Preferred Equity Experience

[Maria T.]

Hello Everyone … always get great advise here!

We are looking to use preferred equity on our new deal..

What was your experience with preferred equity? Would your recommend going with preferred equity?

[Mike Iger]

Quote from @Brian Burke:

@Maria T., why are you looking to use preferred equity?  If you are looking to use it you probably see it as a solution that produces specific benefits.  Knowing your reasons can help people give you the best advice.

I can’t think of a worse time to use preferred equity unless I think back about 15 years.  But my reasons for feeling that way might not apply to your specific situation.  Perhaps you have a compelling reason and strategy where it would be a viable option.

 @Brian Burke I'm not a big fan of pref equity in the first place, as common equity investors often aren't compensated for the additional risk. I'm curious what your reasons are.