Page 1Home PropertiesNovember 13-15, 2012

REITWorld 2012®: NAREIT's Annual Convention for All Things REIT®

1

November 13-15, 2012

This presentation was created as of the specific date indicated and reflects management views as of that date. Such information may include certain forward-looking statements that are subject to risks and uncertainties that may cause results to differ materially and are described in our filings with the

Forward-looking Statements

Securities and Exchange Commission. The presentation may include statements that may not be accurate after the date indicated. The Company disclaims any duty to update such information.

Any reference to guidance relates to guidance previously provided publicly by the Company, which it typically updates on a quarterly basis. Nothing in this presentation should be construed as confirmation of any guidance previously given. Any third party information and/or analyst estimates are provided for informational purposes only. By policy, Home Properties does not

22

provided for informational purposes only. By policy, Home Properties does not endorse analysts' projections. Non-GAAP financial measures in this presentation are reconciled to the most directly comparable financial measures calculated in accordance with GAAP in the Company’s public filings, news releases and supplemental information for the specific fiscal period, all of which are available on the Home Properties Web site at www.homeproperties.com.

Page 2Home PropertiesNovember 13-15, 2012

• Apartment UPREIT• Solid East Coast geographic footprint

Introduction to Home Properties

• High barrier-to-entry, high growth markets in close-in suburbs of major metropolitan areas

• Unique niche upgrading individual units on turn and repositioningClass C/B- properties

• Commitment to customer service results in lower turnover, higher occupancy and rent growth

• Target moderate-income residents

33

g• Limited new development on entitled land• 43,489 apartments owned in 124 properties as of 11/1/2012• An S&P 400 company

Greater % Units in High Barrier Markets

29

2425

302000 2011

55%

2000 %

7

17

12

1717

14

6 610

15

20

High Barrier

2011

44

0

56 6

0

5

D.C. Balt. NYC'Burbs

Phil. Boston Chicago

97% High

Barrier

Page 3Home PropertiesNovember 13-15, 2012

Owned Communities

2012 Core PropertiesRegional OfficesRecent Acquisitions

124 communitieswith 41,951 units

55

As of 12/31/2011

2011Region # of Units % NOI

Suburban Washington, D.C. 12,230 31%

Market Breakdown

gBaltimore, MD 9,984 23%Suburban New York City 7,225 21%Philadelphia, PA 5,806 12%Boston, MA 3,304 8%Chicago, IL 2,566 4%North Lauderdale, FL 836 1%

Total Units 41 951 100%

66

Total Units 41,951 100%

As of 12/31/2011

Page 4Home PropertiesNovember 13-15, 2012

HME's Portfolio is Class "B/C"

95.4% of units are Class "B/C"

77

Class B/CClass A - 2.5% developed by HMEClass A - 2.1% acquired

,240

1

95.2 94.0 94.8 95.8 94.6 95.0 95.2 94.1 92.5 93.0 93.8 94.3 94.7 94.8 95.0 94.9 95.2 95.5 95.5

1,300

1,400

90

100

High Occupancy and Increasing Rent

%$

7 61 701 77

6 843 88

8 948 1,

000 1,

073

1,10

1

1,13

5

1,13

7

1,13

0 1

1,17

700

800

900

1,000

1,100

1,200

20

30

40

50

60

70

80

88

550

559 58

3 600 62

7 6

500

600

700

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 3Q2012

0

10

20

Average Rent Per Unit ($) Occupancy (% )

Core properties

Page 5Home PropertiesNovember 13-15, 2012

44 0 45 0 45 2 46.0 46.6 48.0 49.3 49.6 50.055.0 56.4

60.0

50

60

Resident Turnover

%

32.0

44.0 45.0 45.2 46.0

20

30

40

99

0

10

HME AVB ESS AIV AEC UDR CPT PPS Average EQR BRE MAA CLP

Average excluding HMESource: Keefe Bruyette & Woods, Company 1Q 2012 transcripts and supplements

9.18.4

7.7 7 6 7 38

9

10

2011 Same-Store NOI Growth

%

7.6 7.3 7.16.4

5.6 5.6 5.5 5.34.9

4.3

2

3

4

5

6

7

8

1010

0

1

2

PPS AVB EQR HME CLP CPT Average AEC UDR ESS AIV MAA BRE

Average excluding HMESource: Company reports

Page 6Home PropertiesNovember 13-15, 2012

112114116118

112114116118 2012 HME – 118%

Same-Store NOI Cumulative Relative Growth2009-2012

HME

AECEQR

% %

9698100102104106108110112

9698

100102104106108110112 AEC

MAAUDRUDR

AIV

AVBCPT

CLPESS

BRE

PPS

2012 Apt. REIT Avg. – 107%

1111

88909294

88909294

12/31/2008 12/31/2009 12/31/2010 12/31/2011 12/31/2012(1) Midpoint of Company forecasts, Company reports 3Q 2012Average excluding HME

(1)

3.8

3 0

3.5

4.0

Highest 10-Year Same-Store NOI Growth

1.3%

%

2.2

1.61.4 1.3 1.3 1.3

1.1 1.1 1.10.9

0.60.5

1.0

1.5

2.0

2.5

3.0

2.5%ANOI

1212

-0.3-0.5

0.0

HME UDR MAA ESS AEC CLP EQR Average AIV BRE AVB CPT PPSAdjusted NOI (ANOI) reflects a charge for cost of debt capital on incremental investments in properties (reflected in yellow) above

and beyond normal cap ex.Average annual growth 2001-2011, excluding HMESource: Green Street Advisors 9/14/2012

Page 7Home PropertiesNovember 13-15, 2012

HME Avg. 3.1%

Higher Same-Store NOI Growth During Full Cycle

%

3 6

8.8

7.8

7.6

6 8 3 36.4

7.9

6.06

8

10

Apt. REIT Avg. 0.8%

3.6

-5.1-6.4

-0.2

1.7

2.2

-1.1

6.85.0 1.7

3.3

0.0

3.3

-2.1

3.1

-4.7

-8

-6

-4

-2

0

2

4

1313

Average excluding HMESource: Company reports

6.4-82002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9 mos.

2012

Home Properties Apartment REITs

3.4 3.4

2.0 1.72

4

Solid Long-Term FFO Growth2000-2011

%

-0.4-1.2 -1.2 -1.4

-6.5

-0.5

-6

-4

-2

0

1414

-9.1-10

-8

MAA ESS AVB HME EQR Average UDR CPT BRE PPS AIV

Historical core FFO compounded annual growth rateSource: Zelman & Associates 9/7/2012

Page 8Home PropertiesNovember 13-15, 2012

Strong Capital Structure

Equity 57%Common Stock (83%)Operating Partnership Interests (17%)

Debt 43%Fixed (85%)Floating (15%)

Common Stock

Fixed Rate Debt

1515

Operating Partnership Interests

Floating Rate Debt

15$61.27 per share as of 9/30/2012

$6.7 BILLION TOTAL MARKET CAPITALIZATION

596

500

600

Well-Managed Debt Maturities

$ in millions

190

98

257 266311

333310 293

200

300

400346

1616

6

98

0

100

2012 2013 2014 2015 2016 2017 2018 2019 2020 Thereafter

Bank term facility reflected in yellowAs of 9/30/2012

Page 9Home PropertiesNovember 13-15, 2012

2012$ in millions 2009 2010 2011 Projection

Total Debt / Total Value* 58 1% 53 9% 46 9% 44 0%

Stronger Key Debt and Credit Metrics

Total Debt / Total Value 58.1% 53.9% 46.9% 44.0%Total Secured Debt / Total Value* 53.1% 49.8% 39.7% 35.0%Net Debt / EBITDA 8.6x 9.4x 8.2x 7.2xInterest Coverage Ratio 2.2x 2.3x 2.5x 3.0xFixed Charge Coverage Ratio 2.1x 2.1x 2.4x 2.9xValue of Unencumbered Asset Pool* $790 $964 $1,895 $2,350% of Total Value of

1717

% of Total Value ofUnencumbered Pool* 20.0% 21.7% 33.3% 38.0%

*Based on conservative LOC covenant values

Consistent Financial and Dividend Performance

90.786.2

82.574.7

70 9 73.5 76.281.1

85.1 87.7 88.883.7 80.6 78.6

83.274.8

70 15.00

6.00

80

100Dividend per Share FFO per Share Payout Ratio$ %

6 31 .41 .45

2.49

2.53 2.57

2.61

2.65

2.68

32 2.48 2.

64

2.45 2.

78 2.94 3.03

2.97

2.88

2.84 2.85 3.

07 3.24 3.37

3.22

3.10

3.54

4.07

70.9 3 5 70.164.9

2 00

3.00

4.00

20

40

60

1818

1.66

1.69 1.74 1.83 1.

97 2.1 6 2.

3 2. 2 2 2 2

2.3 2

1.83 1.96 2.

11 2

1.00

2.00

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

20

(1) Excludes impairment and other unusual non-recurring charges(2) Midpoint of FFO per share guidance(3) AFFO payout ratio approximately 12% higher for 2012

(1)(1) (1) (1)(1) (1) (2)(3)

Page 10Home PropertiesNovember 13-15, 2012

4.3

4

5

Superior Dividend Yield

%

3.2

2.1

1

2

3

4

1919

0

1

Home Properties Apartment Average S&P 500 Average

(1) Source: Citi weighted average 11/1/2012HME stock price $61.76

(1)

4.94.35

6

Five-Year Compound Annual Total Return

%

0

1

2

3

4

2020

-0.3

-1.4-2

-1

Home Properties Apartment REITs S&P 500 Index All Equity REITs

As of 12/31/2011Source: NAREIT

Page 11Home PropertiesNovember 13-15, 2012

Key Market Factors

3 8

5.9

8.17.4

4.8

7.1

9.79.1

8.3

6.9

6.08.0

10.012.0

1.0

-1 2

0.70.9 0.81.3

0.8

-1.0

0.0

1.0

2.0% Job Growth (Year-over-Year) Unemployment Rate (1)

%

3.8

0.02.04.0

2007 2008 2009 2010 2011

1.2

-2.1 -2.1

-3.6-4.0

-3.0

-2.0

2007 2008 2009 2010 2011

$318k $336k $317k $306k$334k

$173k $179k $172k $171k $173k$200k

$300k

$400k 35 35 35

29 29

22 22 2217 1820

30

40%

Median Home Value Multifamily Units as a % of Total Housing Stock

2121

$173k $179k $172k $171k $173k

$0k

$100k

$200k

2007 2008 2009 2010 2011

17 18

0

10

20

2007 2008 2009 2010 2011

Source: Bureau of Labor Statistics; Claritas, Inc.(1) Unemployment rate in December of the year shown

HME Markets U.S. Average

• High barrier-to-entry, high growth, close-in suburban markets of major MSAs

• East Coast focus: Boston to Mid Atlantic

Acquisition Strategy

• East Coast focus: Boston to Mid-Atlantic• High average home prices• Favorable supply/demand equation• Positive demographic trends: immigrants, echo boomers, seniors• UPREIT transactions• Additional development potential• Acquire Class C and B properties with solid construction floor plans and

2222

• Acquire Class C and B- properties with solid construction, floor plans and upgradeable to Class B and B+

• 2011 record $501M

Page 12Home PropertiesNovember 13-15, 2012

5017.3%6.7% 6.7% 6.8%

6 1%500

Acquisitions Cap Rate

Active Acquirer

$ in millions

93

248283

360

162

100

339298

6.0% 5.9% 6.1% 5.9%5.5%

100

200

300

400

2323

00

100

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

• Match asset sales with acquisitions to optimize capital sources• 2012’s seven asset sales = 13.3% weighted average unlevered IRR

Disposition Strategy

• Sell less efficient properties – location, potential, size• Reinvest in higher growth, higher barrier target markets• Review portfolio quarterly to maximize value with a buy/sell/hold decision

process

2424

Page 13Home PropertiesNovember 13-15, 2012

2,164 1,957 1,8031,406

1 000

2,000

3,000

Net Acquisitions Over the Last Decade

$ in millions

130

-1,578-2,504

-3,744

-22

-5,000

-4,000

-3,000

-2,000

-1,000

0

1,000

2525

-6,753-7,000

-6,000

MAA HME ESS CPT UDR BRE PPS AVB EQR AIV

Apartment REIT cumulative transaction activity 2000-2Q 2012Source: Zelman & Associates 9/7/2012

• New landscaping, signage for curb appeal• Correct deferred maintenance• Improve exteriors, apartment and common area interiors

Repositioning Strategy

• Interior renovations on turnover:– Upgrade kitchens– Upgrade baths– Replace appliances, floors, cabinets, counters– Remove kitchen walls– Replace tile work, tubs, fixtures– Replace windows, doors– Add washers dryers

2626

Add washers, dryers• Add community centers• Property repositioning takes 5 to 7 years• Target a minimum 10% initial unlevered yield on revenue-enhancing

interior renovations

Page 14Home PropertiesNovember 13-15, 2012

Repositioning – Curb Appeal

Before

2727

After

Repositioning – Landscaping

Before

2828

After

Page 15Home PropertiesNovember 13-15, 2012

Repositioning – Parking Lots

Before

2929

After

Repositioning – Community Rooms

Before

3030

After

Page 16Home PropertiesNovember 13-15, 2012

Repositioning – Amenities

Before

3131

After

Repositioning – Laundry Room

Before

3232

After

Page 17Home PropertiesNovember 13-15, 2012

Repositioning – Facade

Before

3333

After

Repositioning – Kitchen

Before

3434

After

Page 18Home PropertiesNovember 13-15, 2012

Repositioning – Kitchen

Before

After

During

3535

Repositioning – Bathroom

Before

3636

After

Page 19Home PropertiesNovember 13-15, 2012

1,727

1 600

1,700

1,800

Typical Impact of Property Repositioning

t$

1,000

1,113

1,284

1,478

1,100

1,200

1,300

1,400

1,500

1,600

Mon

thly

Apa

rtmen

t Ren

3737

943

900

1,000

C- C C+ B- B B+Apartment Quality

M

1 300

1,400

1,500

Sustainable Revenue Differential on Upgraded Units

Renovated vs. Unrenovated RentBraddock Lee Apartments, Alexandria, VA

t

$

800

900

1,000

1,100

1,200

1,300

Mon

thly

Apa

rtmen

t Ren

3838

700

800

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Renovated Unrenovated

M

Page 20Home PropertiesNovember 13-15, 2012

Property Age # Units % Not Upgraded20+ years 36,942 32%

Large Inventory for Value Add Upgrades

10-20 years 3,264 68%<10 years 1,745 0%

Total 41,951 38%

3939

As of 12/31/2011

• Modest complement to Class C/B repositioning strategy• Focus on Mid-Atlantic Region

Development Strategy

• Low-risk approach with limited pre-construction investment– Emphasis on transit-oriented developments close to shopping,

entertainment, education and employers– Density/adjacent opportunities on existing properties– Acquisition of entitled land– No high rise construction beyond identified pipeline

• Target yield of 150 basis points over similar Class A property cap rate in individual submarket

4040

individual submarket• Deliver 400 units or up to $100 million per year

Page 21Home PropertiesNovember 13-15, 2012

The Apartments at Cobblestone Square

Location Fredericksburg, VARegion Washington, D.C. Units 314Start Date 1Q 2011Initial Occupancy 4Q 2011Completion 2Q 2012Total Cost $49MCost Per Unit $156K11/1/2012 Leased 98.4%

4141

Location Silver Spring, MDRegion Washington, D.C.Units 379Start Date 4Q 2011

Eleven55 Ripley

Initial Occupancy 3Q 2013Completion 1Q 2014Total Cost $111MCost Per Unit $293K

4242

Page 22Home PropertiesNovember 13-15, 2012

Location Conshohocken, PARegion PhiladelphiaUnits 385Start Date 2Q 2012

Courts at Spring Mill Station

Initial Occupancy 1Q 2014Completion 2H 2014Total Cost $89MCost Per Unit $231K

4343

3 4 3.5 3.6 4.0 3.8 4.0

5.15.7

96.5

456

Core Property Quarterly Price Changes

Occupancy%

Price Increase%

1.62.3

3.4

-0.2

2.3

1.0

2.51.8

3.44.3 4.2

1.9

95.0

95.5

96.0

-2-101234

4444

-4.294.51Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 3Q 2012

-5-4-3

Physical Occupancy Renewal Increases New Lease vs. Old Lease

Page 23Home PropertiesNovember 13-15, 2012

7.27.0 7.0

6 36 5

7.0

7.5

Return on Invested Capital

%

6.3 6.2 6.2 6.1 6.1 6.1 6.05.7

5.2 5.2

4.0

4.5

5.0

5.5

6.0

6.5

4545

3.0

3.5

ESS HME MAA CPT AVB EQR Average AIV BRE AEC PPS CLP UDRRecurring EBITDA before the effect of partnership income and capitalized interest, as a percent of average assets before depreciation and partnership incomeAverage excluding HMESource: KeyBanc Capital Markets, "The Leaderboard," 11/2/2012

• Unique proven business strategy: acquiring and upgrading Class C/B apartment properties

• Excellent geographic markets: 97% of units located in high barrier markets

HME Investment Considerations

• Excellent geographic markets: 97% of units located in high barrier markets with growth opportunity along the East Coast

• Positive demographic trends: immigrants, echo boomers, seniors• Strong, flexible capital structure with ample liquidity• 12% average annual total return over the last 10 years• Well-positioned for future earnings growth

4646