Terms

Series

4.125% Cumulative Preferred Share of Beneficial Interest, Series M

Liquidation Preference

$25.00

Coupon Rate

4.125%

Rate Type

Fixed

Annual Dividend

$1.03

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

August 14, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of The Company; Pari Passu With: 5.200% Cumulative Preferred Shares Series W, 5.200% Cumulative Preferred Shares Series X, 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, 4.700% Cumulative Preferred Shares Series J, 4.75% Cumulative Preferred Shares Series K, 4.65% Cumulative Preferred Shares Series L; 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

8,000,000

Prospectus Summary

Public Storage (NYSE: PSA), the largest U.S. self-storage REIT, is offering 8,000,000 Depositary Shares, each representing 1/1,000th of a 4.125% Cumulative Preferred Share of Beneficial Interest, Series M, with a liquidation preference of $25.00 per Depositary Share and an annual dividend of $1.03125 ($0.2578125 per quarter). The shares are not redeemable at the issuer's option until August 14, 2025, at which point Public Storage may call them at $25.00 per Depositary Share plus accrued distributions. Because the Series M is cumulative, any missed distributions accrue and must be paid in full before Public Storage can pay dividends on common shares or repurchase junior securities — providing meaningful, though not absolute, protection to preferred holders. The Series M Preferred Shares rank pari passu with 13 existing series of Public Storage cumulative preferred shares (Series B, C, D, E, F, G, H, I, J, K, L, W, and X) and senior to common shares and all other junior beneficial interest shares. As an operating REIT issuer (not a holding company), there is no structural subordination concern from an intermediate holding company layer; however, the preferred shares are effectively subordinate to all of Public Storage's debt obligations, including its senior notes and revolving credit facility. There is a REIT-preservation call provision allowing redemption prior to August 2025 if necessary to maintain REIT status — a low-probability but real trigger that could result in earlier-than-expected redemption at $25.00. At the $25.00 offering price, the Series M yields exactly 4.125% annually, paid quarterly on March 31, June 30, September 30, and December 31 (commencing December 31, 2020), with record dates set 15–45 days before each payment date by the Board of Trustees. Because Public Storage is a REIT, dividends are generally taxed as ordinary income at the investor's marginal rate rather than at the preferential 15%/20% qualified dividend income (QDI) rate applicable to C-corporation dividends; accordingly, QDI and DRD treatment do not generally apply, though portions may be designated as capital gain dividends. The dividend stopper prevents any distributions on common shares or junior securities if Series M cumulative distributions are in arrears.

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 M Preferred Shares for all past periods, it is prohibited from paying dividends on or repurchasing its common shares or any other junior or parity shares of beneficial interest.

Other Preferreds from Public Storage

Div Score Breakdown

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