<PAGE>   1

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                  -------------

                                    FORM 10-Q

           [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

               For the quarterly period ended September 30, 1997

                                       or

           [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

               For the transition period from __________ to ____________.

                         Commission file number 0-22411

                                  -------------

                       SUMMIT PROPERTIES PARTNERSHIP, L.P.
             (Exact name of registrant as specified in its charter)


          Delaware                                       56-1857809
  (State or other jurisdiction                        (I.R.S. Employer
of incorporation or organization)                    Identification No.)

         212 S. Tryon Street, Suite 500, Charlotte, North Carolina 28281
               (Address of principal executive offices - zip code)

                                 (704) 334-9905
              (Registrant's telephone number, including area code)

                                       N/A
              (Former name, former address and former fiscal year,
                         if changed since last report)

Indicate by check whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

Yes  X         No
    ---           ---

<PAGE>   2




                       SUMMIT PROPERTIES PARTNERSHIP, L.P.

                                      INDEX

PART I           FINANCIAL INFORMATION                                     PAGE

         Item 1  Financial Statements

                 Balance Sheets as of  September 30, 1997
                     and December 31, 1996 (Unaudited). . . . . . . . . . .   3

                 Statements of Earnings for the three and
                     nine months ended September 30, 1997 and 1996
                     (Unaudited). . . . . . . . . . . . . . . . . . . . . .   4

                 Statement of Partners' Equity (Unaudited) .  . . . . . . .   5

                 Statements of Cash Flows for the nine
                     months ended September 30, 1997 and 1996
                     (Unaudited). . . . . . . . . . . . . . . . . . . . . .   6

                 Notes to Financial Statements. . . . . . . . . . . . . . .   7

         Item 2  Management's Discussion and Analysis of Financial
                     Condition and Results of Operations . . . . . . . . . . 11

PART II          OTHER INFORMATION

         Item 2  Changes in Securities. . . . . . . . . . . . . . . . . . .  29

         Item 6  Exhibits Index and Reports on Form 8-K . . . . . . . . . .  29

         SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30


                                       2
<PAGE>   3


PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

SUMMIT PROPERTIES PARTNERSHIP, L.P.
BALANCE SHEETS
(Dollars in Thousands)
(UNAUDITED)


<TABLE>
<CAPTION>
                                                           September 30,   December 31,
                                                               1997           1996
                                                           -------------   ------------
<S>                                                        <C>             <C>      
ASSETS
Real estate assets:
  Land and land improvements                               $ 120,811       $ 102,605
  Buildings and improvements                                 576,932         472,996
  Furniture, fixtures and equipment                           49,405          43,021
                                                           ---------       ---------
                                                             747,148         618,622
  Less: accumulated depreciation                             (99,789)        (85,651)
                                                           ---------       ---------
        Operating real estate assets                         647,359         532,971
  Construction in progress                                   118,108          86,157
                                                           ---------       ---------
        Net real estate assets                               765,467         619,128

Cash and cash equivalents                                      3,930           3,665

Restricted cash                                                5,115           4,121

Deferred financing costs, net                                  7,294           4,675

Other assets                                                   4,823           3,775
                                                           ---------       ---------
Total assets                                               $ 786,629       $ 635,364
                                                           =========       =========

LIABILITIES AND PARTNERS' EQUITY
Liabilities:
  Notes payable                                            $ 438,094       $ 309,933
  Accrued interest payable                                     2,597           1,318
  Accounts payable and accrued expenses                       17,641           7,257
  Distributions payable to unitholders                        10,867          10,244
  Security deposits and prepaid rents                          3,605           3,196
                                                           ---------       ---------
        Total liabilities                                    472,804         331,948
                                                           ---------       ---------

Commitments

Partners' equity
  Partnership units issued and outstanding 27,339,016
    and 26,415,977
    General partner - outstanding 273,390 and 264,159          3,869           3,766
    Limited partners - outstanding 27,065,626 and
      26,151,818                                             309,956         299,650
                                                           ---------       ---------
        Total partners' equity                               313,825         303,416
                                                           ---------       ---------
Total liabilities and partners' equity                     $ 786,629       $ 635,364
                                                           =========       =========
</TABLE>



See notes to financial statements.

                                      3

<PAGE>   4


SUMMIT PROPERTIES PARTNERSHIP, L.P.
STATEMENTS OF EARNINGS
(Dollars In Thousands Except For Per Unit Data)
(Unaudited)

<TABLE>
<CAPTION>
                                                    Three Months Ended                      Nine Months Ended
                                                       September 30,                           September 30,       
                                              -------------------------------       -------------------------------
                                                  1997               1996               1997              1996
                                              ------------       ------------       ------------       ------------
<S>                                           <C>                <C>                <C>                <C>         
Revenues:
  Rental                                      $     28,240       $     23,143       $     80,348       $     65,097
  Other property income                              1,660              1,293              4,558              3,461
  Interest                                              97                240                305                395
  Other income                                          71                 95                209                310
                                              ------------       ------------       ------------       ------------
        Total revenues                              30,068             24,771             85,420             69,263
                                              ------------       ------------       ------------       ------------

Expenses:
  Property operating and maintenance:
    Personnel                                        2,427              2,191              6,899              6,315
    Advertising and promotion                          596                434              1,418              1,015
    Utilities                                        1,312              1,056              3,623              3,036
    Building repairs and maintenance                 2,326              2,022              6,382              5,456
    Real estate taxes and insurance                  2,573              2,258              8,111              6,744
    Depreciation                                     5,852              4,682             16,463             13,249
    Property supervision                               701                576              2,041              1,632
    Other operating expenses                           797                690              2,356              1,943
                                              ------------       ------------       ------------       ------------
                                                    16,584             13,909             47,293             39,390
  Interest                                           5,790              4,292             15,382             13,346
  General and administrative                           857                764              2,099              2,045
  Loss (income) in equity investments:
    Summit Management Company                         (111)                66                (86)               161
    Real estate joint venture                         --                 --                 --                   (1)
                                              ------------       ------------       ------------       ------------
        Total expenses                              23,120             19,031             64,688             54,941
                                              ------------       ------------       ------------       ------------

Income before gain on sale of real
  estate assets and extraordinary items              6,948              5,740             20,732             14,322
Gain on sale of real estate assets                    --                 --                4,366               --
                                              ------------       ------------       ------------       ------------
Income before extraordinary items                    6,948              5,740             25,098             14,322
Extraordinary items                                   --                 (626)              --                 (626)
                                              ------------       ------------       ------------       ------------
Net income                                           6,948              5,114             25,098             13,696
Net income allocated to general partner                (70)               (51)              (251)              (137)
                                              ------------       ------------       ------------       ------------
Net income allocated to limited partners      $      6,878       $      5,063       $     24,847       $     13,559
                                              ============       ============       ============       ============


Per unit data:
  Income before extraordinary items           $       0.25       $       0.24       $       0.92       $       0.66
                                              ============       ============       ============       ============
  Net income                                  $       0.25       $       0.21       $       0.92       $       0.63
                                              ============       ============       ============       ============
  Distributions declared                      $       0.40       $       0.39       $       1.19       $       1.16
                                              ============       ============       ============       ============
  Weighted average units                        27,369,316         24,070,632         27,252,718         21,769,807
                                              ============       ============       ============       ============
</TABLE>

See notes to financial statements.

                                      4

<PAGE>   5


SUMMIT PROPERTIES PARTNERSHIP, L.P.
STATEMENT OF PARTNERS' EQUITY
(Dollars In Thousands)
(Unaudited)


<TABLE>
<CAPTION>
                                                           General        Limited
                                                           Partner        Partners         Total
                                                           -------       ----------      ---------
<S>                                                        <C>           <C>             <C>      
Balance, December 31, 1996                                 $ 3,766       $ 299,650       $ 303,416
   Distributions                                              (326)        (32,306)        (32,632)
   Contributions from Summit Properties related to:
     Issuance of stock                                         117          11,629          11,746
     Exercise of stock options                                   7             731             738
     Amortization of restricted stock grants                     3             268             271
     Proceeds from Dividend Reinvestment
       and Employee Stock Purchase Plans                        17           1,743           1,760
   Costs of shelf registrations                                 (5)           (506)           (511)
   Issuance of units related to property acquisitions           39           3,900           3,939
   Net income                                                  251          24,847          25,098
                                                           -------       ---------       ---------
Balance, September 30, 1997                                $ 3,869       $ 309,956       $ 313,825
                                                           =======       =========       =========
</TABLE>


See notes to financial statements.


                                      5
<PAGE>   6


SUMMIT PROPERTIES PARTNERSHIP, L.P.
STATEMENTS OF CASH FLOWS
(Dollars In Thousands)
(Unaudited)


<TABLE>
<CAPTION>
                                                                             Nine Months Ended
                                                                               September 30,
                                                                         -------------------------
                                                                            1997            1996
                                                                         ---------       ---------
<S>                                                                      <C>             <C>      
Cash flows from operating activities:
  Net income                                                             $  25,098       $  13,696
  Adjustments to reconcile net income to net cash
    provided by operating activities:
    Extraordinary items                                                       --               626
    Gain (loss)  on equity method investments                                  (86)            160
    Gain on sale of real estate assets                                      (4,366)           --
    Depreciation and amortization                                           17,336          13,994
    Increase in restricted cash                                               (994)           (610)
    Increase  in other assets                                                 (699)         (1,747)
    Increase (decrease) in accrued interest payable                          1,262             (82)
    Increase in accounts payable and accrued expenses                        4,484           4,114
    Increase (decrease) in security deposits and prepaid rents                (104)            557
                                                                         ---------       ---------
                Net cash provided by operating activities                   41,931          30,708
                                                                         ---------       ---------
Cash flows from investing activities:
  Construction of real estate assets, net of payables                      (68,980)        (54,259)
  Purchase of Communities                                                  (57,749)         (6,360)
  Proceeds from sale of Community                                            9,271            --
  Capitalized interest                                                      (4,528)         (2,884)
  Recurring capital expenditures                                            (2,589)         (1,805)
  Non-recurring capital expenditures                                        (3,317)         (2,329)
                                                                         ---------       ---------
                Net cash used in investing activities                     (127,892)        (67,637)
                                                                         ---------       ---------
Cash flows from financing activities:
  Debt proceeds, net of underwriters discount, offering
    and related costs                                                      226,920          80,775
  Debt repayments                                                         (117,358)       (103,751)
  Distributions to unitholders                                             (32,104)        (23,761)
  Payments of financing costs                                                  (32)           (148)
  Contributions from Summit Properties related to:
    Issuance of common stock, net of underwriters discount,
      offering and related costs                                             6,813          97,619
    Exercise of stock options                                                  738             224
    Proceeds from Dividend Reinvestment and Employee Stock
      Purchase Plans                                                         1,760           1,262
  Shelf registrations costs                                                   (511)           --
                                                                         ---------       ---------
                Net cash provided by financing activities                   86,226          52,220
                                                                         ---------       ---------
Net increase in cash and cash equivalents                                      265          15,291
Cash and cash equivalents, beginning of period                               3,665           2,881
                                                                         ---------       ---------
Cash and cash equivalents, end of period                                 $   3,930       $  18,172
                                                                         =========       =========

Supplemental disclosure of cash flow
  information - Cash paid for interest, net of capitalized interest      $  13,359       $  12,643
                                                                         =========       =========
</TABLE>


See notes to financial statements.


                                      6
<PAGE>   7


SUMMIT PROPERTIES PARTNERSHIP, L.P.

NOTES TO FINANCIAL STATEMENTS

1.       BASIS OF PRESENTATION

         The accompanying unaudited financial statements have been prepared by
         the management of Summit Properties Partnership, L.P., (the "Operating
         Partnership") in accordance with generally accepted accounting
         principles for interim financial information and in conformity with the
         rules and regulations of the Securities and Exchange Commission.
         Accordingly, they do not include all of the information and footnotes
         required by generally accepted accounting principles for complete
         financial statements. In the opinion of management, all adjustments
         (consisting only of normal recurring adjustments) considered necessary
         for a fair presentation have been included. The results of operations
         for the nine months ended September 30, 1997 are not necessarily
         indicative of the results that may be expected for the full year. These
         financial statements should be read in conjunction with the Operating
         Partnership's December 31, 1996 audited financial statements and notes
         thereto included in the Operating Partnership's Registration Statement
         on Form 10, as amended.

         The Operating Partnership conducts the business of developing,
         acquiring and managing multi-family apartment communities for Summit
         Properties Inc. ("Summit Properties"). Summit Properties is the sole
         general partner and majority owner of the Operating Partnership. Summit
         Properties is a self-administered and self-managed equity real estate
         investment trust ("REIT").

         The Financial Accounting Standards Board has issued Statement of
         Financial Accounting Standard No. 128 (SFAS No. 128), "Earnings Per
         Share," which will be effective for periods ending after December 15,
         1997. SFAS No. 128 will change the method for calculating earnings per
         Unit. Had the Operating Partnership applied SFAS No. 128 for the three
         and nine months ended September 30, 1997, the effect on reported
         earnings per Unit would not be significant.

2.       ACQUISITIONS AND DISPOSITIONS

         During 1997, the Operating Partnership completed the acquisition of
         four Communities: Summit Mayfaire, Summit Portofino, Summit Sand Lake
         and Summit Windsor II. The acquisitions added a total of 1,188
         apartment homes to the Operating Partnership's portfolio at an
         aggregate purchase price of $82.9 million. The acquisitions were
         primarily financed with the assumption of $15.2 million in debt, the
         issuance of 243,608 Units to Summit Properties in exchange for Summit
         Properties issuing 243,608 shares of Common Stock to the seller, the
         issuance of 194,495 Units directly to the seller, and payment of $57.7
         million in cash.

         In addition, the Operating Partnership acquired its joint venture
         partner's interest in Summit Plantation (formerly Plantation Cove)
         apartment community on April 1, 1996. The Operating Partnership paid
         $6.4 million in cash for the remaining 75% interest in this joint
         venture, which is now owned entirely by the Operating Partnership.

                                       7
<PAGE>   8



         The following summary of selected unaudited pro forma results of
         operations presents information as if the communities acquired in 1997
         and the Summit Plantation acquisition had occurred at the beginning of
         each period presented. The pro forma information for the nine months
         ended September 30, 1997 and 1996 is provided for informational
         purposes only and is not indicative of results that would have occurred
         or which may occur in the future (dollars in thousands, except per unit
         amounts):

<TABLE>
<CAPTION>
                                                                    Nine Months Ended
                                                                      September 30,
                                                               ---------------------------
                                                                   1997            1996
                                                               ----------      -----------
         <S>                                                   <C>             <C>        
         Net revenues                                          $   87,356      $    78,131
                                                               ==========      ===========

         Income before gain on sale of real estate assets      $   20,613      $    13,922
                                                               ==========      ===========

         Net income                                            $   24,979      $    13,922
                                                               ==========      ===========

         Net income per Unit                                   $     0.91      $      0.62
                                                               ==========      ===========


         Weighted average units                                27,386,667       22,522,939
                                                               ==========      ===========
</TABLE>

         On May 14, 1997, the Operating Partnership sold a community in
         Charlotte, North Carolina known as Summit Charleston for $9.5 million.
         A gain on the sale of $4.4 million was recognized. Proceeds from the
         sale were used to partially fund the acquisition of Summit Windsor II .

3.       SENIOR UNSECURED DEBT OFFERING

         On August 12, 1997, the Operating Partnership completed a $125 million
         senior unsecured debt offering (the Notes). The Notes consist of: $25
         million of 6.8% Notes due on August 15, 2002, $50 million of 6.95%
         Notes due on August 15, 2004 and $50 million of 7.2% Notes due on
         August 15, 2007. The Notes are redeemable at any time at the option of
         the Operating Partnership, in whole or in part, at a redemption price
         equal to the sum of the principal amount of the Notes and the
         make-whole amount, if any, based upon the available reinvestment rate.
         The Notes are not subject to any mandatory sinking fund and are
         unsecured obligations of the Operating Partnership. The related
         indenture contains various covenants including certain restrictions on
         future indebtedness, limitations on encumbered assets and maintenance
         of a minimum debt coverage ratio.

                                       8
<PAGE>   9



4.       RESTRICTED STOCK

         In the nine months ended September 30, 1997 and 1996, Summit Properties
         granted 26,528 and 56,041 shares, respectively, of restricted stock to
         employees of the Operating Partnership and subsidiaries under Summit
         Properties 1994 Stock Option and Incentive Plan. The market value of
         the restricted stock grants in 1997 and 1996 totaled $570,000 and $1.1
         million, respectively. Unearned compensation is being amortized to
         expense over the vesting period which ranges from three to five years.

5.       SUPPLEMENTAL CASH FLOW INFORMATION

         Non-cash investing and financing activities for the nine months ended
         September 30, 1997 and 1996 are as follows:

         A.       In the nine months ended September 30, 1997, the Operating
                  Partnership purchased four communities (Summit Mayfaire,
                  Summit Portofino, Summit Sand Lake and Summit Windsor II). The
                  Operating Partnership completed the purchase of the four
                  Communities by assuming debt, issuing 194,495 Units, issuing
                  243,608 Units to Summit Properties in exchange for Summit
                  Properties issuing 243,608 shares of Common Stock to the
                  seller, assuming certain liabilities and current assets, and
                  the payment of cash. The recording of the purchases is
                  summarized as follows (in thousands):

                     Fixed assets                                      $ 82,898
                     Other assets                                            30
                     Debt assumed                                       (15,226)
                     Current liabilities assumed                         (1,081)
                     Value of Operating Partnership Units issued         (3,939)
                     Value of Common Stock issued                        (4,933)
                                                                       --------
                           Cash invested                               $ 57,749
                                                                       ========

         B.       On April 1, 1996, the Operating Partnership acquired its joint
                  venture partner's interest in the Summit Plantation (formerly
                  Plantation Cove) apartment community. The Operating
                  Partnership paid $6.4 million in cash for the remaining 75%
                  interest in this joint venture, which is now owned entirely by
                  the Operating Partnership. The recording of the purchase is
                  summarized as follows (in thousands):

                     Fixed assets                                      $ 21,913
                     Current assets                                         202
                     Deferred charges                                        95
                     Debt assumed                                       (14,347)
                     Current liabilities assumed                           (288)
                     Equity investment                                   (1,215)
                                                                       --------
                     Net cash paid                                     $  6,360
                                                                       ========

         C.       The Operating Partnership issued 106,330 Units, (valued at
                  $2.1 million) for the purchase of land during the nine months
                  ended September 30, 1996.


                                       9
<PAGE>   10

         D.       The Operating Partnership accrued a distribution payable in
                  the amount of $10.9 million and $10.2 million at September 30,
                  1997 and 1996, respectively.

         E.       Summit Properties issued 26,528 and 56,041 shares,
                  respectively, of restricted stock valued at $570,000 and $1.1
                  million during the nine months ended September 30, 1997 and
                  1996, respectively, to employees of the Operating Partnership
                  and subsidiaries.



                                       10
<PAGE>   11


ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
        CONDITION AND RESULTS OF OPERATIONS

This Form 10-Q contains forward-looking statements including, without
limitation, statements relating to the operating performance of stabilized
communities and development activities of the Operating Partnership within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934, as amended. Although the Operating Partnership
believes that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, the Operating Partnership's actual results and
performance of stabilized and development communities could differ materially
from those set forth in the forward-looking statements. Certain factors that
might cause such a difference include general economic conditions, local real
estate market conditions, construction delays due to unavailability of
materials, weather conditions or other delays and those factors discussed in the
last paragraph under the heading entitled "Operating Performance of the
Operating Partnership's Stabilized Communities" and in the section entitled
"Development Activity--Certain Factors Affecting the Performance of Development
Communities" on pages 13 and 24, respectively, of this Form 10-Q.

As of September 30, 1997, there were 27,339,016 Units outstanding of the
Operating Partnership, of which 23,306,930, or 85.3% were owned by Summit
Properties and 4,032,086, or 14.7% were owned by other partners (including
certain officers and directors of Summit Properties).

The following discussion should be read in conjunction with the Financial
Statements of Summit Properties Partnership, L.P. and the Notes thereto
appearing elsewhere herein.



                                       11
<PAGE>   12


HISTORICAL RESULTS OF OPERATIONS

The Operating Partnership's net income is generated primarily from operations of
its apartment communities (the "Communities"). The changes in operating results
from period to period reflect changes in existing Community performance and
increases in the number of apartment homes due to development and acquisition of
new Communities. Where appropriate, comparisons are made on a "stabilized
Communities," "acquisition Communities," "stabilized development Communities"
and "Communities in lease-up" basis in order to adjust for changes in the number
of apartment homes. A Community is deemed to be "stabilized" when it has
attained either a physical occupancy level of at least 93% or when construction
has been completed for one year in each of the comparable periods presented. A
Community is deemed to be a "stabilized development" when stabilized in the
entire current period presented but was in lease-up in the prior period
presented.

Results of Operations for the Three and Nine Months Ended September 30, 1997 and
1996

For the three and nine months ended September 30, 1997, income before gain on
sale of real estate assets and extraordinary items increased $1.2 million and
$6.4 million, respectively, to $6.9 million and $20.7 million, respectively,
from the three and nine months ended September 30, 1996.



                                       12
<PAGE>   13



OPERATING PERFORMANCE OF THE OPERATING PARTNERSHIP'S PORTFOLIO OF COMMUNITIES

The operating performance of the Communities for the three and nine months ended
September 30, 1997 and 1996 is summarized below (dollars in thousands):

<TABLE>
<CAPTION>
                                                     Three Months Ended                    Nine Months Ended
                                                        September 30,                         September 30,
                                             ----------------------------------  ------------------------------------
                                              1997        1996       % Change       1997        1996       % Change
                                             ----------- ---------- -----------  ----------- ----------- ------------
<S>                                          <C>         <C>        <C>           <C>        <C>         <C> 
Property revenues:
   Stabilized communities (1)                  $21,376     $21,072        1.4%      $61,115     $60,010         1.8%
   Acquisition communities (2)                   2,743           0      100.0%        8,985       1,467       512.5%
   Stabilized development communities            3,137       2,773       13.1%        9,264       5,768        60.6%
   Communities in lease-up                       2,644         233     1034.8%        5,023         255      1869.8%
   Community sold                                    0         358     -100.0%          519       1,058       -50.9%
                                               -------     -------                  -------     -------
Total property revenues                         29,900      24,436       22.4%       84,906      68,558        23.8%
                                               -------     -------                  -------     -------
Property operating and maintenance 
  expense (3):                      
   Stabilized communities                        8,080       8,083        0.0%       23,057      22,902         0.7%
   Acquisition communities                         934           0      100.0%        3,022         515       486.8%
   Stabilized development communities              933         889        4.9%        2,865       2,127        34.7%
   Communities in lease-up                         785         114      588.6%        1,675         161       940.4%
   Community sold                                    0         141     -100.0%          211         436       -51.6%
                                               -------     -------                  -------     -------
Total property operating and                  
  maintenance expense                           10,732       9,227       16.3%       30,830      26,141        17.9%
                                               -------     -------                  -------     -------
Property operating income                      $19,168     $15,209       26.0%      $54,076     $42,417        27.5%
                                               =======     =======                  =======     =======

Apartment homes, end of period                  14,734      12,140       21.4%       14,734      12,140        21.4%
                                               =======     =======                  =======     =======
</TABLE>


(1)   Includes Communities which were stabilized for each of the comparable
      periods presented. Three month results include Summit Plantation which
      was acquired April 1, 1996.

(2)   Three month results include the Communities acquired in 1997. Nine month
      results include the Communities acquired in 1997 and Summit Plantation
      acquired April 1, 1996.

(3)   Before real estate depreciation expense.

A summary of the Operating Partnership's apartment homes for the nine months
ended September 30, 1997 and 1996 is as follows:

<TABLE>
<CAPTION>
                                                  1997              1996
                                                 ------            ------
<S>                                              <C>               <C>   
Apartment homes at January 1                     12,454            11,286
Acquisitions                                      1,188               262
Developments which began rental operations 
  during the period                               1,306               592
Sale of apartment homes                            (214)             --
                                                 ------            ------
Apartment homes at September 30                  14,734            12,140
                                                 ======            ======
</TABLE>



                                       13
<PAGE>   14


OPERATING PERFORMANCE OF THE OPERATING PARTNERSHIP'S STABILIZED COMMUNITIES

The operating performance of the 45 and 44 Communities stabilized during the
entire period in each of the three and nine months ended September 30, 1997 and
1996, respectively, are summarized below (dollars in thousands except average
monthly rental revenue):

<TABLE>
<CAPTION>
                                                 Three Months Ended                   Nine Months Ended
                                                    September 30,                       September 30,
                                         -----------------------------------  -----------------------------------
                                           1997        1996      % Change       1997         1996     % Change
                                         ----------  ----------  -----------  ----------  ----------- -----------
<S>                                      <C>         <C>         <C>          <C>         <C>         <C> 
Property revenues:
   Rental                                  $20,348     $20,004         1.7%     $58,209      $57,089        2.0%
   Other                                     1,028       1,068        -3.7%       2,906        2,921       -0.5%
                                           -------     -------                  -------      -------
Total property revenues                     21,376      21,072         1.4%      61,115       60,010        1.8%
                                           -------     -------                  -------      -------
Property operating and maintenance 
  expense (1):
   Personnel                                 1,793       1,923        -6.8%       5,217        5,580       -6.5%
   Advertising and promotion                   315         254        24.0%         781          634       23.2%
   Utilities                                   982         922         6.5%       2,719        2,669        1.9%
   Building repairs and maintenance          1,886       1,886         0.0%       5,186        5,113        1.4%
   Real estate taxes and insurance           1,983       2,015        -1.6%       5,898        5,792        1.8%
   Property supervision                        530         523         1.3%       1,524        1,491        2.2%
   Other operating expense                     591         560         5.5%       1,732        1,623        6.7%
                                           -------     -------                  -------      -------
Total property operating and
  maintenance expense                        8,080       8,083         0.0%      23,057       22,902        0.7%
                                           -------     -------                  -------      -------
Property operating income                  $13,296     $12,989         2.4%     $38,058      $37,108        2.6%
                                           =======     =======                  =======      =======

Average physical occupancy (2)               93.7%       93.7%         0.0%       93.3%        93.3%        0.0%
                                           =======     =======                  =======      =======

Average monthly rental revenue (3)         $   724     $   712         1.8%     $   734      $   720        2.0%
                                           =======     =======                  =======      =======

Number of apartment homes                   10,134      10,134                    9,872        9,872
                                           =======     =======                  =======      =======
</TABLE>


(1)      Before real estate depreciation expense.

(2)      Average physical occupancy is defined as the number of apartment homes
         occupied divided by the total number of apartment homes contained in
         the Communities, expressed as a percentage. Average physical occupancy
         has been calculated using the average of the midweek occupancy that
         existed during each week of the period.

(3)      Represents the average monthly net rental revenue per occupied
         apartment home.

The increase in rental revenue from stabilized Communities for the third quarter
and the first nine months of 1997 compared to 1996 was primarily the result of
increases in average rental rates. Property operating and maintenance expenses
were stable with increases in advertising and promotion, and other operating
expense, offset by a decrease in personnel expense. As a percentage of total
property revenue, property operating and maintenance expenses decreased for the
three months ended September 30, 1996 and 1997 from 38.4% to 37.8% and for the
nine months ended September 30, 1996 and 1997 from 38.2% to 37.7%.


                                       14
<PAGE>   15

The 1.4% and 1.8% rates of growth in property revenues were lower than the 3.9%
and 4.1% rates of growth in property revenues achieved from the third quarter of
1995 compared to third quarter 1996 and the first nine months of 1995 compared
to the first nine months of 1996, respectively. The growth rate was lower
primarily as a result of a new supply of competing multi-family communities and
the increase in home affordability in some of the markets in which the Operating
Partnership operates. This lower growth rate was especially noticeable in the
Tampa and Atlanta markets. The Operating Partnership expects property growth
rates for the remainder of 1997 to be similar to the first nine months of 1997
as the supply of new multi-family communities continues to increase, balanced by
the continued strength of the local economies in which the Operating Partnership
operates. The Operating Partnership believes its expectations with respect to
property revenue growth are based on reasonable assumptions as to future
economic conditions and the quantity of competitive multi-family communities in
the markets in which the Operating Partnership does business. There can be no
assurance that actual results will not differ from these assumptions.




                                       15
<PAGE>   16


OPERATING PERFORMANCE OF THE OPERATING PARTNERSHIP'S ACQUISITION COMMUNITIES

Acquisition communities consist of Summit Mayfaire, Summit Portofino, Summit
Sand Lake and Summit Windsor II acquired in 1997 (1,188 apartment homes) and
Summit Plantation (262 apartment homes) acquired on April 1, 1996, for the nine
month periods presented and only the four Communities acquired in 1997 for the
three month periods presented. The operations of these Communities for the three
and nine months ended September 30, 1997 and 1996 are summarized as follows
(dollars in thousands except average monthly rental revenue):

<TABLE>
<CAPTION>
                                        Three Months Ended     Nine Months Ended
                                            September 30          September 30
                                        ------------------    -------------------
                                         1997      1996        1997         1996
                                        ------     ----       ------       ------
<S>                                     <C>        <C>        <C>          <C>   
Property revenues:
   Rental revenues                      $2,539      $ 0       $8,404       $1,391
   Other property revenue                  204        0          581           76
                                        ------      ---       ------       ------
Total property revenues                  2,743        0        8,985        1,467
                                        ------      ---       ------       ------
Property operating and maintenance
   expense (1)                             934        0        3,022          515
                                        ------      ---       ------       ------
Property operating income               $1,809      $ 0       $5,963       $  952
                                        ======      ===       ======       ======

Average physical occupancy (2)            93.4%     0.0%        93.2%        92.8%
                                        ======      ===       ======       ======

Average monthly rental revenue (3)      $  800      $ 0       $  820       $  985
                                        ======      ===       ======       ======

Number of apartment homes                1,188        0        1,450          262
                                        ======      ===       ======       ======
</TABLE>

(1)      Before real estate depreciation expense.

(2)      Average physical occupancy is defined as the number of apartment homes
         occupied divided by the total number of apartment homes contained in
         the communities, expressed as a percentage. Average physical occupancy
         has been calculated using the average of the midweek occupancy that
         existed during each week of the period.

(3)      Represents the average monthly net rental revenue per occupied
         apartment home.

The decrease in the average monthly rental revenue for the nine months ended
September 30, 1997 as compared to the corresponding period in 1996 is
attributable to lower average monthly rental revenue on the 1997 acquisition
communities in comparison to the 1996 acquisition community. Average monthly
rental revenue for the nine months ended September 30, 1997 for the 1997
acquisitions alone was $772.

The unleveraged yield, defined as property operating income for the three and
nine months ended September 30, 1997 for the Acquisition Communities, as defined
above, on an annualized basis over total acquisition cost, was 9.08% and 9.22%,
respectively. The unleveraged yield for only the four communities acquired in
1997 for the nine months ended September 30, 1997, was 9.17%.



                                       16
<PAGE>   17




OPERATING PERFORMANCE OF THE OPERATING PARTNERSHIP'S STABILIZED DEVELOPMENT
COMMUNITIES

The Operating Partnership had four development communities (Summit Aventura,
Summit Hill II, Summit Green, and Summit River Crossing), which were stabilized
during the entire three and nine months ended September 30, 1997 but were still
in lease-up/construction in the three and nine months ended September 30, 1996.
The operating performance of these four Communities for the three and nine
months ended September 30, 1997 and 1996 is summarized below (dollars in
thousands except average monthly rental revenue):

<TABLE>
<CAPTION>
                                        Three Months Ended         Nine Months Ended
                                            September 30             September 30
                                        -------------------       -------------------
                                         1997         1996         1997         1996
                                        ------       ------       ------       ------
<S>                                     <C>          <C>          <C>          <C>   
Property revenues:
   Rental revenues                      $2,936       $2,593       $8,655       $5,377
   Other property revenue                  201          180          609          391
                                        ------       ------       ------       ------
Total property revenues                  3,137        2,773        9,264        5,768
                                        ------       ------       ------       ------
Property operating and maintenance
   expense (1)                             933          889        2,865        2,127
                                        ------       ------       ------       ------
Property operating income               $2,204       $1,884       $6,399       $3,641
                                        ======       ======       ======       ======

Average physical occupancy (2)            92.3%        81.5%        92.3%        56.7%
                                        ======       ======       ======       ======

Average monthly rental revenue (3)      $  883       $  843       $  884       $  860
                                        ======       ======       ======       ======

Number of apartment homes                1,200        1,200        1,200        1,200
                                        ======       ======       ======       ======
</TABLE>

(1)      Before real estate depreciation expense.

(2)      Average physical occupancy is defined as the number of apartment homes
         occupied divided by the total number of apartment homes contained in
         the communities, expressed as a percentage. Average physical occupancy
         has been calculated using the average of the midweek occupancy that
         existed during each week of the period.

(3)      Represents the average monthly net rental revenue per occupied
         apartment home.

The unleveraged yield, defined as property operating income for the three and
nine months ended September 30, 1997 on an annualized basis over total
development cost, was 10.98% and 10.62%, respectively.



                                       17
<PAGE>   18



OPERATING PERFORMANCE OF THE OPERATING PARTNERSHIP'S COMMUNITIES IN LEASE-UP

The Operating Partnership had nine Communities in lease-up in the three and nine
months ended September 30, 1997. A Community in lease-up is defined as one which
has commenced rental operations but has not reached stabilization. A summary of
the nine Communities in lease-up as of September 30, 1997 is as follows (dollars
in thousands):

<TABLE>
<CAPTION>
                                      Total       Actual/                         Homes        Q3 1997     % Leased
                        Number Of    Actual/     Anticipated       Actual/      Completed      Average       As Of
                        Apartment   Estimated   Construction     Anticipated    At Sept. 30,  Occupancy    Sept. 30,
Community                 Homes        Cost      Completion     Stabilization      1997         1997         1997
--------------------    ---------  -----------  ------------    -------------   ------------  ---------    ---------
<S>                     <C>        <C>          <C>             <C>             <C>           <C>          <C>   
Summit Fairways             240     $17,775      Q4 1996         Q3 1997             240        93.88%       99.60%
Summit on the River         352      23,922      Q2 1997         Q4 1997             352        82.60%       93.80%
Summit Russett              314      23,055      Q3 1997         Q3 1997             314        77.78%       96.20%
Summit Stonefield           216      18,400      Q4 1997         Q1 1998             100        21.80%       62.00%
Summit Ballantyne I         246      16,800      Q4 1997         Q2 1998             148        20.70%       49.20%
Summit Sedgebrook I         248      15,600      Q4 1997         Q2 1998             128        18.70%       46.80%
Summit Plantation II        240      22,000      Q4 1997         Q2 1998             152        20.90%       55.80%
Summit Norcroft II           54       3,800      Q4 1997         Q1 1998              12         0.30%       11.10%
Summit Lake I               302      19,700      Q2 1998         Q3 1998              44         0.60%        9.60%
                        =======    ========
                          2,212    $161,052
                        =======    ========
</TABLE>

Property operating income after interest expense was $457,000 and $460,000 for
the nine communities in lease-up for the three and nine months ended September
30, 1997, respectively.






                                       18
<PAGE>   19


OPERATING PERFORMANCE OF SUMMIT MANAGEMENT COMPANY

The operating performance of Summit Management Company (the "Management
Company") and its wholly-owned subsidiary, Summit Apartment Builders Inc. (the
"Construction Company"), for the three and nine months ended September 30, 1997
and 1996 is summarized below (dollars in thousands):

<TABLE>
<CAPTION>
                                           Three Months Ended         Nine Months Ended
                                               September 30,            September 30,
                                           -------------------       -------------------
                                            1997         1996         1997        1996
                                           ------      -------       ------      -------
<S>                                        <C>         <C>           <C>         <C>    
Property management revenue                $1,213      $ 1,228       $3,598      $ 3,526
Construction company income                   366          148          824          324
Other management company income                25           27           80           86
                                           ------      -------       ------      -------
   Total revenue                            1,604        1,403        4,502        3,936
Property management expenses:
   Operating                                1,054        1,138        3,127        3,287
   Depreciation                                48           27          144           83
   Amortization                                78           70          226          208
   Interest                                    75           75          225          225
                                           ------      -------       ------      -------
   Total property management expenses       1,255        1,310        3,722        3,803
Construction company expenses                 238          159          694          294
                                           ------      -------       ------      -------
   Total expenses                           1,493        1,469        4,416        4,097
                                           ------      -------       ------      -------
Net income (loss) of Summit
   Management Company                      $  111      ($   66)      $   86      ($  161)
                                           ======      =======       ======      =======
</TABLE>


The increase in property management revenue for the nine months ended September
30, 1997 was the result of higher revenues for managing the Operating
Partnership's Communities (which was due to an increase in the number of
Communities managed as a result of new developments and acquisitions), offset by
a reduction in the average number of communities managed for third parties
during 1997 compared to 1996. Total apartment homes managed for third parties
was 4,769 and 7,850 at September 30, 1997 and 1996, respectively. The Operating
Partnership expects third party management revenue as a percentage of total
property management revenues to continue to decline as revenues from the
Operating Partnership's communities continue to increase.

Property management revenues include $415,000 and $604,000 of fees from third
parties for the three months ended September 30, 1997 and 1996, respectively,
and $1.3 million and $1.7 million of fees from third parties for the nine months
ended September 30, 1997 and 1996, respectively.

Construction Company income and expenses increased in 1997 compared to 1996
primarily due to the increased number of construction projects. The increase in
construction projects was a result of the Operating Partnership's decision to
expand its in-house construction operations in the state of Florida to cover the
entire geographic area in which the Operating Partnership operates. All of the
Construction Company's income is from contracts with the Operating Partnership.



                                       19
<PAGE>   20


OTHER INCOME AND EXPENSES

Interest expense increased $1.5 million and $2.0 million or 34.9% and 15.3% for
the three and nine months ended September 30, 1997, respectively, primarily due
to interest on debt related to the Communities acquired in 1997 and interest on
Communities in lease-up, offset by the Operating Partnership's repayment of debt
in connection with Summit Properties' public offering of 5.75 million shares of
Common Stock in August 1996, the proceeds of which were contributed to the
Operating Partnership.

Depreciation expense increased $1.2 million and $3.2 million or 25.0% and 24.3%
for the three and nine months ended September 30, 1997, respectively, primarily
due to Communities acquired in 1997 and 1996, increased depreciation on
Communities that were in construction in 1996, but completed by 1997 and
Communities in lease-up in 1997.

General and administrative expenses were relatively stable with an increase of
only $54,000 or 2.6% to $2.1 million for the nine months ended September 30,
1997 from $2.0 million for the same period in 1996. General and administrative
expenses were 2.5% and 3.0% of total revenues for the nine months ended
September 30, 1997 and 1996, respectively.

LIQUIDITY AND CAPITAL RESOURCES

The Operating Partnership's working capital is primarily provided by operations
and an unsecured $150 million credit facility (the "Unsecured Credit Facility").
The Unsecured Credit Facility has a three year term and currently bears interest
at LIBOR + 110 basis points based upon the Operating Partnership's credit rating
of BBB- by Standard & Poors Rating Group. The interest rate can be reduced in
the event of an upgrade of the Operating Partnership's unsecured credit rating
as assigned by Standard & Poors Rating Group (which rating must be accompanied
by the comparable senior unsecured bond rating from one of Moody's, Duff &
Phelps or Fitch) as follows:

                          S & P CREDIT RATING                       RATE
                          -------------------                       ----
            BBB-....................................          LIBOR   +   110
            BBB.....................................          LIBOR   +    95
            BBB+....................................          LIBOR   +    80

The Unsecured Credit Facility provides $25 million for general working capital
purposes with the remaining $125 million available to finance new development
and acquisitions.

On August 12, 1997, the Operating Partnership completed a $125 million senior
unsecured debt offering comprised of three tranches. The first tranche, $25
million of 6.80% Notes due on August 15, 2002, was priced at 99.940% to yield
6.81%, or 73 basis points over the rate on U. S. Treasury securities with a
comparable maturity. The second tranche, $50 million of 6.95% Notes due on
August 15, 2004, was priced at 99.764% to yield 6.99% or 81 basis points over
the rate on U. S. Treasury securities with a comparable maturity. The third
tranche, $50 million of 7.2% Notes due on August 15, 2007, was priced at 99.83%
to yield 7.22% or 104 basis points over the rate on U. S. Treasury securities
with a comparable maturity. The proceeds from the Notes were used to pay down
the Unsecured Credit Facility.



                                       20
<PAGE>   21


The Operating Partnership's outstanding indebtedness at September 30, 1997
totaled $438.1 million. This amount includes approximately $205.8 million in
fixed rate conventional mortgages, $53.0 million of variable rate tax-exempt
bonds, $156.0 million of fixed rate unsecured notes, $9.3 million of tax exempt
fixed rate loans, and $14.0 million under the variable rate Unsecured Credit
Facility.

The Operating Partnership's net cash provided by operating activities increased
from $30.7 million for the nine months ended September 30, 1996 to $41.9 million
for the same period in 1997 primarily due to a $11.7 million increase in
property operating income.

Net cash used in investing activities increased from $67.6 million for the nine
months ended September 30, 1996 to $127.9 million for the same period in 1997
primarily due to an increase in the acquisition of Communities and an increase
in construction of real estate assets, partially offset by the proceeds from the
sale of a Community in 1997.

Net cash provided by financing activities increased from $52.2 million for the
nine months ended September 30, 1996 to $86.2 million for the same period in
1997, primarily due to an increase in debt proceeds partially offset by lower
Summit Properties' equity offering proceeds contributed to the Operating
Partnership, by higher debt repayments and by higher distributions to
unitholders. The increase in debt proceeds was primarily due to $125 million
senior unsecured debt issued in August, 1997. The lower equity issuance proceeds
were due to Summit Properties' public stock offering in August, 1996. The higher
debt repayments were the result of more credit facility debt being repaid in
1997 with the proceeds of the $125 million debt offering than credit facility
debt repaid in 1996 with the proceeds of Summit Properties' public stock
offering.

The Operating Partnership expects to meet its short-term liquidity requirements
(i.e., liquidity requirements arising within twelve months) generally through
its net cash provided by operations and borrowings under the Unsecured Credit
Facility. The Operating Partnership believes that its net cash provided by
operations will be adequate to meet its operating requirements and to satisfy
Summit Properties' applicable REIT dividend payment requirements in both the
short-term and in the long-term. Improvements and renovations at existing
Communities are expected to also be funded from property operations.

The Operating Partnership expects to meet its long-term liquidity requirements
(i.e., liquidity requirements arising after twelve months), such as current and
future developments, debt maturities, acquisitions, renovations and other
non-recurring capital expenditures, with borrowings under its Unsecured Credit
Facility, through the issuance of long-term secured and unsecured debt
securities and additional equity securities of Summit Properties which will be
contributed to the Operating Partnership, or in connection with the acquisition
of land or improved property, through the issuance of Units of the Operating
Partnership.



                                       21
<PAGE>   22


On May 14, 1997, the Operating Partnership sold a community in Charlotte, North
Carolina known as Summit Charleston for $9.5 million. A gain on the sale of
approximately $4.4 million was recognized.

The Operating Partnership purchased an apartment community known as Summit
Windsor II for $17.1 million in cash on July 18, 1997. Summit Windsor II, which
was developed by the Operating Partnership in 1988, has 306 apartment homes and
is located in Frederick, Maryland. The proceeds from the sale of the Summit
Charleston community and borrowings on the Unsecured Credit Facility were used
to fund the purchase. The third quarter acquisition was in addition to the three
Communities with a total of 1,188 apartment homes acquired at a cost of $65.8
million in the first quarter of 1997.



                                       22
<PAGE>   23


The following table sets forth certain information regarding debt financing as
of September 30, 1997 and December 31, 1996:

<TABLE>
<CAPTION>
                                                                            Principal Outstanding
                                          Interest                     ------------------------------
                                         Rate As Of        Maturity     September 30,   December 31,
                                      September 30, 1997   Date (1)        1997             1996
                                     -------------------------------   --------------   -------------
<S>                                  <C>                  <C>          <C>              <C>     
FIXED RATE DEBT
   MORTGAGE LOAN (2) (3)                    5.88%          2/15/01      $     121,040   $     122,950
   MORTGAGE LOAN (2) (3)                    7.71%         12/15/05             29,328          29,653
   MORTGAGE LOAN (4)                        8.00%          09/1/05              8,578           8,638
   MORTGAGE NOTES
    Summit Hollow I                         8.00%          11/1/18              2,254           2,286
    Summit Hollow II                        7.75%           1/1/29              2,571           2,587
    Summit Creekside                        8.00%           6/1/22              2,847           2,877
    Summit Old Town                         8.00%           9/1/20              3,061           3,097
    Summit Eastchester                      8.00%           5/1/21              3,829           3,872
    Summit Foxcroft                         8.00%           4/1/20              2,743           2,788
    Summit Oak                              7.75%          12/1/23              2,561           2,585
    Summit Sherwood                         7.88%           3/1/29              3,310           3,329
    Summit Radbourne                        9.80%           3/1/02              8,621           8,683
    Summit Sand Lake                        7.88%          2/15/06             15,059               -

   TAX EXEMPT MORTGAGE NOTES
    Summit Crossing                         6.95%          11/1/25              4,175           4,213
    Summit East Ridge                       7.25%          12/1/26              5,115           5,156
                                                                       --------------   -------------
      TOTAL MORTGAGE DEBT                                                     215,092         202,714
                                                                       --------------   -------------

   UNSECURED NOTES
    6.80% Notes due 2002                    6.80%          8/15/02             25,000               -
    6.95% Notes due 2004                    6.95%          8/15/04             50,000               -
    7.20% Notes due 2007                    7.20%          8/15/07             50,000               -
    Bank Note                               7.85%           8/3/02             16,000          16,000
    Bank Note                               7.61%           8/3/00             15,000          15,000
                                                                       --------------   -------------
      TOTAL UNSECURED NOTES                                                   156,000          31,000
                                                                       --------------   -------------
      TOTAL FIXED RATE DEBT                                                   371,092         233,714

VARIABLE RATE DEBT
   UNSECURED CREDIT FACILITY             LIBOR + 110       9/30/99             14,050          22,357

   TAX EXEMPT BONDS (5)
    Summit Belmont                          5.55%           4/1/07             11,650          11,850
    Summit Hampton                          5.55%           6/1/07             12,490          12,700
    Summit Pike Creek                       5.55%          8/15/20             13,082          13,262
    Summit Gateway                          5.55%           7/1/07              7,100           7,300
    Summit Stony Point                      5.55%           4/1/29              8,630           8,750
                                                                       --------------   -------------
      TOTAL TAX EXEMPT BONDS                                                   52,952          53,862
                                                                       --------------   -------------
      TOTAL VARIABLE RATE DEBT                                                 67,002          76,219

                                                                       ==============   =============
      TOTAL OUTSTANDING INDEBTEDNESS                                   $      438,094   $     309,933
                                                                       ==============   =============
</TABLE>

(1)    With the exception of the Mortgage Loans referred to in Note 3 below,
       all of the secured debt can be prepaid at any time. Prepayment of such
       debt is generally subject to penalty or premium; however, the tax
       exempt mortgage notes can be prepaid at any time without penalty or
       premium.



                                       23
<PAGE>   24


(2) Mortgage Loans are secured by the following Communities:

    Summit Glen            Summit Blue Ash         Summit Heron's Run
    Summit Springs         Summit Square           Summit Perico
    Summit Village         Summit Waterford        Summit Providence
    Summit Highland        Summit Del Ray          Summit Meadow
    Summit Norcroft        Summit Palm Lake        Summit Windsor

(3) The Operating Partnership may elect to extend the maturity of each of these
    Mortgage Loans for a period of up to two years by providing six months'
    written notice. These Mortgage Loans generally may not be prepaid in whole
    or in part during their original term, but may be prepaid in whole or in
    part at any time during applicable extension periods, if any, without
    premium or penalty.

(4) Mortgage Loan secured by Summit Simsbury and Summit Touchstone Communities.

(5) The tax exempt bonds (the "Bonds") bear interest at various rates set by a
    remarketing agent at the demand note index plus 0.50%, set weekly, or the
    lowest percentage of prime which allows the resale at a price of par. The
    Bonds are enhanced by letters of credit from financial institutions (the
    "Credit Enhancements"), each of which Credit Enhancements will terminate
    prior to the maturity dates of the related Bonds. In the event such Credit
    Enhancements are not renewed or replaced upon termination, the related loan
    obligations will be accelerated.

The London Interbank Offered Rate (LIBOR) at September 30, 1997 was 5.66%

DEVELOPMENT ACTIVITY

The Operating Partnership's developments in process at September 30, 1997 are
summarized as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                                          Total                    Estimated    Anticipated
                                           Apartment    Estimated     Cost To       Cost To     Construction
Community                                    Homes        Costs        Date        Complete      Completion
----------------------------------------  ------------ ------------ ------------  -----------  --------------
<S>                                       <C>          <C>          <C>           <C>          <C>   
Summit Stonefield-Yardley, PA                     216  $     18,400 $   $ 16,329  $     2,071      Q4 1997
Summit Norcroft II-Charlotte, NC                   54         3,800        3,076          724      Q4 1997
Summit Sedgebrook I-Charlotte, NC                 248        15,600       13,830        1,770      Q4 1997
Summit Ballantyne I-Charlotte, NC                 246        16,800       14,001        2,799      Q4 1997
Summit Plantation II-Plantation, FL               240        22,000       20,445        1,555      Q4 1997
Summit Lake I-Raleigh, NC                         302        19,700       13,786        5,914      Q2 1998
Summit Fair Lakes I-Fairfax, VA                   370        32,900        9,529       23,371      Q1 1999
Summit New Albany-Columbus, OH                    301        22,600        6,581       16,019      Q1 1999
Summit Governor's Village-Chapel Hill, NC         242        16,400        2,065       14,335      Q4 1998
Summit Ballantyne II-Charlotte, NC                154        10,100        1,626        8,474      Q1 1999
                                          ------------ ------------ ------------  -----------
                                                2,373       178,300      101,268       77,032

Other development and construction costs            -             -       16,840            -
                                          ------------ ------------ ------------  -----------
                                                2,373  $    178,300 $    118,108  $    77,032
                                          ============ ============ ============  ===========
</TABLE>

In addition, the Operating Partnership has a commitment to purchase a community
(Summit St. Claire) currently under construction in Atlanta, Georgia for
approximately $27.5 million, subject to adjustment based on the percentage of
apartment homes leased as of the date of acquisition. The 336 apartment home
community is expected to be purchased, after reaching rental stabilization,
which is currently expected in the fourth quarter of 1998.


                                       24
<PAGE>   25

Estimated costs to complete the development communities and the purchase
commitment for Summit St. Claire represent all of the Operating Partnership's
material commitments for capital expenditures.

Certain Factors Affecting the Performance of Development Communities

The Operating Partnership is optimistic about the operating prospects of the
Communities under construction even with the increased supply of newly
constructed apartment homes of comparable quality in many of its markets. As
with any development community, there are uncertainties and risks associated
with the development of the Communities described above. While the Operating
Partnership has prepared development budgets and has estimated completion and
stabilization target dates based on what it believes are reasonable assumptions
in light of current conditions, there can be no assurance that actual costs will
not exceed current budgets or that the Operating Partnership will not experience
construction delays due to the unavailability of materials, weather conditions
or other events.

Other development risks include the possibility of incurring additional cost or
liability resulting from defects in construction material and the possibility
that financing may not be available on favorable terms, or at all, to pursue or
complete development activities. Similarly, market conditions at the time these
Communities become available for leasing will affect the rental rates that may
be charged and the period of time necessary to achieve stabilization, which
could make one or more of the development communities unprofitable or result in
achieving stabilization later than currently anticipated. In addition, the
Operating Partnership is conducting feasibility and other pre-development work
for seven Communities. The Operating Partnership could abandon the development
of any one or more of these potential Communities in the event that it
determines that market conditions do not support development, financing is not
available on favorable terms or other circumstances prevent development.
Similarly, there can be no assurance that if the Operating Partnership does
pursue one or more of these potential Communities that it will be able to
complete construction within the currently estimated development budgets or that
construction can be started at the time currently anticipated.

CAPITALIZATION OF FIXED ASSETS AND PROPERTY IMPROVEMENTS

The Operating Partnership has established a policy of capitalizing those
expenditures relating to acquiring new assets, materially enhancing the value of
an existing asset, or substantially extending the useful life of an existing
asset. All expenditures necessary to maintain a Community in ordinary operating
condition (including replacement carpets) are expensed as incurred.

The Operating Partnership has a capital expenditure replacement program whereby
various physical components are replaced as necessary to maintain the
Communities in normal operating condition. Certain physical components may be
replaced other than at regular inspection intervals when extraordinary wear has
occurred. The Operating Partnership also makes capital expenditures for new
physical components if these expenditures will produce sufficient revenue
enhancements as to achieve acceptable returns on invested capital. There are
currently no material commitments with respect to renovation or improvements at
existing facilities.




                                       25
<PAGE>   26


Capitalized expenditures for the nine months ended September 30, 1997 and 1996
are summarized as follows (dollars in thousands):

<TABLE>
<CAPTION>
                                                      Nine Months Ended
                                                         September 30,
                                                   ----------------------
                                                     1997          1996
                                                   --------      --------
<S>                                                <C>           <C>    
Acquisition of new Communities (1)                 $ 82,898      $21,913
Construction of new Communities (2)                  74,382       59,431
Capitalized interest                                  4,528        2,884
Non-recurring capital expenditures:
   Construction of garages                              233          720
   Access gates                                         203          133
   New signage                                           71          113
   Water meters                                          19          201
   Washer/dryer units                                    12           96
   Major improvements                                 2,560        1,037
   Other                                                219           29
                                                   --------      -------
   Total non-recurring capital expenditures           3,317        2,329
                                                   --------      -------
Recurring capital expenditures:
   Exterior painting                                    868          661
   Other community additions and improvements         1,642        1,141
   Corporate additions                                   79            3
                                                   --------      -------
   Total recurring capital expenditures               2,589        1,805
                                                   --------      -------
                                                   $167,714      $88,362
                                                   ========      =======
</TABLE>


(1) Includes the issuance of Units a value of $8.9 million and assumption of
debt of $15.2 million in 1997. In addition, includes the assumption of $14.3
million of debt and conversion of equity investment into fixed assets of $1.2
million in conjunction with the purchase of Summit Plantation in 1996.

(2) Includes issuance of $2.1 million of Units for the acquisition of land in
1996.

Construction of Communities was funded primarily by unsecured fixed rate debt,
Summit Properties' equity offering proceeds contributed to the Operating
Partnership and borrowing under the Operating Partnership's credit facilities.
Other additions and improvements were funded primarily by Community operations
and the Operating Partnership's credit facilities.

INFLATION

Substantially all of the leases at the Communities are for a term of one year or
less, which, coupled with the relatively high occupancy rates, may enable the
Operating Partnership to seek increased rents upon renewal of existing leases or
commencement of new leases. The short-term nature of these leases generally
serves to reduce the risk to the Operating Partnership of the adverse effect of
inflation.




                                       26
<PAGE>   27


FUNDS FROM OPERATIONS

The White Paper on Funds from Operations approved by the Board of Governors of
NAREIT in March 1995 defines Funds from Operations as net income (loss)
(computed in accordance with GAAP), excluding gains (or losses) from debt
restructuring and sales of property, plus real estate related depreciation and
amortization and after adjustments for unconsolidated partnerships and joint
ventures. The Operating Partnership computes Funds from Operations in accordance
with the standards established by the White Paper, which may differ from the
methodology for calculating Funds from Operations utilized by other equity
REITs, and, accordingly, may not be comparable to such other REITs. Funds
Available for Distribution is defined as Funds from Operations less capital
expenditures funded by operations (recurring capital expenditures). The
Operating Partnership's methodology for calculating Funds Available for
Distribution may differ from the methodology for calculating Funds Available for
Distribution utilized by other REITs, and accordingly, may not be comparable to
other REITs. Funds from Operations and Funds Available for Distribution do not
represent amounts available for management's discretionary use because of needed
capital replacement or expansion, debt service obligations, property
acquisitions, development and distributions or other commitments and
uncertainties. Funds from Operations and Funds Available for Distribution should
not be considered as alternatives to net income (determined in accordance with
GAAP) as an indication of the Operating Partnership's financial performance or
to cash flows from operating activities (determined in accordance with GAAP) as
a measure of the Operating Partnership's liquidity, nor are they indicative of
funds available to fund the Operating Partnership's cash needs, including its
ability to make distributions. The Operating Partnership believes Funds from
Operations and Funds Available for Distribution are helpful to investors as
measures of the performance of the Operating Partnership because, along with
cash flows from operating activities, financing activities and investing
activities, they provide investors with an understanding of the ability of the
Operating Partnership to incur and service debt and make capital expenditures.



                                       27
<PAGE>   28




Funds from Operations and Funds Available for Distribution for the three and
nine months ended September 30, 1997 and 1996 are calculated as follows (dollars
in thousands):

<TABLE>
<CAPTION>
                                               Three Months Ended                     Nine Months Ended
                                                  September 30,                         September 30,
                                        -------------------------------       -------------------------------
                                            1997               1996               1997               1996
                                        ------------       ------------       ------------       ------------
<S>                                     <C>                <C>                <C>                <C>         
Net income                              $      6,948       $      5,114       $     25,098       $     13,696
Gain on sale of real estate assets              --                 --               (4,366)              --
Extraordinary items                             --                  626               --                  626
Depreciation:
   Operating Communities                       5,843              4,673             16,436             13,221
   Summit Plantation                            --                 --                 --                   33
                                        ------------       ------------       ------------       ------------
Funds from Operations                         12,791             10,413             37,168             27,576
Recurring capital expenditures (1)            (1,118)              (402)            (2,589)            (1,805)
                                        ------------       ------------       ------------       ------------
Funds Available for Distribution        $     11,673       $     10,011       $     34,579       $     25,771
                                        ============       ============       ============       ============

Weighted average units                    27,369,316         24,070,632         27,252,718         21,769,807
                                        ============       ============       ============       ============

</TABLE>

(1) Recurring capital expenditures are expected to be funded from operations and
consist primarily of exterior painting, new appliances, vinyl, blinds, tile, and
wallpaper. In contrast, non- recurring capital expenditures, such as major
improvements, new garages and access gates, are expected to be funded by
financing activities and are therefore not included in the calculation of Funds
Available for Distribution.



                                       28
<PAGE>   29



PART II.   OTHER INFORMATION

ITEM 2     CHANGES IN SECURITIES

During the three months ended September 30,1997 the Operating Partnership has
issued Units in private placements in reliance on the exemption from
registration under section 4(2) of the Securities Act in the amounts and for the
consideration set forth below:

         A.       Summit Properties has issued an aggregate of 7,016 shares of
                  Common Stock pursuant to its Dividend Reinvestment Plan.
                  Summit Properties has contributed the proceeds (approximately
                  $134,000) of these sales to the Operating Partnership in
                  consideration of an aggregate of 7,016 Units.

         B.       Summit Properties has issued an aggregate of 250 shares of
                  Common Stock in connection with restricted stock awards. Each
                  time a share of Common Stock is issued in connection with such
                  an award, the Operating Partnership issues a Unit to Summit
                  Properties; consequently, 250 Units have been issued to Summit
                  Properties to date.

         C.       Summit Properties has issued an aggregate of 20,623 shares of
                  Common Stock pursuant to its Employee Stock Purchase Plan.
                  Summit Properties has contributed the proceeds (approximately
                  $425,342) of these sales to the Operating Partnership in
                  consideration of an aggregate of 20,623 Units.

         D.       Summit Properties has issued an aggregate of 1,000 shares of
                  Common Stock pursuant to the exercise of stock options. Summit
                  Properties has contributed the proceeds (approximately
                  $19,000) of these options to the Operating Partnership in
                  consideration of an aggregate 1,000 Units.

ITEM 6.       EXHIBITS AND REPORTS ON FORM 8-K

(a)   Exhibits

      10.1    First Amendment to $150,000,000 Credit Agreement

      10.2    Schedule of Executives with Executive Severance Agreements and
              Executive Severance Agreement

      27.1    Financial Data Schedule




                                       29
<PAGE>   30




                                   SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                            SUMMIT PROPERTIES PARTNERSHIP, L.P.




November 12, 1997                           /s/  William F. Paulsen
-----------------                           -----------------------
(Date)                                      William F. Paulsen, President
                                            and Chief Executive Officer




November 12, 1997                           /s/  Michael L. Schwarz
-----------------                           ------------------------
(Date)                                      Michael L. Schwarz, Executive
                                            Vice President and Chief 
                                            Financial Officer






                                       30
<PAGE>   31


                                  EXHIBIT INDEX


      10.1    First Amendment to $150,000,000 Credit Agreement

      10.2    Schedule of Executives with Executive Severance Agreements and
                Executive Severance Agreement

      27.1    Financial Data Schedule








                                       31