PSB - Public Storage to distribute to shareholders $2.3B gain from PS Business Parks sale

Public Storage (NYSE:PSA), which holds 41% common equity interest in PS Business Parks (PSB), plans to distribute to its shareholders the $2.3B tax gain it expects to recognize from the sale of PSB to Blackstone (BX), the self-storage REIT said Monday. As a result of the pending sale, Public Storage (PSA) estimated that its core FFO would by reduced by ~$101M pro rata share of PS Business Park's core FFO of 2021, which comprised ~4% of Public Storage's total core FFO during the year. PSA stock is slipping 0.8% in early Monday trading. The transaction is expected to close in Q3 2022. Public Storage (PSA) has agreed to vote its shares of PS Business Parks (PSB), which represent 25.9% of the outstanding shares, in favor of the sale. In February, Public Storage (PSA) issued 2022 guidance that exceeded consensus.

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Public Storage to distribute to shareholders $2.3B gain from PS Business Parks sale