Public Storage Announces Tax Treatment of 2018 Dividends

GLENDALE, Calif.--(BUSINESS WIRE)-- Public Storage (NYSE:PSA) announced today the tax treatment of the Company’s 2018 dividends. For the tax year ended December 31, 2018, distributions for the PSA common stock and all the various series of preferred stock were classified as follows:

The ordinary income dividends are not “qualified dividend income” for purposes of determining dividends that are taxed as net capital gain.

For shareholders other than corporations the ordinary dividends are “qualified REIT dividends” under the new qualified business income provisions enacted as part of the Tax Cuts and Jobs Act of 2017.

For the fourth quarter of 2018, the percentage of the long-term capital gain that constitutes unrecaptured section 1250 gain is 11.46768%. Corporate shareholders subject to IRC §291 should treat 20% of the unrecaptured section 1250 gain as ordinary income.

In prior years Public Storage has apportioned its alternative minimum tax adjustments between the REIT and its shareholders under section 59(d) of the Internal Revenue Code. The Tax Cuts and Jobs Act of 2017 repealed the alternative minimum tax provisions related to corporations. Due to this repeal there are no adjustments to be apportioned between Public Storage and its shareholders after 2017.

This release is based on the preliminary results of work on the Company’s tax filings and is subject to correction or adjustment when the filings are completed. The Company is releasing information at this time to aid those required to distribute Forms 1099 on the Company’s distributions. No material change in the classification is expected.

If you have questions, please consult your tax advisor for further guidance.

Company Information

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. The Company’s headquarters are located in Glendale, California. At September 30, 2018, we had interests in 2,418 self-storage facilities located in 38 states with approximately 161 million net rentable square feet in the United States and 228 storage facilities located in seven Western European nations with approximately 12 million net rentable square feet operated under the “Shurgard” brand. The Company also owns a 42% common equity interest in PS Business Parks, Inc. (NYSE:PSB) which owned and operated approximately 28 million rentable square feet of commercial space at September 30, 2018.

Additional information about Public Storage is available on the Internet. The Company’s website is PublicStorage.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190115006004/en/

Public Storage
Ryan Burke
(818) 244-8080, Ext. 1141

Source: Public Storage