Self-Storage REIT Public Storage Sells New Preferred Shares

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Giant self-storage REIT Public Storage (NYSE:PSA) has sold a new cumulative, redeemable preferred stock issue.

Public Storage is a large and respected operator of self-storage properties worldwide and the organization’s financials appear impeccable. The company stands out as a rare REIT that generates about a billion dollars per year in net income, while carrying virtually no debt.

In addition, Public Storage’s balance sheet looks to be “bullet proof.”

Public Storage has a total of 12 preferred stock issues outstanding (including its new one) with coupons ranging from 5.20% to 6.375%, so there is a need to take a look at the full range of outstanding issues to determine if this new issue presents offers an attractive current yield compared to its previous issues already outstanding.

The new issue has a coupon of 5.40% and has begun trading under the temporary ticker of PBSTP on the OTC Grey Market. The issue traded between $24.75 and $25.00 before closing at $24.85 last Friday, Jan. 15.

If you are interested in purchasing shares on the OTC Grey Market, read our short primer on how best to do so.

Details of this new offering are here.

To compare all of the issues that PSA has outstanding, you can access our “swaps” list, which compares various issues from the same issuer to determine which ones pay superior current yields and might be preferred to current holdings.

This new issue from Public Storage seems to offer rock-solid quality, so people who are looking for a modest yield from a bulletproof issuer should consider this issue. The price on this issue is likely to move up or down with interest rates, since it is a perpetual issue that lacks a maturity date. Thus, an investor’s capital will rise and fall, but at least the dividend is safe.

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