RE SplitThey keep more assets in the "preferred" section of the portfolio to ensure payouts.
There is more risk in the Class A units.
The payout on the preferreds is stable and as close to being guaranteed as it gets.
The payout on Class A not so much
The payout on Class A units can be cut very quickly, without notice, by a decision of the BOD. It can also be raised in a similar manner.
Of course, they will announce such decisions with a few months notice before implementing the decision.
When this happens, the price of the units will either tank or soar, depending on the direction of the payout.
We may be very close to some sort of pay out change.
I'm thinking their 15% rate is more than they can actually pay out in perpetuity.
Yes, I know they have the provision to stop paying distributions when the price of the unit drops below a certain point. That doesn't mean they won't make changes if needed to keep the fund afloat.