Why are preferred equity and mezzanine debt investments part of the Fund’s strategy?
Preferred equity and mezzanine debt investments function differently than typical equity ownership of a property. Preferred equity and mezzanine debt investments are typically less risky than equity investments and they come with regular interest payments from the borrower. Thus, these investments are included in the IncomePlus portfolio in order to diversify risk in the portfolio and to supplement cash flow that each property generates with their associated interest income.