Public Storage preferreds price; Truist skews higher; Pennsylvania REIT drops

By James McCandless

San Antonio, Aug. 11 – The preferred market finished the Tuesday session with mixed results among top traders.

In primary activity, Public Storage priced a $200 million offering of $25-par series M cumulative preferred shares with a dividend of 4.125%.

Leading the secondary space, Truist Financial Corp.’s 4.75% series R non-cumulative perpetual preferred stock moved higher.

Elsewhere in the finance space, Synchrony Financial’s 5.625% series A non-cumulative perpetual preferreds gained.

Sector peer Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended the afternoon weaker.

Real estate investment trust Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares dropped.

Meanwhile, telecom services name AT&T, Inc.’s 4.75% series C perpetual preferred stock was seen improving.

Public Storage prices

In primary activity, Public Storage priced a $200 million offering of $25-par series M cumulative preferred shares with a dividend of 4.125%.

There is a $30 million greenshoe.

The deal, announced Monday morning, was upsized from an initial $100 million and came in under talks for a dividend in the 4.375% to 4.5% area.

BofA Securities, Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.

The preferreds are redeemable on or after Aug. 14, 2025 at par.

Truist higher

Leading the secondary space, Truist’s 4.75% series R non-cumulative perpetual preferred stock moved to higher ground.

The preferreds (NYSE: TFCPrR) were up 5 cents to close at $25.45 on volume of about 829,000 shares.

On Monday, the preferreds tacked on 7 cents.

Elsewhere in the finance space, Synchrony’s 5.625% series A non-cumulative perpetual preferreds gained ground.

The preferreds (NYSE: SYFPrA) rose 14 cents to close at $24.24 with about 338,000 shares trading.

Sector peer Ally Financial’s 8.125% series 2 fixed-to-floating rate trust preferred securities ended the afternoon in a weaker position.

The preferreds (NYSE: ALLYPrA) were docked 6 cents to close at $24.24 on volume of about 331,000 shares.

On Monday, the preferreds moved up 26 cents.

Penn REIT drops

Real estate investment trust Pennsylvania REIT’s 7.2% series C cumulative redeemable perpetual preferred shares dropped as the day ended.

The preferreds (NYSE: PEIPrC) were pushed down 53 cents to close at $4.55 with about 339,000 shares trading.

AT&T up

Meanwhile, telecom services provider AT&T’s ’s 4.75% series C perpetual preferred stock was seen improving.

The preferreds (NYSE: TPrC) gained 7 cents to close at $25.06 on volume of about 315,000 shares.

On Monday, the preferreds declined by 3 cents.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index capped the day up by 0.04%, doubling a 0.02% rise from early Tuesday trading.

The iShares US Preferred Stock ETF was down 4 cents to close at $36.13.

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