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No. of Recommendations: 2
While acknowledging that preferreds are higher in the capital structure than the common shares, what has the actually history been?

I think that there could be agency issues, managements want to keep paying themselves for as long as possible and might just run the company into the ground while continuing to pay themselves for as long as possible. Managements often also own common shares, but in my experience rarely much preferreds.

Anyone know of any REITs that went through bankruptcy and/or liquidation and just how did the preferreds actually do?

If CBL goes down, a real possibility, it will be a good case study. Three family members in senior management, they own (or at least used to) own a fair amount of common, and after the tenant electricity reimbursement issue their ethics have to be questioned.

I have nothing tangible to anchor my doubts just a gut feeling.
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