Public Storage (NYSE:PSA) recently issued a new preferred stock earlier this month on December 2nd, Preferred Stock Class A whose details are below:
|Issuer||Public Storage Inc.|
As these shares have come on to the market they haven't had an opportunity to find their equilibrium yet and trade at a discount to the other preferred issuance from Public Storage offering up a higher yield or enhanced principal protection. The other two best preferreds to compare the Class A shares to is the Class U shares and the Class Z shares.
|Class A||Class U||Class Z|
|Gain/(Loss) on Call||$0.40||$0.40||($0.40)|
As illustrated above the Class A shares have advantages across the Class U and Class Z shares in the form of higher yield (both) and enhanced principal protection in the event the shares are called (vs. Class Z).
For those considering purchasing the preferred stock of Public Storage, the preferred series Class A should be on the top of the list. For those invested in the Class U or Class Z shares (and the other classes of preferred stock as well), consider swapping out to the Class A shares for a better risk / reward profile.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: The author is long Public Storage Preferred Class A