Public Storage might redeem preferreds through 2021

Chicago, Feb. 25 – Public Storage said they are thinking about redeeming some of their preferred stock as they move through the year on their quarterly conference call on Thursday morning.

The company said that preferred stock it issued in 2016 is redeemable soon, as much of it was issued with a perpetual maturity date and the first five-year calls are approaching, according to Tom Boyle, senior vice president and chief financial officer for the company.

When issued, the preferred stock was “pretty darn attractive,” he said, but the environment has changed and it might represent an opportunity to redeem some of the preferred stock.

The company did redeem $300 million of 5.4% preferred stock in January, he pointed out.

The company is looking to either issue new preferred stock at lower rates or new unsecured debt to finance the business or fund redemption activity going forward.

Public Storage is a Glendale, Calif., real estate investment trust that acquires, develops, owns and operates self-storage facilities.

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