REIT Preferreds Market Overview

REIT preferred general characteristics

  • $25 par value, perpetual fixed (a few floating) rate securities that carry cumulative dividend provisions
  • Quarterly cash dividends that must be paid in entirety before any distributions can be made to common shareholders
  • New issues carry 5 – year call protection
  • Some REIT preferreds are convertible into common stock
  • Senior in balance sheet status to common stock and junior in balance sheet status to debt