Terms

Series

Series R Cumulative Preferred Share of Beneficial Interest

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

July 1, 2016

First Call Price

$25.00

Capital Stack Ranking

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

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 is offering depositary shares, each representing 1/1,000 of a share of its Series R Cumulative Preferred Share of Beneficial Interest, with a liquidation preference of $25.00 per depositary share. The coupon rate was not yet specified at the time of this preliminary filing. The preferred shares are cumulative, meaning any unpaid quarterly distributions accrue and must be paid in full before Public Storage can resume distributions to common shareholders. The shares are perpetual with no stated maturity and are not convertible. The Series R Preferred sits above Public Storage's common shares in the capital stack and ranks on par with its other outstanding preferred series, but is subordinate to all of the company's debt obligations. As a REIT holding company issue, preferred holders are structurally subordinated to operating-level creditors. Notably, the issuer may redeem the preferred before the scheduled July 2016 call date solely if redemption is required to preserve Public Storage's REIT tax status — a relatively narrow trigger that protects investors from early redemption in most normal market scenarios. The coupon rate was undisclosed in this preliminary prospectus, so the effective yield at par cannot be calculated. Distributions are paid quarterly, with the first payment on September 30, 2011 (prorated). Because Public Storage is a REIT, distributions generally do not qualify for the 15%/20% preferential qualified dividend income (QDI) rate available to individuals, nor for the dividends-received deduction (DRD) for corporate holders — they are typically taxed as ordinary income. If Public Storage fails to pay distributions for six or more consecutive quarters, preferred holders gain limited voting rights, which serves as the primary protective mechanism against sustained dividend 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 preferred distributions for six or more quarters, holders gain limited voting rights; standard cumulative preferred provisions would block common and junior preferred dividends while Series R distributions are in arrears, though explicit stopper language is not quoted in the provided excerpt.

Other Preferreds from Public Storage

Div Score Breakdown

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