Public Storage Issues $900M Senior Notes

What Happened

• Public Storage Operating Company (PSOC), a subsidiary of Public Storage (PSA), completed a public offering on July 20, 2026 of $400 million 4.700% Senior Notes due 2032 and $500 million 5.150% Senior Notes due 2036 (total $900 million). The notes are issued by PSOC and guaranteed by Public Storage and were issued under a supplemental indenture to PSOC’s existing indenture.

Key Details

• Principal amounts and rates: $400M 4.700% notes maturing Feb 1, 2032; $500M 5.150% notes maturing Aug 15, 2036. Interest accrues from July 20, 2026.
• Interest payment dates: 2032 Notes pay semi-annually Feb 1 and Aug 1 (first payment Feb 1, 2027); 2036 Notes pay semi-annually Feb 15 and Aug 15 (first payment Feb 15, 2027).
• Status and ranking: Notes are PSOC’s direct, unsecured, unsubordinated obligations and rank equally with PSOC’s other unsecured, unsubordinated debt.
• Redemption and covenants: Company may redeem at make-whole prices; near-maturity redemptions are at 100% of principal. If the planned acquisition of National Storage Affiliates Trust (NSA Acquisition) is not consummated by the Outside Date (Dec 16, 2026, unless extended) or the Company elects not to pursue it, PSOC must redeem outstanding notes at 101% of principal. The indenture also limits certain additional debt and transactions and requires PSOC to maintain total unencumbered assets of at least 125% of total unsecured indebtedness (with specified exceptions).

Why It Matters

• The offering increases PSOC’s consolidated unsecured debt by $900 million, providing capital but also adding fixed interest costs and contractual covenants. For investors, key points to watch are interest expense, any use of proceeds (disclosed elsewhere), compliance with the indenture’s covenants (including the 125% unencumbered-asset requirement), and the status of the NSA Acquisition because it triggers a special redemption provision if not completed.