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Public Storage's Preferred Shares Yield Above 6% Amid Decline

Public Storage's preferred shares are yielding above 6% as they trade at a significant discount. Investors should consider the implications for stock prices.

Date: 
AI Rating:   5

Yield Analysis: The report highlights that Public Storage's 4.625% Dep Shares of Cumulative Preferred Share Series L (PSA.PRL) has a yield exceeding 6% based on its quarterly dividend of $1.1563. This yield is notably lower than the average of 7.81% observed in the Real Estate preferred stock sector.

Discount to Liquidation Preference: Additionally, PSA.PRL is trading at a 21.88% discount to its liquidation preference amount, while the average discount in the Real Estate category stands at 12.20%. This substantial discount might denote lower investor confidence or increased perceived risk.

Current Trading Status: As of Monday's trading, PSA.PRL shares are flat, while the common shares of Public Storage (PSA) show a modest increase of about 1.1%. Maintaining a flat trading status while the common shares rise could indicate mixed investor sentiment regarding the preferred shares.

Stocks:  PSA