Terms

Series

5.60% Cumulative Preferred Shares of Beneficial Interest, Series H

Liquidation Preference

$25.00

Coupon Rate

5.6%

Rate Type

Fixed

Annual Dividend

$1.40

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

March 11, 2024

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of The Company; Pari Passu With: 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, 5.15% Cumulative Preferred Shares Series F, 5.05% Cumulative Preferred Shares Series G; Senior To: Common Shares, 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

11,400,000

Prospectus Summary

Public Storage is offering 11,400,000 depositary shares (NYSE: PSAPrH), each representing 1/1,000th of a share of its 5.60% Cumulative Preferred Shares of Beneficial Interest, Series H, with a liquidation preference equivalent to $25.00 per depositary share. The fixed annual dividend of $1.40 per depositary share ($0.35 per quarter) is paid on March 31, June 30, September 30, and December 31, beginning March 31, 2019. Crucially, these dividends are cumulative — if Public Storage skips or reduces a payment, all arrears must be fully paid before any dividend can be paid on common shares, meaning missed payments accumulate and must eventually be made whole. As a REIT holding company, Public Storage's Series H Preferred Shares rank pari passu with 13 existing series of cumulative preferred shares and senior to common equity, but junior to all of the company's debt obligations. There is no bank regulatory capital call; however, the issuer retains an early redemption right solely to preserve its REIT tax status — a provision that could allow redemption before the standard March 11, 2024 call date if REIT qualification is at risk. On and after March 11, 2024, the company may redeem at $25.00 per depositary share plus accrued dividends at its option, with 30–60 days' notice. At the $25.00 offering price, the effective yield is 5.60% annually. Because Public Storage is a REIT, dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate applicable to C-corporation dividends, and are instead taxed as ordinary income at the investor's marginal rate, except to the extent characterized as capital gain dividends or eligible for the 20% REIT dividend deduction under the TCJA. Record dates are set 15–45 days before each quarterly payment date. The dividend stopper prevents Public Storage from paying dividends on common or junior shares — or repurchasing them — unless all accumulated Series H preferred dividends have been paid in full; six consecutive missed quarters also give preferred holders the right to elect two additional trustees.

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 H Preferred Shares, it cannot pay dividends on its common shares or any other junior or parity securities, and cannot repurchase or redeem those junior/parity shares.

Other Preferreds from Public Storage

Div Score Breakdown

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