Strategy pays off for Home Properties.

Home Properties released financial results for the first quarter ending March 31, 2004. All results are reported on a diluted basis.

"Home Properties' results in the first quarter of 2004 were very positive in an operating environment that is still challenging, but appears to be improving," said Edward J. Pettinella, President and CEO.

"During the first quarter we were successful in acquiring $140 million of apartment communities in key markets. Occupancy improved and same-property revenues increased for the fourth quarter in a row.

"Home Properties again should rank very high in the apartment REIT sector based on per share growth in both net operating income and funds from operations.

"We continue to believe these results reflect the soundness of our repositioning business strategy and solid geographic markets."

Earnings per share ("EPS") for the quarter ended March 31, 2004 was $0.14 per share, equal to the $0.14 per share for the prior-year quarter.

For the quarter ended March 31, 2004, Funds From Operations ("FFO") was $30.6 million, or $0.62 per share, as compared to $28.4 million, or $0.60 per share, for the quarter ended March 31, 2003.

These results equate to an 8.0% increase in total FFO from the comparable prior-year period, or a 2.9% increase on a per-share basis.

Home Properties declared a regular dividend on the Company's common shares of $0.62 per share for the quarter ended March 31, 2004.

The dividend is payable on May 28, 2004 to shareholders of record on May 17, 2004 and is equivalent to an annualized rate of $2.48 per share.

The current dividend represents a 6.7 percent yield based on yesterday's closing price of $37.25. Home Properties' common stock will begin trading ex-dividend on May 13, 2004.

Pettinella said, "Acquiring properties in our existing markets has become much more competitive with many more buyers interested in a finite number of deals.

"To accelerate earnings growth, Home Properties anticipates entering a new geographic market, Southeast Florida, which we believe is an excellent market with similar characteristics to our existing markets and is a market in which our strategy of upgrading and repositioning mature garden apartment communities will be equally as successful."

The Company also declared a regular dividend of $0.5625 per share on its Series F Cumulative Redeemable Preferred Stock for the quarter ending May 31, 2004.

The dividend on the preferred shares is payable on June 1, 2004 to shareholders of record on May 17, 2004. This dividend is equivalent to an annualized rate of $2.25 per share. Home Properties' Series F Preferred Stock will begin trading ex-dividend on May 13, 2004.