Summary
This 8-K filing by Public Storage (PSA) on November 24, 2014, details the establishment of its 5.875% Cumulative Preferred Shares, Series A. The company has authorized the issuance of up to 100,000,000 preferred shares and has now classified 8,000 of these shares as Series A Preferred Shares. This filing outlines the key terms and conditions for these preferred shares, including their distribution rights, liquidation preferences, redemption features, and voting powers. For investors, the most crucial aspects are the fixed 5.875% annual dividend rate on a $25,000 per share stated value, which translates to substantial fixed income. The shares are cumulative, meaning any missed distributions must be paid before common shareholders receive distributions or liquidation proceeds. Redemption is not permitted before December 2, 2019, and thereafter occurs at the company's option at $25,000 per share plus accrued dividends. Importantly, these preferred shares have a liquidation preference senior to common shares, providing a layer of protection in the event of dissolution.
Key Highlights
- 1Public Storage (PSA) has officially established its 5.875% Cumulative Preferred Shares, Series A.
- 2A total of 8,000 shares of Series A Preferred Stock have been classified by the Board of Trustees.
- 3The Series A Preferred Shares carry a fixed annual dividend rate of 5.875% on a stated value of $25,000 per share.
- 4Distributions are cumulative, meaning any unpaid distributions must be paid in full before distributions can be made to common shareholders.
- 5These preferred shares have a liquidation preference of $25,000 per share plus all accumulated and unpaid distributions.
- 6Redemption by Public Storage is not permitted prior to December 2, 2019. After this date, shares are redeemable at $25,000 per share plus accrued dividends.
- 7The Series A Preferred Shares generally do not carry voting rights, except in cases of dividend defaults or to protect REIT qualification status.