How big is the real estate sector in S&P 500?
We’ve seen the CRE capital stack in a previous post and how preferred equity is a part of it. We’ve seen that preferred equity is a debt/equity hybrid that resides in the third position of the capital stack. It is more senior than common equity, but less senior than all forms of debt (Senior and Mezzanine). It is important to understand the risk and characteristics of preferred equity compared to the rest of the stack. PropertyMetrics explains preferred equity in detail and compares it to the rest of the capital stack.