Skip to main content
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.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.