1. 1 2007 A Look at the Washington Metro Area Apartment Market January 26, 2011

2. 2 APARTMENT VACANCY RATES SELECT METRO AREAS YEAR-END 2010 Vacancy Rate (All Apartment Classes) Note: Mid-Year 2010 data except for Washington, Baltimore, and Philadelphia which are as of Year-End 2010. Source: MPF, Delta Associates; January 2011.

3. 3 CLASS A & B APARTMENT ANNUAL NET ABSORPTION SELECT METRO AREAS 12 MONTHS ENDING DECEMBER 2010 Apartment Units 12,529 Note: Mid-Year 2010 data except for Washington. Source: MPF, Delta Associates; January 2011.

4. 4 CLASS A & B APARTMENT ANNUAL NET ABSORPTION WASHINGTON METRO AREA 2007 – 2010 Apartment Units Long Term Average Absorption= 5,339 12 months ending 2008 2009 2010 2007 Source: Delta Associates; January 2011. Class A Class B

5. 5 RISE IN RENTER HOUSEHOLDS WASHINGTON METRO AREA % of Total Households U.S. change = 130 Basis Point Increase Washington Metro change = 450 Basis Point Increase Source: Census Bureau, Delta Associates; January 2011.

6. 6 Number of projects in initial lease-up 28 28 17 19 30 46 37 31 ABSORPTION PACE PER PROJECT PER MONTH WASHINGTON METRO AREA 2003 – 2010 Units per Month Source: Delta Associates; January 2011.

7. 7 ANNUAL RENT GROWTH CLASS A APARTMENTS WASHINGTON METRO AREA 2005 – 2010 Effective Rent Growth 2005 2006 2007 2008 2009 2010* 2010* Washington Metro U.S. 1/ Long Term Average Rent Growth = 5.1% 1/ Preliminary Est. 7.8% 2.0% Source: Delta Associates; January 2011. Growth in Face Rent

8. 8 CONCESSIONS FOR PROPERTIES IN LEASE-UP WASHINGTON METRO AREA 2003 –2010 Concession as a Percentage of Face Rent Source: Delta Associates; January 2011.

9. 9 36 MONTH DEVELOPMENT PIPELINE WASHINGTON METRO AREA 2000 – 2010 Market Rate Units Planned & U/C Total: 36,291 Total: 16,606Total: 23,880 Source: Delta Associates; January 2011.

10. 10 APARTMENT CONSTRUCTION STARTS WASHINGTON METRO AREA 2008 – 2010 Apartment Units 2008 2009 Average Quarterly Starts Since 2000: 1,900 2010 Source: Delta Associates; January 2011.

11. 11 PROJECTED APARTMENT DEMAND & DELIVERIES WASHINGTON METRO AREA 36 MONTHS ENDING DECEMBER 2013 Deliveries Demand Total = 23,880 units Delivered and leasing: 3,671 units Planned and may deliver by 12/2013: 13,735 units = 6,000/Yr. = 18,000 District Sub. MD No. VA Estimated Stabilized Vacancy Rate at 12/2013: 4.1% Region-Wide 5.0% 4.2% 3.9% = = Class A Market Rate Units in Thousands U/C and not yet leasing: 6,474 units = Source: Delta Associates; January 2011.

12. 12 Percent Effective Rent Growth CLASS A APARTMENT RENT GROWTH PER YEAR WASHINGTON METRO AREA 2000 – 2014 Long-Term Average = 5.1% Source: Delta Associates; January 2011.

13. 13 Source: Delta Associates, January 2011. CLASS B APARTMENT RENTAL AND VACANCY RATES WASHINGTON METRO AREA 2001 – 2010 Stabilized Vacancy Rate Average Effective Base Rent

14. 14 Vacancy Rate Source: Delta Associates, January 2011. CLASS B APARTMENT VACANCY RATES WASHINGTON METRO AREA 2003 – 2010

15. 15 Source: Delta Associates, January 2011. CLASS B APARTMENT ANNUAL RENT GROWTH WASHINGTON METRO AREA 2009 vs. 2010 Percent Effective Rent Growth

16. 16 2007 A Look at the Washington Metro Area Apartment Market January 26, 2011