Public Storage Enters into Equity Distribution Agreement

Public Storage, a Maryland-based self-storage real estate investment trust, and its operating company PSOC have recently entered into an Equity Distribution Agreement. The agreement was established on December 2, 2024, with various sales agents and forward sellers as well as principals, to facilitate a potential offering of up to $2 billion worth of Public Storage’s common shares of beneficial interest.

The purpose of this “at the market” offering program is to raise funds for general corporate purposes, which could include potential acquisitions. This strategic move is aimed at enhancing the company’s financial flexibility and expanding its capital options to support its business plan across different capital market environments. It is also intended to complement the existing share repurchase program that still has the capacity to repurchase over 10.5 million shares.

The offering will involve the issuance of Common Shares under a prospectus supplement filed with the Securities and Exchange Commission (SEC) and will be carried out in compliance with the terms and conditions outlined in the Equity Distribution Agreement. The sales of Common Shares may occur through various methods, including “at the market” offerings, brokers’ transactions on the New York Stock Exchange, sales to market makers at prevailing market prices, and private negotiations, including block trades.

Additionally, the Equity Distribution Agreement allows for the possibility of entering into forward sale agreements with designated Forward Purchasers. These agreements would enable the Company to borrow and sell Common Shares, with the expectation of cash settlement or net-share settlement based on prevailing market conditions.

Proceeds from the offering and any forward sale agreements are anticipated to be channeled to PSOC for general corporate purposes, including potential self-storage facility acquisitions.

The compensation for each participating Manager in the offering will be determined based on mutually agreed commissions not exceeding 2.0% of the gross sales price of Common Shares sold. The Managers acting as Forward Sellers will receive commissions in the form of a reduction to the initial forward price under the related Forward Sale Agreements.

In conclusion, this Equity Distribution Agreement signifies a proactive step by Public Storage to strengthen its financial position and capitalize on available market opportunities while ensuring flexibility in its capital market strategies. The full details of the agreement can be found in the Form 8-K filing submitted to the SEC.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Public Storage’s 8K filing here.

About Public Storage

Public Storage, a member of the S&P 500 and FT Global 500, is a REIT that primarily acquires, develops, owns, and operates self-storage facilities. At December 31, 2023, we had: (i) interests in 3,044 self-storage facilities located in 40 states with approximately 218 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self Storage Limited (Euronext Brussels: SHUR), which owned 275 self-storage facilities located in seven Western European nations with approximately 15 million net rentable square feet operated under the Shurgard brand.