Public Storage buys back some of its 6.85% preferreds for $9.2 million

By Susanna Moon

Chicago, Aug. 9 - Public Storage repurchased 400,000 depositary shares of its 6.85% series Y cumulative preferred stock for $9.2 million in a privately negotiated deal on Aug. 3, according to a 10-Q filing with the Securities and Exchange Commission for the quarter ended June 30.

The company said it will allocate $800,000 from preferred shareholders to common shareholders, representing the excess of the original issuance proceeds over the amount paid to redeem the securities, in the three months ending Sept. 30.

Public Storage also said that several series of its preferred securities are callable as of June 30.

The preferred series have annual dividend rates ranging from 6.125% to 7.125% and have a redemption value of about $1 billion.

The timing for redemption of the preferreds would depend on whether market conditions improve so that the company can issue new shares at a lower cost than the shares being redeemed, according to the filing.

The Glendale, Calif., real estate investment trust acquires, develops, owns and operates self-storage facilities.

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