N O T E 8 : N O N - C A S H T R A N S A C T I O N S In connection with the acquisitions of ten properties, in ten separate transactions, located in the Eastern Massachusetts, Southeast, Suburban Washington D.C. and San Diego markets in 2004, and the acquisi- tion of a property located in the Eastern Massachusetts market in 2003, we assumed secured notes payable.The following table summarizes these transactions (in thousands):  2004 2003 2002 Aggregate purchase price $ 185,912 $ 6,900 $ - Secured notes payable assumed 127,653 3,384 - Cash paid for the properties $ 58,259 $ 3,516 $ - In connection with the sale of a property in the Eastern Massachusetts market in August 2003, the buyer assumed a secured note payable totaling $17.3 million. In 2004, 2003 and 2002, we incurred $3,157,000, $3,354,000 and $3,993,000, respectively, in non- cash stock compensation expense.  In July 2004, we redeemed all 1,543,500 outstanding shares of our 9.50% Series A cumulative redeemable preferred stock (“Series A preferred stock”) at a redemption price of $25.00 per share plus $0.5409722 per share representing accumulated and unpaid dividends to the redemption date. In accor- dance with EITF Topic D-42, we recorded a charge of approximately $1,876,000 to net income avail- able to common stockholders during the second quarter of 2004 for costs related to the redemption of the Series A preferred stock.We redeemed our Series A preferred stock with proceeds from the Series C preferred stock offering. In January 2002, we completed a public offering of 2,300,000 shares of our 9.10% Series B cumulative redeemable preferred stock (“Series B preferred stock”) (including the shares issued upon exercise of the underwriters’ over-allotment option).The shares were issued at a price of $25.00 per share, resulting in aggregate proceeds of approximately $55.1 million (after deducting underwriters’ discounts and other offering costs).The dividends on our Series B preferred stock are cumulative and accrue from the date of original issuance. We pay dividends quarterly in arrears at an annual rate of $2.275 per share. Our Series B preferred stock has no stated maturity, is not subject to any sinking fund or mandatory redemp- tion and is not redeemable prior to January 22, 2007, except in order to preserve our status as a REIT. Investors in our Series B preferred stock generally have no voting rights. On or after January 22, 2007, we may, at our option, redeem our Series B preferred stock, in whole or in part, at any time with pro- ceeds from the sale of equity securities at a redemption price of $25.00 per share, plus accrued and unpaid dividends. In June 2004, we completed a public offering of 5,185,500 shares of our 8.375% Series C cumulative redeemable preferred stock (“Series C preferred stock”) (including the shares issued upon exercise of the underwriters’ over-allotment option).The shares were issued at a price of $25.00 per share, resulting in aggregate proceeds of approximately $124.0 million (after deducting underwriters’ discounts and other offering costs).The proceeds were used to redeem our Series A preferred stock with the remaining por- tion used to pay down our unsecured line of credit.The dividends on our Series C preferred stock are cumulative and accrue from the date of original issuance. We pay dividends quarterly in arrears at an annual rate of $2.09375 per share. Our Series C preferred stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and is not redeemable prior to June 29, 2009, except in order to preserve our status as a REIT. Investors in our Series C preferred stock generally have no voting rights. Series C Cumulative Redeemable Preferred Stock Series B Cumulative Redeemable Preferred Stock Series A Cumulative Redeemable Preferred Stock N O T E 9 : P R E F E R R E D S T O C K A N D E X C E S S S T O C K P 38