Terms

Series

5.15% Cumulative Preferred Shares of Beneficial Interest, Series F

Liquidation Preference

$25.00

Coupon Rate

5.15%

Rate Type

Fixed

Annual Dividend

$1.29

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

June 2, 2022

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: Debt Obligations Of The Company; Pari Passu With: 5.900% Cumulative Preferred Shares Series S, 5.750% Cumulative Preferred Shares Series T, 5.625% Cumulative Preferred Shares Series U, 5.375% Cumulative Preferred Shares Series V, 5.200% Cumulative Preferred Shares Series W, 5.200% Cumulative Preferred Shares Series X, 6.375% Cumulative Preferred Shares Series Y, 6.000% Cumulative Preferred Shares Series Z, 5.875% Cumulative Preferred Shares Series A, 5.400% Cumulative Preferred Shares Series B, 5.125% Cumulative Preferred Shares Series C, 4.95% Cumulative Preferred Shares Series D, 4.90% Cumulative Preferred Shares Series E; Senior To: Common Shares Of Beneficial Interest, Any Other Shares Of Beneficial Interest Ranking Junior To The Preferred Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Depositary Share Fraction

0.001

Shares Offered

10,000,000

Prospectus Summary

Public Storage (NYSE: PSA), the world's largest self-storage REIT, is offering 10,000,000 Depositary Shares each representing 1/1,000th of a share of its 5.15% Cumulative Preferred Shares of Beneficial Interest, Series F, with a liquidation preference of $25.00 per Depositary Share. The fixed annual dividend is $1.2875 per Depositary Share ($0.321875 quarterly), payable on March 31, June 30, September 30, and December 31, beginning June 30, 2017. The shares are cumulative, meaning any missed dividends accrue and must be paid in full before common shareholders receive any distributions. The first optional redemption date is June 2, 2022, at $25.00 per Depositary Share plus accrued distributions. The Series F Preferred Shares rank pari passu with 13 other outstanding series of Public Storage cumulative preferred shares (Series S through E) and senior to the company's common shares. As a trust-level issuance by the REIT parent (not a subsidiary), there is no structural subordination concern from an operating subsidiary. However, all preferred equity ranks junior to the company's debt obligations, including its revolving credit facility and term loan. Notably, the shares may be called before June 2, 2022 if redemption is necessary to preserve Public Storage's REIT tax status — a regulatory call that could be triggered if continued issuance jeopardized compliance with IRS REIT qualification rules, though this scenario is considered remote for an established REIT. At the $25.00 offering price, the Series F Preferred yields 5.15% annually. Because Public Storage is a REIT, dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available to individual shareholders, nor for the corporate dividends-received deduction (DRD); instead, they are taxed as ordinary income, except to the extent designated as capital gain dividends. Record dates are set 15–45 days before each quarterly payment date, at the Board's discretion. The dividend stopper is significant: if any past quarterly distributions remain unpaid, Public Storage is prohibited from paying dividends on its common shares or repurchasing common or parity shares until the Series F arrearages are fully satisfied.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Public Storage has not paid all accumulated dividends on the Series F Preferred Shares for all past periods, it may not pay dividends on its common shares or any other junior or parity shares, and may not repurchase common or junior shares.

Other Preferreds from Public Storage

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 42 (Average)