I'm with you there 2ic, as the FIIG special report points out;...

I'm with you there 2ic, as the FIIG special report points out; ALZ took some large writedowns on their investment properties however, even after the writedowns their balance sheet is rock solid. Their cap rate is currently at 8.48% which is relatively high, which means they've got plenty of space to take upon some extra (cheaper) debt on the balance which is tax-deductible, rather than paying out the non-deductible and expensive distributions to AAZPB holders.

The only thing that would stop ALZ from buying back the AAZPBs is that being perpetual hybrids they count as equity for accounting purposes.