WPG - The Next GGP And Why Lenders Won't Force PREIT To Liquidate Any Time Soon

• Lenders will act rationally and in their self-interest, and therefore will not force a liquidation so shortly after PREIT's emergence from Chapter 11 restructuring in this distressed market.
• In the worst case scenario, the downside risk for common and preferred shares are similar, with preferred shares offering higher returns only if assets are sold at a 10-12.75% cap rate.
• Preferred shareholders are better off only in the incredibly unlikely Chapter 7 liquidation scenario, and miss out in the uncapped upside of 450% to 900% in other more likely scenarios.
• Preferred shares are a great investment, but common shares may be the investment of the decade and offer a superior risk/reward ratio.

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