3ACQUISITIONS

Property Acquisitions

During the three months ended March 31, 2015, the Company acquired the communities listed below (the “2015 Acquisition Communities”):

Cost of

Date

Year

Number

Cost of

Acquisition

Apartment Community

Region

Acquired

Constructed

of Units

Acquisition

Per Unit

Park Grove

Chicago

1/07/2015

1978/1984

710

92,000

130

Sutton Pointe

Northern New Jersey

2/19/2015

1963

241

31,000

129

951

123,000

During 2014, the Company acquired the communities listed below (the “2014 Acquisition Communities”):

									Cost of
		Date	Year	Number		Cost of			Acquisition
Apartment Community	Region	Acquired	Constructed	of Units		Acquisition			Per Unit
The Preserve at Milltown	Philadelphia	6/19/2014	1975		376		$	45,000		$	120
Willowbrook	Philadelphia	7/30/2014	1972		248		30,500			123
The Lakes of Schaumburg	Chicago	11/12/2014	1987		428		66,000			154
					1,052		$	141,500

All of the 2015 and 2014 Acquisition Communities were recorded at fair value which approximated actual purchase price. None of the acquisitions were subject to bargain purchase options or resulted in goodwill being recorded. In connection with these acquisitions, closing costs of $377 were incurred and are included in other expenses for the three months ended March 31, 2015.

The Company accounts for its acquisitions of investments in real estate in accordance with the authoritative guidance for business combinations and recorded the purchase price to acquired tangible assets consisting of land, building, and personal property and identified intangible assets and liabilities, consisting of the value of above-market and below-market leases, value of in-place leases and value of resident relationships, based in each case on their fair values.

The following table summarizes the Company’s aggregate purchase price allocation for the 2015 and 2014 Acquisition Communities:

	2015			2014
Land	$	18,478		$	20,810
Buildings, improvements and equipment	104,084			120,027
Fair market value adjustment for loan and liabilities assumed	40			1,969
Below-market leases	(117		)	(161		)
In-place lease intangibles	334			471
Customer relationships	221			353
Net assets acquired	$	123,040		$	143,469

Included in the consolidated statements of operations for the three months ended March 31, 2015 are total revenues of $6,397 and net income attributable to common shareholders of $1,529 since the respective date of acquisition through March 31, 2015 for the 2015 Acquisition Communities and January 1, 2015 through March 31, 2015 for the 2014 Acquisition Communities. As the 2014 Acquisition Communities were purchased subsequent to March 31, 2014, there is no revenue or net income included in the consolidated statements of operations for these communities.

Pro Forma Information

The following unaudited pro forma information was prepared as if the 2015 and 2014 Acquisition Communities were acquired as of January 1 of the preceding year. The pro forma financial information is based upon the historical consolidated financial statements of the Company and the acquired communities, and is not necessarily indicative of the consolidated results which actually would have occurred if the transactions had been consummated at January 1 of the preceding year, nor does it purport to represent the results of operations for future periods. Adjustments to the pro forma financial information are based on assumptions and estimates considered appropriate by management and consist principally of providing net operating activity and recording interest, depreciation and amortization. Acquisition related costs in the amount of $377 were excluded from the 2015 pro forma net income attributable to common stockholders. An adjustment was made to include these costs in the 2014 pro forma net income attributable to common stockholders.

	Three Months Ended March 31,
	2015		2014
Pro forma total revenues	$	177,257	$	171,935
Pro forma net income attributable to common stockholders	57,810		46,487
Pro forma earnings per common share:
Basic	$	1.00	$	0.81
Diluted	0.99		0.81