Giant self storage REIT Public Storage (NYSE:PSA) has announced a new issue of perpetual preferred stock.
Recall that PSA just called for redemption PSA-Y which had a coupon of 6.375%. PSA must sell more preferreds OR raise the dividend for the common shares in order to continue to pay out REIT required 90% taxable income to equity holders.
It will be interesting to see what this coupon will be since the company is BBB+ rated by S&P and A3 by Moodys. I think it will come in around 5.50%.