Terms

Series

7.000% Cumulative Preferred Shares of Beneficial Interest, Series N

Liquidation Preference

$25.00

Coupon Rate

7%

Rate Type

Fixed

Annual Dividend

$1.75

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

July 2, 2012

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of The Company; Pari Passu With: 7.500% Cumulative Preferred Shares Series V, 6.500% Cumulative Preferred Shares Series W, 6.450% Cumulative Preferred Shares Series X, 6.850% Cumulative Preferred Shares Series Y, 6.250% Cumulative Preferred Shares Series Z, 6.125% Cumulative Preferred Shares Series A, 7.125% Cumulative Preferred Shares Series B, 6.60% Cumulative Preferred Shares Series C, 6.18% Cumulative Preferred Shares Series D, 6.75% Cumulative Preferred Shares Series E, 6.45% Cumulative Preferred Shares Series F, 7.00% Cumulative Preferred Shares Series G, 6.95% Cumulative Preferred Shares Series H, 7.25% Cumulative Preferred Shares Series I, 7.25% Cumulative Preferred Shares Series K, 6.75% Cumulative Preferred Shares Series L, 6.625% Cumulative Preferred Shares Series M; 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

6,000,000

Prospectus Summary

Public Storage is offering 6,000,000 depositary shares, each representing 1/1,000th of a share of its 7.000% Cumulative Preferred Shares of Beneficial Interest, Series N, with a liquidation preference equivalent to $25.00 per depositary share and an annual dividend of $1.75 per depositary share ($0.4375 per quarter). The preferred shares are perpetual with no stated maturity, and the earliest optional redemption date is July 2, 2012 at $25.00 per depositary share. Because the dividends are cumulative, any unpaid distributions accrue and must be paid in full before Public Storage can resume dividends on common shares or other junior securities. The Series N Preferred Shares rank pari passu with 17 other outstanding series of Public Storage cumulative preferred shares and senior to the company's common shares with respect to distributions and liquidation proceeds. They are junior to all of Public Storage's debt obligations. The only pre-2012 redemption right is a REIT-preservation call: if retaining the preferred shares would jeopardize the company's REIT tax status under the Internal Revenue Code, Public Storage may redeem them before the standard first call date — a provision designed to protect the company's ability to pass through income tax-free, not to benefit bondholders, so investors should be aware this call could be exercised in rare but economically significant circumstances. At the $25.00 offering price, the Series N Preferred Shares yield exactly 7.00% annually, paid quarterly on March 31, June 30, September 30, and December 31 (commencing September 30, 2007, with the first payment prorated), to holders of record set 15–45 days before each payment date. Because Public Storage is a REIT, distributions are generally taxed as ordinary income at regular rates rather than at the preferential 15%/20% qualified dividend rate applicable to C-corporation dividends; they do not qualify for the dividends-received deduction for corporate holders. Dividend payments to common and junior shareholders are blocked whenever any cumulative distributions on the Series N (or other parity preferred series) remain unpaid.

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 distributions on the Series N Preferred Shares, it cannot declare or pay dividends on its common shares or any junior or parity securities, and cannot repurchase or redeem common or junior shares, until all arrearages are paid in full.

Other Preferreds from Public Storage

Div Score Breakdown

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