Terms

Series

Series P

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 1, 2015

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Public Storage; Pari Passu With: Other Series Of Preferred Shares; Senior To: Common Shares, Equity Shares

Regulatory (Basel III) Call

Yes

Tax Classification

Reit Passthrough

Qualifies for QDI

No

Qualifies for DRD

No

Depositary Share Fraction

0.001

Prospectus Summary

Public Storage Series P is a perpetual cumulative preferred share of beneficial interest issued by Public Storage (NYSE: PSA), a self-administered REIT, offered as depositary shares each representing 1/1,000th of an underlying preferred share with a liquidation preference equivalent to $25.00 per depositary share. The coupon rate was not yet fixed at the time of the preliminary prospectus filing. Because the shares are cumulative, any missed quarterly distributions accrue and must be paid in full before Public Storage can resume distributions to common shareholders — providing holders a meaningful protection against temporary cash flow disruptions. The Series P shares have no stated maturity, no sinking fund, and are not convertible into any other securities. The Series P Preferred Shares rank senior to Public Storage's common shares and equity shares, and pari passu with all other series of the company's outstanding preferred shares, but junior to all of Public Storage's debt obligations. As a holding company issuing directly at the entity level (Public Storage is a trust, not a bank holding company), there is no structural subordination to a subsidiary. Importantly, the issuer retains the right to redeem the preferred shares prior to October 2015 solely to preserve its REIT qualification — a standard REIT regulatory call. If retaining the preferred shares were to jeopardize Public Storage's tax status as a REIT, the company could redeem them at $25.00 per depositary share plus accrued distributions before the standard call date. The exact coupon and annual dividend per depositary share were not finalized at the time of this preliminary filing. Distributions are paid quarterly, with the first payment scheduled for December 31, 2010 (prorated from issuance). As a REIT, Public Storage's distributions 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 REIT distributions. Preferred shareholders gain voting rights if Public Storage fails to pay distributions for six or more consecutive quarters, serving as a structural backstop but not a contractual guarantee against interruption.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Public Storage fails to pay cumulative distributions for six or more quarters, preferred holders gain certain voting rights; no explicit stopper on common dividends described in the provided text.

Other Preferreds from Public Storage

Div Score Breakdown

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