Home Properties.

Home Properties has completed the sale of $25 million of Series D Cumulative Convertible Preferred Stock through a private transaction with The Equitable 1-ife Assurance Society of the Limited States. The Series D Preferred Stock has been assigned a rating of 'BBB' by Fitch, the international rating agency formed through the recent merger of Fitch IBCA and Duff & Phelps Credit Rating Co. Fitch has also recently assigned a corporate credit rating to Home Properties of 'BBB'.

The Series D Preferred Stock carries an annual dividend rate equal to the greater of 8.776 percent or the actual dividend paid on the number of the Company's common shares into which the Series D Preferred Stock is convertible. The Series D Preferred Stock has a conversion price of $3000 per share and can be redeemed at the Company's option after five years. Proceeds will be used to fund potential acquisitions and property upgrades. Mercury Partners LI-C acted as financial advisor to Home Properties in connection with the transaction.

According to Amy L. Tait, Executive Vice President of Home Properties, "We are delighted to have Equitable as our partner and are excited about the potential to expand this alliance as our Company grows. Using convertible preferred stock allows us to raise equity an terms that more closely reflect the underlying net asset value of our portfolio, thereby enabling us to continue to make value-added acquisitions without diluting our shareholders."