Terms

Series

Series S 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

January 1, 2017

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, 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 is offering Depositary Shares, each representing 1/1,000 of a share of its Series S Cumulative Preferred Share of Beneficial Interest, with a liquidation preference of $25.00 per Depositary Share. The coupon rate was not finalized at the time of this preliminary filing. The preferred shares are cumulative, meaning that any missed distributions accrue and must be paid in full before Public Storage can resume dividends on common or junior securities — providing holders meaningful income protection. The shares have no stated maturity and are callable at $25.00 per Depositary Share on or after January 2017. The Series S Preferred sits above Public Storage's common shares and equity shares in the capital stack and ranks pari passu with other outstanding series of preferred shares of beneficial interest. It is structurally junior to all of Public Storage's debt obligations. As a REIT holding company, Public Storage's preferred holders face the inherent subordination to creditors typical of equity securities. Notably, the issuer retains the right to redeem these shares before the January 2017 call date exclusively to preserve its REIT tax status — a relatively narrow but real early-redemption risk that investors should monitor if changes in tax law or company structure arise. Distributions are paid quarterly, with the first payment on March 31, 2012 (pro-rated 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 investors, nor the dividends-received deduction (DRD) for corporate holders — they are typically treated as ordinary income or return of capital, per REIT tax rules. The company's earnings and profits are allocated first to preferred shareholders before common. Investors not receiving distributions for six or more quarters gain limited voting rights, and cumulative arrears must be cleared before any junior distributions are made.

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 preferred distributions, it is restricted from paying dividends on its common shares or any securities junior to the Series S Preferred until all accrued and unpaid distributions are made current.

Other Preferreds from Public Storage

Div Score Breakdown

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