PS BUSINESS PARKS, INC. Exhibit 12: Statement re: COMPUTATION of Ratio of Earnings to Fixed Charges
Nine Months Ended September 30, ----------------------------------------- 2002 2001 ----------------- ----------------- Net income...................................................... $ 44,018,000 $ 37,144,000 Minority interest............................................... 24,256,000 19,743,000 Interest expense................................................ 4,098,000 932,000 Equity income from sale of joint venture properties............. (265,000) - ----------------- ----------------- Earnings available to cover fixed charges....................... $ 72,107,000 $ 57,819,000 ================= ================= Fixed charges (1)............................................... $ 4,386,000 $ 1,933,000 Preferred distributions......................................... 24,720,000 15,710,000 ----------------- ----------------- Combined fixed charges and preferred distributions.............. $ 29,106,000 $ 17,643,000 ================= ================= Ratio of earnings to fixed charges.............................. 16.44 29.91 ================= ================= Ratio of earnings to combined fixed charges and preferred distributions.................................................. 2.48 3.28 ================= =================
Years Ended December 31, -------------------------------------------------------------------------------- 2001 2000 1999 1998 1997 -------------- -------------- -------------- -------------- -------------- Net income......................... $ 49,870,000 $ 51,181,000 $ 41,255,000 $ 29,400,000 $ 3,836,000 Minority interest.................. 27,489,000 26,741,000 16,049,000 11,208,000 8,566,000 Interest expense................... 1,715,000 1,481,000 3,153,000 2,361,000 1,000 -------------- -------------- -------------- -------------- -------------- Earnings available to cover fixed charges......................... $ 79,074,000 $ 79,403,000 $ 60,457,000 $ 42,969,000 $ 12,403,000 ============== ============== ============== ============== ============== Fixed charges (1).................. $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000 Preferred distributions............ 22,961,000 17,273,000 7,562,000 - - -------------- -------------- -------------- -------------- -------------- Combined fixed charges and preferred distributions................... $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000 ============== ============== ============== ============== ============== Ratio of earnings to fixed charges. 28.18 27.42 14.60 16.34 12,403 ============== ============== ============== ============== ============== Ratio of earnings to combined fixed charges and preferred distributions................... 3.07 3.94 5.17 16.34 12,403 ============== ============== ============== ============== ==============
(1) Fixed charges include interest expense plus capitalized interest. PS BUSINESS PARKS, INC. Exhibit 12 Statement re: COMPUTATION of Ratio of Earnings to Fixed Charges Supplemental disclosure of Ratio of Funds from Operations ("FFO") to fixed charges:
Nine Months Ended September 30, ----------------------------------------- 2002 2001 ----------------- ----------------- FFO............................................................. $ 77,405,000 $ 70,049,000 Interest expense................................................ 4,098,000 932,000 Minority interest in income - preferred units................... 13,237,000 9,696,000 Preferred dividends............................................. 11,483,000 6,014,000 ----------------- ----------------- Adjusted FFO available to cover fixed charges................... $ 106,223,000 $ 86,691,000 ================= ================= Fixed charges (1)............................................... $ 4,386,000 $ 1,933,000 Preferred distributions......................................... 24,720,000 15,710,000 ----------------- ----------------- Combined fixed charges and preferred distributions.............. $ 29,106,000 $ 17,643,000 ================= ================= Ratio of FFO to fixed charges................................... 24.22 44.85 ================= ================= Ratio of FFO to combined fixed charges and preferred distributions.................................................. 3.65 4.91 ================= =================
Years Ended December 31, --------------------------------------------------------------------------------- 2001 2000 1999 1998 1997 --------------- --------------- --------------- --------------- --------------- FFO................................ $ 93,568,000 $ 85,977,000 $ 76,353,000 $ 57,430,000 $ 17,597,000 Interest expense................... 1,715,000 1,481,000 3,153,000 2,361,000 1,000 Minority interest in income - preferred units................. 14,107,000 12,185,000 4,156,000 - - Preferred dividends................ 8,854,000 5,088,000 3,406,000 - - --------------- --------------- --------------- --------------- --------------- Adjusted FFO available to cover fixed charges................... $ 118,244,000 $ 104,731,000 $ 87,068,000 $ 59,791,000 $ 17,598,000 =============== =============== =============== =============== =============== Fixed charges (1).................. $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000 Preferred distributions............ 22,961,000 17,273,000 7,562,000 - - --------------- --------------- --------------- --------------- --------------- Combined fixed charges and preferred distributions................... $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000 =============== =============== =============== =============== =============== Ratio of FFO to fixed charges...... 42.14 36.16 21.02 22.74 17,598 =============== =============== =============== =============== =============== Ratio of FFO to combined fixed charges and preferred distributions................... 4.59 5.19 7.44 22.74 17,598 =============== =============== =============== =============== ===============
(1) Fixed charges include interest expense plus capitalized interest.