Giant storage REIT Public Storage (PSA) has announced they will be doing a new cumulative preferred stock offering.
Being a high investment grade rated REIT we all know this will be a low coupon–‘Dave in Texas’ is guessing 4.50%. PSA last came to the market on 6/8/2020 with a 4.625% issue and it is trading in the stratosphere at $26.94. This very high price may indicated an even lower coupon than Dave guesses.
The company did not announce a specific redemption of preferred shares with proceeds, but a potential redemption is mentioned in the ‘use of proceeds’ section.
It looks like the PSA-X and PSA-W issues which are both 5.20% coupons are top candidates for redemption.
The long list of PSA prefereds can be found here.
The preliminary prospectus for the new issue can be read here.
mcg was on this early with Dave in Texas chiming in.