SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

12 Months Ended

Dec. 31, 2012

SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION

SCHEDULE III

HOME PROPERTIES, INC.

REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2012

(Dollars in thousands)

					UPREIT		Initial Cost		UPREIT		Costs				Total Cost						Total Cost,
					Unit		Buildings,		Unit		Capitalized				Buildings,						Net of		Year of
	Encum-				Alloc.		Improvements		Alloc.		Subsequent to				Improvements				Accumulated		Accumulated		Acquisition or
Community	brances		Land		Land(a)		& Equipment		Bldg.(a)		Acquisition		Land		& Equipment		Total(b)		Depreciation		Depreciation		Completion
1200 East West	$	—	$	13,068	$	—	$	—	$	—	$	71,530	$	13,068	$	71,530	$	84,598	$	5,541	$	79,057	2010	(c)
Annapolis Roads	23,345		14,400		—		18,035		—		6,191		14,400		24,226		38,626		1,966		36,660		2010
Arbor Park of Alexandria	94,345		8,528		429		58,912		4,286		46,589		8,957		109,787		118,744		34,550		84,194		2000
Barrington Gardens	10,597		888		35		6,658		296		6,342		923		13,296		14,219		3,685		10,534		2005
Bayview/Colonial	—		1,600		71		8,471		709		5,650		1,671		14,830		16,501		5,669		10,832		2000
Blackhawk	—		2,968		83		14,568		858		8,408		3,051		23,834		26,885		8,882		18,003		2000
Bonnie Ridge	49,975		4,830		411		42,769		4,147		36,723		5,241		83,639		88,880		34,975		53,905		1999
Braddock Lee	—		3,810		152		8,842		1,488		8,733		3,962		19,063		23,025		8,590		14,435		1998
Cambridge Village	—		2,460		54		3,188		520		2,624		2,514		6,332		8,846		2,246		6,600		2002
Canterbury	41,538		4,944		235		21,384		2,353		15,470		5,179		39,207		44,386		14,543		29,843		1999
Castle Club	—		948		57		8,933		566		6,856		1,005		16,355		17,360		6,024		11,336		2000
Charleston Place	73,633		22,764		—		84,648		—		8,389		22,764		93,037		115,801		6,166		109,635		2010
Chatham Hill	43,164		1,848		286		46,150		2,434		15,467		2,134		64,051		66,185		16,038		50,147		2004
Cider Mill	60,134		15,552		464		65,939		4,549		17,144		16,016		87,632		103,648		26,034		77,614		2002
Cinnamon Run	53,284		7,731		231		59,693		1,934		8,852		7,962		70,479		78,441		14,192		64,249		2005
Country Village	17,975		2,236		113		11,149		1,120		11,793		2,349		24,062		26,411		10,551		15,860		1998
Courts at Huntington Station	—		33,409		53		—		—		88,431		33,462		88,431		121,893		5,665		116,228		2011	(c)
Courtyards Village	—		3,360		—		9,824		525		5,591		3,360		15,940		19,300		5,363		13,937		2001
Crescent Club	—		2,338		—		28,792		—		4,966		2,338		33,758		36,096		2,257		33,839		2010
Cypress Place	9,927		2,304		45		7,861		479		5,959		2,349		14,299		16,648		5,308		11,340		2000
Devonshire Hills	73,745		27,415		574		66,716		5,726		25,929		27,989		98,371		126,360		29,131		97,229		2001
Dunfield	11,003		1,683		—		30,302		—		7,368		1,683		37,670		39,353		5,927		33,426		2007
East Hill Gardens	—		231		24		1,560		241		1,567		255		3,368		3,623		1,439		2,184		1998
East Meadow	14,336		2,250		89		10,803		863		4,328		2,339		15,994		18,333		5,182		13,151		2000
Elmwood Terrace	26,052		6,048		155		14,680		1,561		13,161		6,203		29,402		35,605		10,794		24,811		2000
Falkland Chase	34,601		9,000		327		49,753		3,008		7,274		9,327		60,035		69,362		15,091		54,271		2003
Fox Hall	47,000		9,959		—		51,874		—		16,283		9,959		68,157		78,116		12,079		66,037		2007
Gardencrest	—		24,674		507		61,526		4,974		27,733		25,181		94,233		119,414		29,228		90,186		2002
Gateway Village	—		1,320		71		6,621		695		3,739		1,391		11,055		12,446		4,117		8,329		1999
Glen Manor	7,716		1,044		44		4,565		440		4,241		1,088		9,246		10,334		3,794		6,540		1997
Golf Club	31,984		3,990		187		21,298		1,840		17,368		4,177		40,506		44,683		15,384		29,299		2000
Hackensack Gardens	8,275		2,376		50		10,900		423		6,862		2,426		18,185		20,611		4,732		15,879		2005
Hawthorne Court	32,971		8,940		260		23,446		2,521		22,330		9,200		48,297		57,497		15,633		41,864		2002
Heritage Square	—		2,000		58		4,805		566		3,057		2,058		8,428		10,486		2,722		7,764		2002
Heritage Woods	14,131		1,602		—		12,420		—		4,124		1,602		16,544		18,146		3,337		14,809		2006
Highland House	5,548		3,414		—		14,761		—		3,008		3,414		17,769		21,183		3,423		17,760		2006
Hill Brook Place	12,288		2,192		85		9,118		848		10,105		2,277		20,071		22,348		7,224		15,124		1999
Holiday Square	—		3,575		77		6,108		722		2,840		3,652		9,670		13,322		2,850		10,472		2002

			UPREIT	Initial Cost	UPREIT	Costs		Total Cost			Total Cost,
			Unit	Buildings,	Unit	Capitalized		Buildings,			Net of	Year of
	Encum-		Alloc.	Improvements	Alloc.	Subsequent to		Improvements		Accumulated	Accumulated	Acquisition or
Community	brances	Land	Land(a)	& Equipment	Bldg.(a)	Acquisition	Land	& Equipment	Total(b)	Depreciation	Depreciation	Completion
Home Properties of Bryn Mawr	22,785	3,160	154	17,956	1,537	17,415	3,314	36,908	40,222	12,878	27,344	2000
Home Properties of Devon	59,236	6,280	332	35,643	3,280	35,981	6,612	74,904	81,516	27,270	54,246	2000
Howard Crossing	—	46,044	—	138,871	—	2,510	46,044	141,381	187,425	2,255	185,170	2012
Hunters Glen	—	2,239	—	4,729	—	1,037	2,239	5,766	8,005	326	7,679	2011
Jacob Ford Village	—	6,750	—	20,022	—	8,807	6,750	28,829	35,579	5,538	30,041	2007
Lake Grove	—	7,360	254	11,952	2,557	19,216	7,614	33,725	41,339	15,283	26,056	1997
Lakeview	8,841	636	59	4,552	590	4,621	695	9,763	10,458	4,031	6,427	1998
Lakeview Townhomes	—	1,118	—	13,335	—	2,288	1,118	15,623	16,741	1,080	15,661	2010
Liberty Commons	—	1,330	15	—	125	13,459	1,345	13,584	14,929	4,719	10,210	2005	(c)
Liberty Place	—	2,033	—	13,125	—	2,994	2,033	16,119	18,152	3,137	15,015	2006
Mid-Island Estates	18,850	4,160	128	6,567	1,268	7,577	4,288	15,412	19,700	7,096	12,604	1997
Middlebrooke	—	2,888	—	14,369	—	3,175	2,888	17,544	20,432	1,514	18,918	2010
Mill Towne Village	24,239	3,840	154	13,279	1,486	14,135	3,994	28,900	32,894	10,757	22,137	2001
Morningside Heights	—	6,147	406	28,699	4,000	35,833	6,553	68,532	75,085	29,427	45,658	1998
Mount Vernon Square	—	55,810	—	86,946	—	20,971	55,810	107,917	163,727	20,007	143,720	2006
New Orleans Park	22,943	2,920	124	13,215	1,227	14,541	3,044	28,983	32,027	12,088	19,939	1997
Newport Village	—	56,501	—	147,420	—	5,508	56,501	152,928	209,429	5,202	204,227	2011
Northwood	10,219	804	71	14,299	602	4,704	875	19,605	20,480	4,841	15,639	2004
Oak Manor	8,093	616	70	4,111	690	3,834	686	8,635	9,321	3,661	5,660	1998
Owings Run	40,823	5,533	255	32,622	2,538	10,217	5,788	45,377	51,165	16,313	34,852	1999
Park Shirlington	26,151	4,410	157	10,180	1,581	9,211	4,567	20,972	25,539	10,044	15,495	1998
Peppertree Farm	76,123	12,571	317	83,804	2,654	21,165	12,888	107,623	120,511	22,819	97,692	2005
Pleasant View	93,376	5,710	499	47,816	5,021	33,413	6,209	86,250	92,459	34,441	58,018	1998
Pleasure Bay	—	1,620	124	6,234	1,210	11,465	1,744	18,909	20,653	7,284	13,369	1998
Racquet Club East	36,732	1,868	218	23,107	2,137	16,109	2,086	41,353	43,439	15,398	28,041	1998
Racquet Club South	—	309	35	3,891	353	3,223	344	7,467	7,811	3,067	4,744	1999
Redbank Village	17,743	2,000	164	14,030	1,686	13,789	2,164	29,505	31,669	11,549	20,120	1998
Ridgeview at Wakefield Valley	17,749	2,300	72	17,247	635	4,855	2,372	22,737	25,109	5,713	19,396	2005
Ridley Brook	12,808	1,952	74	7,719	748	7,018	2,026	15,485	17,511	5,694	11,817	1999
Royal Gardens	47,000	5,500	258	14,067	2,603	19,103	5,758	35,773	41,531	16,035	25,496	1997
Saddle Brooke	29,441	7,609	—	44,040	—	8,892	7,609	52,932	60,541	6,593	53,948	2008
Sayville Commons	38,045	8,005	187	55,346	1,599	2,701	8,192	59,646	67,838	11,578	56,260	2005
Selford	8,667	1,224	57	4,200	565	3,462	1,281	8,227	9,508	3,283	6,225	1999
Seminary Hill	—	2,960	135	10,194	1,344	10,535	3,095	22,073	25,168	9,154	16,014	1999
Seminary Towers	53,515	5,480	292	19,348	2,868	23,040	5,772	45,256	51,028	17,719	33,309	1999
Sherry Lake	24,932	2,428	165	15,620	1,617	12,591	2,593	29,828	32,421	12,008	20,413	1998
Somerset Park	—	7,253	—	12,937	—	204	7,253	13,141	20,394	449	19,945	2011
South Bay Manor	6,572	1,098	45	1,958	440	5,265	1,143	7,663	8,806	3,096	5,710	2000
Southern Meadows	39,661	9,040	343	31,875	3,397	11,634	9,383	46,906	56,289	15,238	41,051	2001
Stone Ends	24,412	5,600	166	28,468	1,554	6,623	5,766	36,645	42,411	9,708	32,703	2003
Tamarron	14,344	1,320	92	8,474	896	4,331	1,412	13,701	15,113	4,803	10,310	1999
The Apts at Cambridge Court	—	7,378	—	82,641	—	2,219	7,378	84,860	92,238	3,249	88,989	2011
The Apts at Cobblestone Square	—	12,127	—	—	—	36,564	12,127	36,564	48,691	829	47,862	2012	(c)
The Apts at Wellington Trace	22,937	3,060	167	26,305	1,418	1,275	3,227	28,998	32,225	6,775	25,450	2004
The Brooke at Peachtree Village	11,976	992	51	15,137	437	4,714	1,043	20,288	21,331	4,280	17,051	2005
The Colony	—	7,830	197	34,121	2,025	16,220	8,027	52,366	60,393	19,584	40,809	1999

					UPREIT		Initial Cost		UPREIT		Costs				Total Cost						Total Cost,
					Unit		Buildings,		Unit		Capitalized				Buildings,						Net of		Year of
	Encum-				Alloc.		Improvements		Alloc.		Subsequent to				Improvements				Accumulated		Accumulated		Acquisition or
Community	brances		Land		Land(a)		& Equipment		Bldg.(a)		Acquisition		Land		& Equipment		Total(b)		Depreciation		Depreciation		Completion
The Commons at Haynes Farm	—		7,550		—		32,771		—		3,532		7,550		36,303		43,853		1,602		42,251		2011
The Courts at Dulles	—		15,413		—		76,946		—		1,437		15,413		78,383		93,796		2,401		91,395		2011
The Courts at Fair Oaks	48,164		12,377		—		61,107		—		2,563		12,377		63,670		76,047		4,031		72,016		2010
The Coves at Chesapeake	—		8,915		—		57,974		—		10,793		8,915		68,767		77,682		12,441		65,241		2006
The Gates of Deer Grove	—		1,247		—		18,973		—		682		1,247		19,655		20,902		579		20,323		2011
The Greens at Columbia	9,270		5,040		—		20,886		—		2,257		5,040		23,143		28,183		1,641		26,542		2010
The Hamptons	48,910		5,749		303		50,489		2,599		15,278		6,052		68,366		74,418		17,321		57,097		2004
The Heights at Marlborough	22,636		6,253		—		44,268		—		9,082		6,253		53,350		59,603		9,251		50,352		2006
The Landings	25,468		2,459		162		16,753		1,595		13,803		2,621		32,151		34,772		13,511		21,261		1996
The Manor - MD	45,078		8,700		257		27,703		2,513		12,860		8,957		43,076		52,033		14,542		37,491		2001
The Manor - VA	13,463		1,386		85		5,738		832		6,713		1,471		13,283		14,754		5,662		9,092		1999
The Manor East	7,136		5,330		—		11,407		—		748		5,330		12,155		17,485		234		17,251		2012
The Meadows at Marlborough	20,643		6,598		—		28,736		—		6,215		6,598		34,951		41,549		6,169		35,380		2006
The New Colonies	—		1,680		151		21,350		1,545		14,279		1,831		37,174		39,005		16,488		22,517		1998
The Sycamores	20,690		4,625		136		15,737		1,283		3,865		4,761		20,885		25,646		5,990		19,656		2002
The Townhomes of Beverly	—		5,820		—		30,465		—		5,826		5,820		36,291		42,111		6,214		35,897		2007
The Village at Marshfield	—		3,113		134		28,354		1,158		7,739		3,247		37,251		40,498		8,718		31,780		2004
Top Field	16,153		1,635		—		16,684		—		4,737		1,635		21,421		23,056		4,014		19,042		2006
Trexler Park	37,417		2,490		114		13,841		1,129		9,657		2,604		24,627		27,231		8,981		18,250		2000
Trexler Park West	—		2,684		—		—		—		23,460		2,684		23,460		26,144		7,736		18,408		2006	(c)
Village at Potomac Falls	—		7,380		—		30,960		—		1,914		7,380		32,874		40,254		2,232		38,022		2010
Village Square	39,285		2,590		191		13,306		1,900		11,280		2,781		26,486		29,267		9,760		19,507		1999
Vinings at Hampton Village	—		1,772		77		12,148		657		4,541		1,849		17,346		19,195		4,553		14,642		2004
Virginia Village	28,279		5,160		207		21,918		2,027		15,932		5,367		39,877		45,244		13,123		32,121		2001
Waterview	—		1,531		—		23,030		—		3,596		1,531		26,626		28,157		1,178		26,979		2011
Wayne Village	25,038		1,849		177		12,895		1,744		9,828		2,026		24,467		26,493		10,083		16,410		1998
West Springfield	25,228		2,440		194		31,766		1,845		5,446		2,634		39,057		41,691		10,557		31,134		2002
Westbrooke	—		1,103		—		5,229		—		1,635		1,103		6,864		7,967		649		7,318		2010
Westchester West	33,508		6,978		—		41,513		—		4,597		6,978		46,110		53,088		5,547		47,541		2008
Westwood Village	45,329		7,260		270		22,757		2,629		12,945		7,530		38,331		45,861		12,432		33,429		2002
Westwoods	—		1,260		—		2,694		—		700		1,260		3,394		4,654		604		4,050		2007
William Henry	27,838		4,666		187		22,277		1,839		17,539		4,853		41,655		46,508		14,531		31,977		2000
Windsor Realty	—		402		34		3,300		337		2,639		436		6,276		6,712		2,710		4,002		1998
Woodleaf	—		2,862		122		17,720		1,028		3,326		2,984		22,074		25,058		5,818		19,240		2004
Woodmont Village	9,714		2,880		63		5,699		622		3,405		2,943		9,726		12,669		3,117		9,552		2002
Woodway at Trinity Centre	—		17,136		—		78,253		—		1,182		17,136		79,435		96,571		1,394		95,177		2012
Yorkshire Village	—		1,200		27		2,016		260		1,551		1,227		3,827		5,054		1,249		3,805		2002
Other Assets (d)	—		604		—		—		—		114,443		604		114,443		115,047		23,632		91,415		Various
	$	2,165,027	$	777,649	$	13,955	$	3,075,206	$	134,922	$	1,453,494	$	791,604	$	4,663,622	$	5,455,226	$	1,108,840	$	4,346,386

(a) In 2008 and prior periods, authoritative guidance required the exchange of noncontrolling interests(UPREIT Units) for shares to be   recorded under the purchase method with the difference between the fair value and book value of an exchanged UPREIT Unit allocated to real estate.

(b) The aggregate cost for federal income tax purposes was approximately $4,972,195.

(c) Property was constructed by the Company and completed in the year indicated.

(d) Includes construction in progress of $83,241 and corporate office assets of $31,202.

SCHEDULE III

HOME PROPERTIES, INC.

REAL ESTATE AND ACCUMULATED DEPRECIATION

DECEMBER 31, 2012

(Dollars in thousands)

Depreciation and amortization of the Company’s investments in real estate assets reflected in the consolidated statements of operations are calculated over the estimated useful lives of the assets as follows:

Land improvements	3-20 years
Buildings and improvements	3-40 years
Furniture, fixtures and equipment	5-10 years
Computer software	5 years

The changes in total real estate assets are as follows:

	2012			2011			2010
Balance, beginning of year	$	5,042,324		$	4,377,730		$	3,915,979
New property acquisitions	297,650			511,308			346,770
Additions	226,348			160,109			146,645
Disposals associated with deconsolidation of the VIE (1)	—			—			(27,464		)
Disposals and retirements	(111,096		)	(6,823		)	(4,200		)
Balance, end of year	$	5,455,226		$	5,042,324		$	4,377,730

The changes in accumulated depreciation are as follows:

	2012			2011			2010
Balance, beginning of year	$	983,759		$	841,801		$	733,142
Depreciation	166,339			143,093			126,249
Disposals associated with deconsolidation of the VIE (1)	—			—			(13,627		)
Disposals and retirements	(41,258		)	(1,135		)	(3,963		)
Balance, end of year	$	1,108,840		$	983,759		$	841,801

(1) Refer to Note 4 for discussion of the Company’s sale of its general partnership interest in the VIE and the resulting deconsolidation of the VIE.