The only thing that really matters for us preferred holders is that the company survives. The excellent post Another Look at AHR by bigpopparef encourages us to believe it will. There's gotta be a few survivors in the mortgage REIT business (especially well-managed commerial REITs), don't there??!!
Still, it's hard to grab at the falling knife. I've got my hands a bit bloody in the past. Averaging down only works IF the company survives. If it does, there'll be some who look like geniuses for buying the preferreds at the current prices.