%)		3.6	%
Chicago		6.4	%		0.3	%		(0.7	%)		5.9	%		(5.7	%)
Long Island		9.0	%		0.5	%		0.5	%		(1.7	%)		1.8	%
Northern New Jersey		9.0	%		1.1	%		1.1	%		5.6	%		(1.3	%)
Philadelphia		12.3	%		0.7	%		(0.7	%)		1.0	%		(1.7	%)
Southeast Florida		2.1	%		2.0	%		2.1	%		2.7	%		1.5	%
Washington, D.C.		26.7	%		0.2	%		0.3	%		2.3	%		(0.7	%)
Total Core		100.0	%		0.8	%		0.4	%		2.1	%		(0.5	%)
Year over Year Results
Third Quarter 2014 vs. Third Quarter 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		3.4	%		3.5	%		4.8	%		2.9	%
Boston		8.3	%		5.5	%		5.4	%		3.9	%		6.1	%
Chicago		6.4	%		4.7	%		4.7	%		12.8	%		(1.4	%)
Long Island		9.0	%		3.7	%		4.3	%		2.9	%		5.3	%
Northern New Jersey		9.0	%		2.9	%		3.4	%		10.9	%		(0.4	%)
Philadelphia		12.3	%		2.7	%		2.6	%		3.7	%		2.0	%
Southeast Florida		2.1	%		8.1	%		8.3	%		5.7	%		10.5	%
Washington, D.C.		26.7	%		2.0	%		1.5	%		5.8	%		(0.7	%)
Total Core		100.0	%		3.2	%		3.2	%		5.7	%		1.9	%
Year over Year Results
YTD 2014 vs. YTD 2013
				Base Rental			Total
Region	% Units			Revenues(1)			Revenues			Expenses			NOI
Baltimore		26.2	%		2.7	%		3.0	%		7.0	%		1.1	%
Boston		8.3	%		4.7	%		4.2	%		3.5	%		4.7	%
Chicago		6.4	%		4.1	%		4.5	%		6.9	%		2.5	%
Long Island		9.0	%		3.6	%		4.1	%		4.4	%		3.9	%
Northern New Jersey		9.0	%		3.1	%		3.5	%		8.5	%		0.7	%
Philadelphia		12.3	%		1.9	%		2.0	%		5.0	%		0.2	%
Southeast Florida		2.1	%		7.2	%		7.8	%		6.1	%		9.3	%
Washington, D.C.		26.7	%		1.1	%		1.2	%		4.5	%		(0.6	%)
Total Core		100.0	%		2.6	%		2.8	%		5.6	%		1.2	%

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

Page 17

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	%
Long Island		1.9	%		3.6	%		2.3	%		3.8	%		2.7	%		4.0	%		1.5	%		4.2	%		2.3	%		4.0	%
Northern New Jersey		5.4	%		2.6	%		4.6	%		3.0	%		5.7	%		2.7	%		2.2	%		2.8	%		4.6	%		2.8	%
Philadelphia		(0.4	%)		2.9	%		2.4	%		3.7	%		0.0	%		4.3	%		(2.2	%)		2.9	%		0.1	%		3.6	%
Southeast Florida		4.6	%		4.3	%		7.9	%		3.6	%		5.7	%		4.0	%		5.1	%		4.0	%		6.0	%		3.9	%
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						3Q '14
Region	New			Renewal			New			Renewal			New			Renewal
Baltimore		0.3	%		3.3	%		3.4	%		3.7	%		2.1	%		3.9	%
Boston		0.4	%		3.0	%		5.3	%		3.8	%		5.8	%		4.1	%
Chicago		2.3	%		3.4	%		4.3	%		2.9	%		2.7	%		3.9	%
Long Island		(0.4	%)		3.4	%		4.5	%		3.5	%		3.6	%		4.0	%
Northern New Jersey		2.8	%		2.1	%		4.4	%		2.0	%		4.9	%		2.4	%
Philadelphia		(2.0	%)		2.4	%		2.7	%		3.4	%		3.5	%		3.8	%
Southeast Florida		6.9	%		4.2	%		9.4	%		3.9	%		9.7	%		4.6	%
Washington, D.C.		(2.3	%)		2.7	%		(0.1	%)		3.0	%		(0.2	%)		3.1	%
Total Core		(0.2	%)		2.9	%		3.0	%		3.2	%		2.5	%		3.6	%

Page 18

Resident Statistics
Top Six Reasons for Moveouts
	3Q '14			2Q '14			1Q '14			4Q '13			3Q '13			2Q '13			1Q '13			Year '13			Year '12			Year '11
Location, apartment size		15.1	%		14.5	%		14.0	%		12.2	%		13.9	%		13.4	%		12.3	%		13.1	%		12.6	%		13.1	%
Employment related		13.1	%		14.8	%		13.9	%		13.1	%		12.9	%		13.6	%		14.7	%		13.5	%		13.2	%		13.4	%
Home purchase		12.2	%		10.8	%		10.6	%		13.3	%		12.7	%		12.5	%		11.2	%		12.5	%		11.3	%		10.4	%
Transfer within HME		11.9	%		11.2	%		15.4	%		16.1	%		12.1	%		11.9	%		14.1	%		13.4	%		13.1	%		11.6	%
Eviction, skip		11.7	%		12.1	%		14.6	%		13.4	%		10.9	%		13.3	%		14.9	%		12.9	%		14.2	%		16.4	%
Domestic Situation		11.3	%		11.1	%		8.2	%		8.1	%		10.9	%		12.2	%		8.2	%		10.1	%		10.2	%		9.6	%
Traffic - Core Properties													Turnover - Core Properties
							Signed			Signed
	Traffic			Traffic			Leases			Leases
	3Q '14			YTD '14			3Q '14			YTD '14
	vs.			vs.			vs.			vs.
Region	3Q '13			YTD '13			3Q '13			YTD '13			3Q '14			3Q '13			YTD '14			YTD '13
Baltimore		(9.4	%)		(8.5	%)		7.7	%		5.8	%		12.4	%		13.1	%		31.4	%		31.4	%
Boston		(11.0	%)		(9.9	%)		(8.2	%)		0.8	%		12.6	%		12.8	%		32.9	%		33.8	%
Chicago		(4.7	%)		(5.1	%)		2.9	%		(3.6	%)		15.2	%		15.5	%		35.0	%		39.4	%
Long Island		(8.4	%)		(8.8	%)		3.6	%		2.5	%		10.0	%		10.4	%		25.2	%		26.8	%
Northern New Jersey		20.8	%		4.2	%		32.8	%		8.4	%		10.4	%		10.5	%		28.1	%		27.9	%
Philadelphia		(18.5	%)		(7.7	%)		(12.9	%)		1.1	%		12.8	%		15.5	%		35.2	%		37.4	%
Southeast Florida		2.7	%		(2.9	%)		(11.2	%)		1.0	%		12.7	%		12.3	%		36.1	%		32.1	%
Washington, D.C.		(6.4	%)		(5.8	%)		(2.7	%)		2.0	%		11.4	%		12.5	%		28.5	%		30.0	%
Total Core		(7.1	%)		(6.5	%)		1.1	%		2.9	%		12.0	%		12.9	%		30.7	%		31.7	%
Bad Debt as % of Rent and Utility Recovery
	3Q '14			3Q '13			YTD '14			YTD '13
Total Core		1.00	%		1.12	%		0.90	%		0.94	%

Page 19

Net Operating Income Detail
($ in thousands, except per unit data)
Core Properties
							Qtr			%									YTD			%
	3Q '14			3Q '13			Variance			Variance			YTD '14			YTD '13			Variance			Variance
Rent	$	150,900		$	146,170		$	4,730			3.2	%	$	447,965		$	436,609		$	11,356			2.6	%
Utility recovery		5,063			4,772			291			6.1	%		18,832			17,205			1,627			9.5	%
Rent including recoveries		155,963			150,942			5,021			3.3	%		466,797			453,814			12,983			2.9	%
Other income		7,198			7,144			54			0.8	%		21,497			21,209			288			1.4	%
Total income		163,161			158,086			5,075			3.2	%		488,294			475,023			13,271			2.8	%
Operating & maintenance		(59,014	)		(55,846	)		(3,168	)		(5.7	%)		(180,895	)		(171,365	)		(9,530	)		(5.6	%)
Core Properties NOI	$	104,147		$	102,240		$	1,907			1.9	%	$	307,399		$	303,658		$	3,741			1.2	%
Physical Occupancy		95.3	%		94.9	%		0.4	%					95.2	%		95.4	%		(0.2	%)
Weighted Avg Rent per Unit	$	1,340		$	1,306		$	34			2.6	%	$	1,325		$	1,290		$	35			2.7	%

Acquired Properties (1)							Redevelopment Property (2)
	3Q '14			YTD '14				3Q '14			YTD '14
Rent	$	3,442		$	6,719		Rent	$	3,303		$	9,770
Utility recovery		39			44		Utility recovery		107			359
Rent including recoveries		3,481			6,763		Rent including recoveries		3,410			10,129
Other income		125			226		Other income		133			376
Total income		3,606			6,989		Total income		3,543			10,505
Operating & maintenance		(1,362	)		(2,749	)	Operating & maintenance		(1,214	)		(3,761	)
Acquired Properties NOI	$	2,244		$	4,240		Redevelopment Property NOI	$	2,329		$	6,744
Physical Occupancy		94.9	%		94.3	%	Physical Occupancy		79.5	%		79.4	%
Weighted Avg Rent per Unit	$	1,182		$	1,185		Weighted Avg Rent per Unit	$	1,654		$	1,633

Development Properties (3)
	3Q '14			YTD '14
Rent	$	890		$	1,456
Utility recovery		8			13
Rent including recoveries		898			1,469
Other income		81			137
Total income		979			1,606
Operating & maintenance		(655	)		(1,601	)
Development Properties NOI	$	324		$	5
Physical Occupancy	(see development pipeline schedule)
Weighted Avg Rent per Unit	$	1,954		$	2,016

(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 25.3%.  This will adjust for the typical seasonal variability in NOI for each quarter.

Page 20

Operating Expense Detail - Core Properties
($ in thousands)
					Qtr			%							YTD			%
	3Q '14		3Q '13		Variance			Variance			YTD '14		YTD '13		Variance			Variance
Electricity	$	2,046	$	2,186	$	(140	)		(6.4	%)	$	6,198	$	6,014	$	184			3.1	%
Gas		1,249		1,239		10			0.8	%		10,585		9,773		812			8.3	%
Water & sewer		5,040		4,828		212			4.4	%		14,050		13,767		283			2.1	%
Repairs & maintenance		10,002		8,475		1,527			18.0	%		25,684		23,599		2,085			8.8	%
Personnel expense		12,823		13,128		(305	)		(2.3	%)		40,878		40,471		407			1.0	%
Advertising		1,353		1,311		42			3.2	%		3,829		3,741		88			2.4	%
Legal & professional		348		389		(41	)		(10.5	%)		939		1,087		(148	)		(13.6	%)
Office & telephone		1,730		1,673		57			3.4	%		5,113		4,847		266			5.5	%
Property insurance		2,208		2,412		(204	)		(8.5	%)		6,898		4,852		2,046			42.2	%
Real estate taxes		17,280		15,303		1,977			12.9	%		49,475		46,882		2,593			5.5	%
Snow		22		1		21			2100.0	%		2,021		910		1,111			122.1	%
Trash		922		899		23			2.6	%		2,781		2,663		118			4.4	%
Property management G&A		3,991		4,002		(11	)		(0.3	%)		12,444		12,759		(315	)		(2.5	%)
Total Core	$	59,014	$	55,846	$	3,168			5.7	%	$	180,895	$	171,365	$	9,530			5.6	%

Page 21

Discontinued Operations(1)
($ in thousands)
The results of discontinued operations are summarized for the three and nine months ended September 30, 2014 and 2013 as follows:
	3Q '14		3Q '13		YTD '14		YTD '13
Revenues:
Rental income	$	-	$	4,512	$	2,015	$	15,869
Property other income		-		366		286		1,528
Total revenues		-		4,878		2,301		17,397
Expenses:
Operating and maintenance		-		1,795		892		6,190
Interest (2)		-		662		1,109		3,605
Depreciation and amortization		-		1,212		260		4,200
Total expenses		-		3,669		2,261		13,995
Income from discontinued operations		-		1,209		40		3,402
Gain on disposition of property		-		-		31,306		45,004
Discontinued operations	$	-	$	1,209	$	31,346	$	48,406

(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 nine months ended September 30, 2014 and $1,416 for the nine months ended September 30, 2013.

Page 22

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
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 23

Breakdown of Units
							Net								Net
							Acquired/Sold/								Acquired/Sold/
		As of		12/31/2012			Developed			As of		12/31/2013			Developed			As of		9/30/2014
Region	State	12/31/2012		% of units			in 2013			12/31/2013		% of Units			in 2014			9/30/2014		% of Units
Baltimore	MD		10,477		24.6	%		-			10,477		24.8	%		-			10,477		24.8	%
Boston	MA/ME		3,303		7.7	%		253			3,556		8.4	%		-			3,556		8.4	%
Chicago	IL		2,566		6.0	%		-			2,566		6.1	%		-			2,566		6.1	%
Long Island	NY		3,647		8.5	%		(61	)		3,586		8.5	%		-			3,586		8.5	%
Northern New Jersey	NJ		3,578		8.4	%		-			3,578		8.5	%		-			3,578		8.5	%
Philadelphia	PA		5,067		11.9	%		47			5,114		12.2	%		630			5,744		13.6	%
Southeast Florida	FL		836		2.0	%		-			836		2.0	%		-			836		2.0	%
Washington, D.C.	MD/VA		13,161		30.9	%		(704	)		12,457		29.5	%		(601	)		11,856		28.1	%
Total			42,635		100.0	%		(465	)		42,170		100.0	%		29			42,199		100.0	%

Page 24

Debt Summary Schedule
($ in thousands)
		Interest			09/30/14
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured
Westchester West - 1st	Berkeley Point Capital - Freddie Mac		6.15	%		25,709	03/01/15
Westchester West - 2nd	Berkeley Point Capital - Freddie Mac		6.64	%		7,154	03/01/15
Stratford Greens	Capital One Bank		5.75	%		28,620	07/01/15
Sayville Commons	M&T Realty - Freddie Mac		5.00	%		36,391	08/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		31,572	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		21,622	09/01/15
Charleston Place	Wells Fargo - Freddie Mac		3.77	%		18,640	09/01/15
Cypress Place Apartments	Prudential - Fannie Mae		6.56	%		9,656	11/01/15
Golf Club Apartments	Prudential - Fannie Mae		6.38	%		31,087	11/01/15
Northwood Apartments	M&T Realty - Freddie Mac		5.50	%		9,916	12/01/15
Cinnamon Run - 1st	M&T Realty - Freddie Mac		5.25	%		46,569	01/01/16
Cinnamon Run - 2nd	M&T Realty - Freddie Mac		5.55	%		4,843	01/01/16
Peppertree Farm - 1st	M&T Realty - Freddie Mac		5.25	%		71,678	01/01/16
Peppertree Farm - 2nd	M&T Realty - Freddie Mac		5.55	%		1,761	01/01/16
The Hamptons/Vinings at Hamptons	Prudential - Fannie Mae		5.57	%		47,004	02/01/16
Devonshire - 1st	Wachovia - Fannie Mae		5.60	%		34,446	04/01/16
Devonshire - 2nd	Wachovia - Fannie Mae		6.24	%		7,912	04/01/16
Mid-Island	Prudential - Fannie Mae		5.48	%		18,262	04/01/16
Owings Run 1 & 2	Prudential - Fannie Mae		5.59	%		39,571	04/01/16
The Manor East	KeyBank - Freddie Mac		3.25	%		6,677	04/01/16
Country Village	Centerline (CIII) - Fannie Mae		5.52	%		17,288	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	%		41,910	01/01/18
William Henry Apartments	PNC - Fannie Mae		4.85	%		27,027	01/01/18
Seminary Towers Apartments	Prudential - Fannie Mae		5.49	%		53,515	07/01/18
The Manor (MD)	Prudential - Fannie Mae		4.23	%		43,597	11/01/18
Bonnie Ridge - 1st	Prudential Life		6.60	%		6,668	12/15/18
Bonnie Ridge - 2nd	Prudential Life		6.16	%		16,214	12/15/18
Bonnie Ridge - 3rd	Prudential Life		6.07	%		23,296	12/15/18

Page 25

Debt Summary Schedule
($ in thousands)
		Interest			09/30/14
Property	Lender	Rate %			Balance		Maturity Date
Fixed Rate Secured
Annapolis Roads	Amerisphere - Fannie Mae		5.12	%		22,698	01/01/19
Ridgeview at Wakefield Valley	M&T Realty - Freddie Mac		5.75	%		17,208	01/01/19
The Sycamores	M&T Realty - Freddie Mac		5.71	%		20,055	01/01/19
Top Field Apartments	M&T Realty - Fannie Mae		4.84	%		15,682	01/01/19
Westwood Village	M&T Realty - Freddie Mac		5.68	%		43,933	01/01/19
The Brooke at Peachtree	Wells Fargo - Fannie Mae		5.47	%		11,609	07/01/19
Glen Manor	Prudential - Fannie Mae		5.83	%		7,508	08/01/19
Ridley Brook	Prudential - Fannie Mae		5.83	%		12,464	08/01/19
The Courts at Fair Oaks	Walker&Dunlop - Freddie CME		4.50	%		46,361	08/01/19
Southern Meadows	Red Mortgage - Fannie Mae		5.36	%		38,514	10/01/19
Elmwood Terrace	M&T Realty - Fannie Mae		5.56	%		25,329	11/01/19
Lakeview	Greystone - Fannie Mae		5.31	%		8,586	12/01/19
The Landings	Prudential - Fannie Mae		5.60	%		24,730	01/01/20
East Meadow Apartments	M&T Realty - Freddie Mac		5.40	%		13,917	05/01/20
Selford Townhomes	M&T Realty - Freddie Mac		5.40	%		8,413	05/01/20
Stone Ends Apts.	M&T Realty - Freddie Mac		5.40	%		23,698	05/01/20
Tamarron Apartments	M&T Realty - Freddie Mac		5.40	%		13,924	05/01/20
The Manor (VA)	M&T Realty - Freddie Mac		5.40	%		13,069	05/01/20
Woodmont Village	M&T Realty - Freddie Mac		5.40	%		9,430	05/01/20
Trexler Park	Greystone - Fannie Mae		4.34	%		36,198	09/01/20
Arbor Park of Alexandria	Prudential - Fannie Mae		4.35	%		91,309	11/01/20
New Orleans Park	M&T Realty - Fannie Mae		4.58	%		22,234	11/01/20
Racquet Club East	PNC - Fannie Mae		4.74	%		35,635	12/01/20
Heritage Woods Apts	Greystone - Fannie Mae		5.39	%		13,758	01/01/21
The Meadows at Marlborough	Prudential - Fannie Mae		5.50	%		20,109	01/01/21
Home Properties of Devon	M&T Realty - Fannie Mae		4.85	%		57,575	08/01/21
Pleasant View Gardens	Prudential - Fannie Mae		4.51	%		90,454	11/01/21
Wtd Avg Rate/Total Debt - Fixed Rate Secured			5.21	%	$	1,630,527

Page 26

Debt Summary Schedule
($ in thousands)
			Interest			09/30/14
Property		Lender	Rate %			Balance		Maturity Date
Variable Rate Secured
Sherry Lake		M&T Realty - Freddie Mac		2.90	%		23,867	04/01/17
Wtd Avg Rate/Total Debt - Variable Rate Secured				2.90	%	$	23,867
Wtd Avg Rate/Total Debt - Total Secured Debt				5.18	%	$	1,654,394
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	%		371,000	08/18/17
Wtd Avg Rate/Total Debt - Total Unsecured Debt				2.16	%	$	821,000
Total Combined Debt				4.18	%	$	2,475,394
% Of Portfolio - Fixed	84.0%
% Of Portfolio - Variable	16.0%
			Interest					Years To
			Rate %					Maturity
Wtd Avg - Total Fixed Rate Debt				4.72	%			3.89
Wtd Avg - Total Variable Rate Debt				1.29	%			2.86
Wtd Avg - Combined Debt				4.18	%			3.73

Page 27

Debt Summary Schedule
($ in thousands)
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
2015		5.17	%		220,365		-			-		220,365		10.47	%
2016		5.40	%		296,012		-			-		296,012		14.07	%
2017		5.78	%		157,524		2.90	%		23,867		181,391		8.62	%
2018		3.53	%		552,228		-			-		552,228		26.24	%
2019		5.14	%		319,946		-			-		319,946		15.20	%
2020		4.82	%		292,556		-			-		292,556		13.90	%
2021		4.84	%		241,896		-			-		241,896		11.50	%
TOTAL		4.72	%	$	2,080,527		2.90	%	$	23,867	$	2,104,394		100.00	%

Page 28

Debt Summary Schedule
Unencumbered Properties
Property		# Units		Region	State	Property		# Units		Region	State
Canterbury			618	Baltimore	MD	Lake Grove			368	Long Island	NY
Dunfield			312	Baltimore	MD	Yorkshire Village			40	Long Island	NY
Gateway Village			132	Baltimore	MD	Barrington Gardens			148	Northern New Jersey	NJ
Howard Crossing			1,350	Baltimore	MD	East Hill Gardens			33	Northern New Jersey	NJ
Middlebrooke			208	Baltimore	MD	Hackensack Gardens			198	Northern New Jersey	NJ
Morningside Heights			1,050	Baltimore	MD	Jacob Ford Village			270	Northern New Jersey	NJ
Saddle Brooke			468	Baltimore	MD	Oak Manor			77	Northern New Jersey	NJ
The Apts at Cambridge Court			544	Baltimore	MD	Pleasure Bay			270	Northern New Jersey	NJ
The Coves at Chesapeake			469	Baltimore	MD	Wayne Village			275	Northern New Jersey	NJ
The Greens at Columbia	*		168	Baltimore	MD	Windsor Realty			67	Northern New Jersey	NJ
Westbrooke			110	Baltimore	MD	Hill Brook Place			274	Philadelphia	PA
Gardencrest			696	Boston	MA	Home Properties of Bryn Mawr			316	Philadelphia	PA
Highland House	*		172	Boston	MA	Racquet Club South			103	Philadelphia	PA
Liberty Place			107	Boston	MA	Stone Hill			205	Philadelphia	PA
Middlesex Crossing			252	Boston	MA	The Preserve at Milltown			376	Philadelphia	PA
The Commons at Haynes Farm			302	Boston	MA	Waterview			203	Philadelphia	PA
The Heights at Marlborough			348	Boston	MA	Willowbrook	*		248	Philadelphia	PA
The Townhomes of Beverly			204	Boston	MA	1200 East West			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			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			244	Washington, D.C.	VA
Holiday Square			144	Long Island	NY	Woodway at Trinity Centre			504	Washington, D.C.	VA
						Total Number of Units:			22,035
						Total Number of Properties:			68

* Property added to unencumbered pool during Q3 '14.

Page 29

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 30

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 September 30, 2014 approximately $225 per unit was spent on recurring capital expenditures.  For the nine months ended September 30, 2014 approximately $675 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 nine months ended September 30, 2014 as follows:

For the three months ended September 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	$	-	$	-	$	355	$	9	$	355	$	9
Major building improvements		1,289		32		4,436		108		5,725		140
Roof replacements		389		10		1,127		28		1,516		38
Site improvements		706		17		6,520		159		7,226		176
Apartment upgrades		1,124		27		10,484		256		11,608		283
Appliances		1,956		48		-		-		1,956		48
Carpeting/flooring		2,619		64		1,992		49		4,611		113
HVAC/mechanicals		911		22		4,174		102		5,085		124
Miscellaneous		215		5		646		16		861		21
Total	$	9,209	$	225	$	29,734	$	727	$	38,943	$	952

(a) Calculated using the weighted average number of units owned, including 39,916 core units, 2013 acquisition units of 457, and 2014 acquisition units of 550 for the three months ended September 30, 2014.

For the nine months ended September 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	$	-	$	-	$	858	$	21	$	858	$	21
Major building improvements		3,834		94		10,778		266		14,612		360
Roof replacements		1,156		28		2,003		49		3,159		77
Site improvements		2,100		52		12,515		308		14,615		360
Apartment upgrades		4,187		103		24,695		609		28,882		712
Appliances		4,973		123		-		-		4,973		123
Carpeting/flooring		7,791		192		2,632		65		10,423		257
HVAC/mechanicals		2,708		67		10,190		251		12,898		318
Miscellaneous		639		16		1,767		44		2,406		60
Total	$	27,388	$	675	$	65,438	$	1,613	$	92,826	$	2,288

(a) Calculated using the weighted average number of units owned, including 39,916 core units, 2013 acquisition units of 457, and 2014 acquisition units of 203 for the nine months ended September 30, 2014.

Page 31

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 September 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	$	8,982	$	225	$	28,425	$	712	$	37,407	$	937
2014 Acquisition Communities		124		225		71		129		195		355
2013 Acquisition Communities		103		225		1,238		2,709		1,341		2,934
Subtotal		9,209		225		29,734		727		38,943		952
Corporate office expenditures (b)		-		-		-		-		515		-
Total	$	9,209	$	225	$	29,734	$	727	$	39,458	$	952

(a) Calculated using the weighted average number of units owned, including 39,916 core units, 2013 acquisition units of 457, and 2014 acquisition units of 550 for the three months ended September 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 nine months ended September 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	$	26,943	$	675	$	62,483	$	1,565	$	89,426	$	2,240
2014 Acquisition Communities		137		675		62		305		199		980
2013 Acquisition Communities		308		675		2,893		6,329		3,201		7,004
Sub-total		27,388		675		65,438		1,613		92,826		2,288
2014 Disposed Community		45		248		0		-		45		248
Corporate office expenditures (b)		-		-		-		-		1,593		-
Total	$	27,433	$	673	$	65,438	$	1,606	$	94,464	$	2,279

(a) Calculated using the weighted average number of units owned, including 39,916 core units, 2013 acquisition units of 457, 2014 acquisition units of 203, and 2014 disposed units of 180 for the nine months ended September 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
	9/30/2014			9/30/2013		Change
Net Operating Income	$	104,147		$	102,240		1.9	%
Less: Non-recurring Capex @ 6%		(1,706	)		-		-
Adjusted Net Operating Income	$	102,441		$	102,240		0.2	%

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 32

Development Pipeline as of September 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	$	113,000	$	298	$	111,771	4Q 11		4Q 13	4Q 14		92.6	%		64.9	%		60.9	%
Silver Spring, MD	High-Rise
Courts at Spring Mill Station (5)	Donut/Podium		385		89,000		231		66,358	2Q 12		4Q 14	1Q 15		13.2	%		11.4	%		1.8	%
Conshohocken, PA
Total								$	178,129
(1) Costs classified as Construction in Progress at September 30, 2014 are comprised of:
Eleven55 Ripley (a)				$	63,346
Courts at Spring Mill Station					66,358
				$	129,704
(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 October 29, 2014.

(3) Represents the percentage of units that have been leased as of October 29, 2014.

(4) Represents the percentage of units occupied as of October 29, 2014.

(5) Initial occupancy was expected during the third quarter of 2014.  The actual first move-ins occurred October 1, 2014.

Page 33

2014 Earnings Guidance
	Actual			Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
2014 compared to 2013
FFO per share - 2014 guidance	$	0.996		$	1.045		$	1.126		$	1.16 to $1.20		$	4.33 to $4.37
Midpoint of guidance	$	0.996		$	1.045		$	1.126		$	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	%		3.7	%		6.2	%		-0.4	%
2014 compared to 2013 based on "Operating FFO" - OFFO
OFFO per share - 2014 guidance	$	0.996		$	1.11		$	1.131		$	1.16 to $1.20		$	4.40 to $4.44
Midpoint of guidance	$	0.996		$	1.11		$	1.131		$	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 charges related to the Company's exit from new development business.
OFFO as Adjusted for Impact of Exit From New Development Business
OFFO - Midpoint of guidance	$	0.996		$	1.110		$	1.131		$	1.180		$	4.420
Severance		0.000			0.000			0.015			0.005			0.020
Reduced capitalized interest on land parcels previously
designated for development		0.000			0.000			0.009			0.009			0.018
OFFO as Adjusted for Impact of Exit From New Development Business	$	0.996		$	1.110		$	1.155		$	1.194		$	4.458

Page 34

2014 Earnings Guidance
	Actual			Actual			Actual
	First			Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Year
Core Property Assumptions:
Total revenue growth		2.8	%		2.4	%		3.2	%	3.9% to 4.3%			3.1% to 3.2%
Expense growth		8.9	%		2.0	%		5.7	%	5.0% to 5.4%			5.4% to 5.5%
NOI growth		-0.8	%		2.6	%		1.9	%	3.2% to 3.6%			1.8% to 2.0%
Core Occupancy Assumptions:
2014 physical occupancy		95.0	%		95.4	%		95.3	%		95.2	%		95.2	%
2013 physical occupancy		95.5	%		95.8	%		94.9	%		94.8	%		95.2	%
Change in occupancy		-0.5	%		-0.4	%		0.4	%		0.4	%		0.0	%
Acquisition range for the year is $225 million to $250 million.
Disposition range for the year is $250 million to $275 million

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