Taxation of Pref Equity

[Mike Shah]

I've been looking at a few pref equity deals and it seems like they are all promising different taxation. 

Some have told me that they get taxed at lower capital gains tax rates, while others have said you get a 1099-DIV which would get taxed at ordinary income tax rates. Any insight onto how pref equity is typically taxed if you're getting a 10-12% monthly coupon payment?