Summary
Public Storage (PSA) announced on August 10, 2021, the pricing of its public offering for 3.950% Cumulative Preferred Share of Beneficial Interest, Series Q. The company intends to use the net proceeds from this offering for general corporate purposes, notably including the potential redemption of its 4.900% Cumulative Preferred Shares, Series E, which are redeemable on October 14, 2021. This move aligns with PSA's ongoing strategy to reduce its overall cost of capital. This issuance is a continuation of Public Storage's successful capital management, as since 2015, the company has redeemed $4.9 billion of preferred equity, lowering its average cost by approximately 123 basis points to 4.6%. Concurrently, PSA has issued $5 billion in unsecured debt at an average rate of 1.9% to fund strategic growth and leverage free cash flow, demonstrating a proactive approach to financial structuring and cost optimization.
Key Highlights
- 1Public Storage priced a public offering of 3.950% Cumulative Preferred Share of Beneficial Interest, Series Q.
- 2Proceeds will be used for general corporate purposes, including the potential redemption of Series E Preferred Shares.
- 3Series E Preferred Shares are redeemable on October 14, 2021.
- 4This offering is part of PSA's strategy to lower its overall cost of capital.
- 5Since 2015, PSA has redeemed $4.9 billion of preferred equity, reducing the average cost by 123 basis points to 4.6%.
- 6Over the same period, PSA issued $5 billion in unsecured debt at an average rate of 1.9% to fund growth.