Terms

Series

3.950% Cumulative Preferred Share of Beneficial Interest, Series Q

Liquidation Preference

$25.00

Coupon Rate

3.95%

Rate Type

Fixed

Annual Dividend

$0.9875

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

August 17, 2026

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Debt Obligations Of Public Storage (Senior Notes, Revolving Credit Facility, And Other Liabilities); Pari Passu With: Series E 4.900% Cumulative Preferred Shares, Series F 5.15% Cumulative Preferred Shares, Series G 5.05% Cumulative Preferred Shares, Series H 5.600% Cumulative Preferred Shares, Series I 4.875% Cumulative Preferred Shares, Series J 4.700% Cumulative Preferred Shares, Series K 4.75% Cumulative Preferred Shares, Series L 4.65% Cumulative Preferred Shares, Series M 4.125% Cumulative Preferred Shares, Series N 3.875% Cumulative Preferred Shares, Series O 3.900% Cumulative Preferred Shares, Series P 4.00% Cumulative Preferred Shares; Senior To: Common Shares Of Beneficial Interest, 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

5,000,000

Prospectus Summary

Public Storage (NYSE: PSA), the largest global self-storage REIT, is offering 5,000,000 Depositary Shares, each representing 1/1,000th of a share of its 3.950% Cumulative Preferred Share of Beneficial Interest, Series Q, with a liquidation preference equivalent to $25.00 per Depositary Share. The annual dividend is $0.9875 per Depositary Share ($0.246875 per quarter), paid at a fixed rate. These shares are cumulative, meaning that if Public Storage skips or reduces a dividend payment, all unpaid dividends accrue and must be paid in full before any dividend can be paid on common shares or redeemed — investors are protected against permanent loss of income, though payments may be deferred. The shares are not callable until August 17, 2026, at $25.00 per Depositary Share plus accrued dividends. The Series Q Preferred Shares rank pari passu with twelve existing series of Public Storage cumulative preferred shares (Series E through P) and senior to the company's common shares with respect to both distributions and liquidation proceeds. They are junior to all of Public Storage's debt obligations, including its senior notes and revolving credit facility. Because Public Storage is a Maryland REIT holding company operating its self-storage assets directly rather than through a bank subsidiary, there is no structural subordination concern typical of bank holding company preferred issues. The sole pre-call redemption right is a REIT-preservation call: if continuing to hold the Preferred Shares would jeopardize Public Storage's REIT tax status, the company may redeem them before August 17, 2026. This is a narrow, tax-driven trigger — not a Basel III or regulatory capital trigger — and is unlikely to be exercised absent an unusual change in tax law or ownership structure. At the $25.00 public offering price, the Series Q yields exactly 3.950% annually. Dividends are paid quarterly on March 31, June 30, September 30, and December 31, with the first payment on December 31, 2021 (pro-rated for the period from issuance). The record date is set by the Board of Trustees between 15 and 45 days before each payment date. Because Public Storage is a REIT, its dividends generally do not qualify for the preferential 15%/20% qualified dividend income (QDI) rate available on C-corporation dividends, nor for the corporate dividends-received deduction (DRD); they are taxed at ordinary income rates (with potential partial treatment as capital gain dividends or return of capital depending on annual REIT designations). The dividend stopper is triggered if any past-period cumulative distributions remain unpaid — at that point, all common dividends and junior share repurchases are blocked until arrears are cleared.

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 dividends on the Series Q Preferred Shares for all past periods, it is blocked from paying dividends on or repurchasing its common shares or any other junior/parity securities until all arrears are satisfied.

Other Preferreds from Public Storage

Div Score Breakdown

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