Home Properties completes stock sale.

Home Properties has completed the sale of the final $20-million piece of its Series C Cumulative Convertible Preferred Stock through a private transaction with affiliates of AEW Capital Management and the Pacific Life Insurance Company.

The Series C Preferred Stock has been assigned a rating of 'BBB-' (Triple-B Minus) by Fitch and carriers an annual dividend rate equal to the greater of 8.75 percent or the actual dividend paid on the number of the Company's common shares into which the Series C Preferred Stock is convertible. The Series C Preferred Stock has a conversion price of $3025 per share and can be redeemed at the Company's option after five years The Company also issued 80,000 additional warrants to purchase common shares at a price of $30-25 per share, expiring in five years. Proceeds will be used to fund potential acquisitions and property upgrades. Prudential Real Estate Investors acted as the lead investor in negotiating this transaction on behalf of AEW and Pacific Life, and Mercury Partners LLC acted as financial advisor to Home Properties.

According to Amy L. Tait. Executive Vice President of Home Properties, "We are grateful to the several significant institutions that have recently made equity investments in our Company. This closing brings the total amount raised through the sale of convertible preferred stock to $85 million over the past month. With these proceeds, we have fully repaid our leverage to only 39% of our total market capitalization, and accumulated approximately $40 million in cash on hand for future investment. We have now satisfied our equity needs for the foreseeable future."

Robert G. Gifford, Managing Director of AEW Capital Management and Senior Portfolio Manager for the AEW Targeted Securities Funds, said, 'We are pleased to join distinguished investors such as Prudential Real Estate Investors, Teachers Insurance and Annuity Association, and Pacific Life in this Series C Preferred Stock. We look forward to being an investor in Home Properties, which has consistently created shareholder value through the disciplined acquisition, renovation and management of apartment communities. We anticipate continued strong performance from the Company's very experienced management team."