Terms

Series

4.700% Cumulative Preferred Share of Beneficial Interest, Series J

Liquidation Preference

$25.00

Coupon Rate

4.7%

Rate Type

Fixed

Annual Dividend

$1.18

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

November 15, 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: 5.375% Cumulative Preferred Shares Series V, 5.200% Cumulative Preferred Shares Series W, 5.200% Cumulative Preferred Shares Series X, 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, 5.600% Cumulative Preferred Shares Series H, 4.875% Cumulative Preferred Shares Series I; Senior To: Common Shares, Any 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

9,000,000

Prospectus Summary

Public Storage is offering 9,000,000 Depositary Shares, each representing 1/1,000th of a 4.700% Cumulative Preferred Share of Beneficial Interest, Series J, with a liquidation preference equivalent to $25.00 per Depositary Share and a fixed annual dividend of $1.175 per Depositary Share ($0.29375 quarterly). The shares are not callable before November 15, 2024 (except to preserve REIT status), after which Public Storage may redeem at $25.00 per Depositary Share plus accrued distributions. These are cumulative preferred shares, meaning any missed distributions accrue and must be paid in full before common shareholders receive anything — providing meaningful downside protection for income investors. The Series J Preferred Shares rank pari passu with twelve other outstanding series of Public Storage cumulative preferred shares (Series A through I, V, W, and X) and senior to common shares in both distributions and liquidation. They are junior to all of the company's debt obligations. As a holding company and operating REIT, Public Storage owns its self-storage assets directly, so there is no material structural subordination concern typical of bank holding company structures. The only early redemption provision is a REIT-qualification carve-out: if retaining the preferred shares would jeopardize Public Storage's REIT status, the company may redeem prior to November 2024 — a narrow and rarely triggered event. At the $25.00 offering price, the Series J Preferred Shares yield 4.70% annually, paid quarterly on March 31, June 30, September 30, and December 31, commencing March 31, 2020. Record dates are set by the Board between 15 and 45 days before each payment date. Because Public Storage is a REIT, dividends are generally taxed as ordinary income at the investor's marginal rate and do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available for C-corporation dividends, nor for the corporate dividends-received deduction (DRD) — investors should expect ordinary income treatment. Dividend payments can be interrupted only if the company has not satisfied full cumulative distributions for all past periods, which would simultaneously block any common share dividends.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Public Storage has not paid full cumulative distributions on the Series J Preferred Shares for all past periods, it cannot pay dividends on or repurchase its common shares or other junior/parity securities until arrears are cured.

Other Preferreds from Public Storage

Div Score Breakdown

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