Public Storage Announces Tax Treatment of 2017 Dividends

GLENDALE, Calif.–(BUSINESS WIRE)–Public Storage (NYSE:PSA) announced today the tax treatment of the
Company’s 2017 dividends. For the tax year ended December 31, 2017,
distributions for the PSA common stock and all the various series of
preferred stock were classified as follows:

          2017
1st Quarter     2nd Quarter     3rd Quarter     4th Quarter
Ordinary Income 99.9257 %

99.9195

%

100.0000

%

99.4648

%

Long-Term Capital Gain 0.0743 %

0.0805

%

0.0000

%

0.5352

%

       
Total 100.0000 %

100.0000

%

100.0000 %

100.0000

%

 

The ordinary income dividends do not constitute “qualified dividend
income.”

For the first and second quarters of 2017, the percentages of the
long-term capital gain that constitute unrecaptured section 1250 gain
are 0.2623% and 91.4554% respectively. Corporate shareholders subject to
IRC §291 should treat 20% of the unrecaptured section 1250 gain as
ordinary income.

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.

Alternative Minimum Tax

Alternative minimum tax adjustments are to be apportioned between a real
estate investment trust (“REIT”) and its shareholders under Internal
Revenue Code Section 59(d). Although regulations have not yet been
issued under that provision, based on regulations issued pursuant to a
similar provision of prior law and the legislative history of the
current provision, it appears that such alternative minimum tax
adjustments are to be apportioned to a REIT’s shareholders to the extent
that the REIT distributes its regular taxable income. It is the
Company’s policy to distribute all of its regular taxable income and
accordingly, all of the Company’s alternative minimum tax adjustments
are being apportioned to the Company’s shareholders.

The Company has determined that -0.2273% of each distribution to its
shareholders for the tax year ended December 31, 2017 consists of an
alternative minimum tax adjustment (i.e., for each $1 of dividend
reportable by a shareholder, $0.002273 represents a negative alternative
minimum tax adjustment). To determine your share of the Company’s
negative alternative minimum tax adjustment, multiply the aggregate
dollar amount of your reportable 2017 dividend from the Company (the sum
of the amounts shown in Boxes 1a and 2a of the Company’s 2017
Form 1099-DIV) by -0.002273.

If you are an individual, please refer to Internal Revenue Service Form
6251, Alternative Minimum Tax–Individuals. Your share of the alternative
minimum tax adjustment should be input as a negative amount in Part I,
Line 18 (depreciation on assets placed in service after 1986). If you
are a corporation, please refer to Internal Revenue Service Form 4626,
Alternative Minimum Tax–Corporations. Your share of alternative minimum
tax adjustments should be input as a negative amount on line 2a
(depreciation of post-1986 property).

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 fully
integrated, self-administered and self-managed real estate investment
trust that primarily acquires, develops, owns and operates self-storage
facilities. The Company’s headquarters are located in Glendale,
California. At September 30, 2017, the Company had interests in 2,374
self-storage facilities located in 38 states with approximately 157
million net rentable square feet in the United States and 220 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 wholly owned and operated approximately 28 million
rentable square feet of commercial space and had an interest in 395
apartments at September 30, 2017.

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

Contacts

Public Storage
Clemente Teng
(818) 244-8080, Ext. 1141