Public Storage Announces Tax Treatment of 2022 Dividends

Rhea-AI Summary

Public Storage (NYSE:PSA) has announced the tax treatment of 2022 dividends, providing essential information for shareholders. For the year ending December 31, 2022, ordinary dividends were classified as follows: 29.6070% for Q1 and Q2, 39.6574% for Q3, and 0.0000% for Q4. Additionally, capital gain distributions were 70.3930% for Q1 and Q2, 60.3426% for Q3, and 100.0000% for Q4. Notably, ordinary dividends do not qualify as “qualified dividend income.” Shareholders are advised to consult tax advisors for clarity. This preliminary report is subject to adjustments based on final tax filings.

Positive

• Ordinary dividends provide a steady income stream for shareholders.
• Significant capital gain distributions indicate strong performance.

Negative

• Ordinary dividends are not classified as 'qualified dividend income', potentially affecting tax obligations.
• Certain gains are taxed as ordinary income for corporate shareholders.

GLENDALE, Calif.--(BUSINESS WIRE)-- Public Storage (NYSE:PSA) announced today the tax treatment of the Company’s 2022 dividends. For the tax year ended December 31, 2022, distributions for the PSA common stock and all the various series of preferred stock were classified as follows:

	2022
	1st Quarter		2nd Quarter		8/4/2022 Special		3rd Quarter		4th Quarter
Ordinary Dividends	29.6070%		29.6070%		39.6574%		0.0000%		100.0000%
Capital Gain Distributions	70.3930%		70.3930%		60.3426%		100.0000%		0.0000%
Total	100.0000%		100.0000%		100.0000%		100.0000%		100.0000%

The ordinary dividends are not “qualified dividend income.” For shareholders other than corporations, the ordinary dividends are “qualified REIT dividends” in determining qualified business income.

The company designated the capital gain distributions in accordance with IRS rules.

The percentage of the long-term capital gain that constitutes unrecaptured section 1250 gain is 10.0915%.

Corporate shareholders subject to IRC §291 should treat 20% of the unrecaptured section 1250 gain as ordinary income.

All of the capital gain is Section 897 capital gain for foreign shareholders.

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. At September 30, 2022, we had: (i) interests in 2,836 self-storage facilities located in 40 states with approximately 202 million net rentable square feet in the United States and (ii) a 35% common equity interest in Shurgard Self-Storage SA (Euronext Brussels:SHUR), which owned 259 self-storage facilities located in seven Western European nations with approximately 14 million net rentable square feet operated under the Shurgard® brand. Our headquarters are located in Glendale, California.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005846/en/

Ryan Burke

(818) 244-8080, Ext. 1141

Source: Public Storage

FAQ

What are the tax classifications for Public Storage's 2022 dividends?

Public Storage's 2022 ordinary dividends were classified at 29.6070% for Q1 and Q2, 39.6574% for Q3, and 0.0000% for Q4. Capital gains were reported at 70.3930% for Q1 and Q2, 60.3426% for Q3, and 100.0000% for Q4.

Are the ordinary dividends from Public Storage considered qualified?

No, the ordinary dividends are not considered 'qualified dividend income' for shareholders other than corporations.

When was the last dividend payment by Public Storage?

The last dividend payment for Public Storage in 2022 was made on August 4, classified as a special dividend.

What percentage of the capital gain is classified as unrecaptured section 1250 gain?

The percentage of the long-term capital gain that constitutes unrecaptured section 1250 gain is 10.0915%.