REIT PS Business Parks (PSB) has priced their new, previously announced, preferred stock.
The fixed rate coupon has been set at 4.875%. This pricing doesn’t seem logical given that sister company Public Storage (PSA) just sold a new issue at the same coupon. Public Storage is rated a notch better than PS Business Parks. In the end it is what it is—wish they would price like I want them too.
It is amazing how strong the new Public Storage 4.875% issue (PSA-I) has traded which may well have contributed to this low coupon from PS Business Parks. The Public Storage issue closed at $26.26 today.
The issue will trade OTC Grey market tomorrow under ticker PSPBZ. At the right price we will purchase some for a flip–maybe we can squeeze 30-40 cents out of it.
The SEC pricing term sheet has not yet been filed but the company press release can be read here.
All true but the point is the 5.20’s hit rock bottom of approx 18.50 in dec 2018.
1 way I ‘group’ pfd’s is by where they trade. PS Buss Parks trade near the top tier just a notch below. But dec’s trading show real weakness AND…the question is can you live on 4 7/8’s if rates move against us?
And PSA-G, with a 5.05% coupon, is at $26.950.