PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratios)
                 
    Three Months Ended  
    March 31,  
    2007     2006  
Income from continuing operations
   $ 18,591     $ 15,859  
Minority interests in continuing operations
     3,629       4,349  
Interest expense
     1,107       513  
 
            
Earnings from continuing operations available to cover fixed charges
   $ 23,327     $ 20,721  
 
            
Fixed charges (1)
   $ 1,107     $ 513  
Preferred stock dividends
     12,668       11,255  
Preferred partnership distributions
     1,599       2,781  
 
            
Combined fixed charges and preferred distributions
   $ 15,374     $ 14,549  
 
            
Ratio of earnings from continuing operations to fixed charges
     21.1       40.4  
 
            
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions
     1.5       1.4  
 
            
                                         
    2006     2005     2004     2003     2002  
Income from continuing operations
   $ 62,937     $ 59,674     $ 46,564     $ 46,326     $ 45,916  
Minority interests in continuing operations
     16,268       16,262       24,785       29,638       28,271  
Interest expense
     2,575       1,330       3,054       4,015       5,324  
 
                              
Earnings from continuing operations available to cover fixed charges
   $ 81,780     $ 77,266     $ 74,403     $ 79,979     $ 79,511  
 
                              
Fixed charges (1)
   $ 2,575     $ 1,330     $ 3,054     $ 4,015     $ 5,612  
Preferred stock dividends
     47,933       43,011       33,020       15,784       15,412  
Preferred partnership distributions
     11,155       10,651       20,245       19,240       17,927  
 
                              
Combined fixed charges and preferred distributions
   $ 61,663     $ 54,992     $ 56,319     $ 39,039     $ 38,951  
 
                              
Ratio of earnings from continuing operations to fixed charges
     31.8       58.1       24.4       19.9       14.2  
 
                              
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions
     1.3       1.4       1.3       2.0       2.0  
 
                              
 
(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
(Unaudited, in thousands, except ratio data)
Supplemental Disclosure of Ratio of Funds from Operations (“FFO”) to Fixed Charges:
                 
    Three Months Ended  
    March 31,  
    2007     2006  
FFO
   $ 29,593     $ 26,687  
Interest expense
     1,107       513  
Minority interest in income — preferred units
     1,599       2,781  
Preferred stock dividends
     12,668       11,255  
 
            
FFO available to cover fixed charges
   $ 44,967     $ 41,236  
 
            
Fixed charges (2)
   $ 1,107     $ 513  
Preferred stock dividends
     12,668       11,255  
Preferred partnership distributions
     1,599       2,781  
 
            
Combined fixed charges and preferred distributions paid
   $ 15,374     $ 14,549  
 
            
Ratio of adjusted FFO to fixed charges
     40.6       80.4  
 
            
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid
     2.9       2.8  
 
            
                                         
    2006     2005     2004     2003     2002  
FFO (1)
   $ 106,235     $ 102,463     $ 97,214     $ 97,448     $ 104,543  
Interest expense
     2,575       1,330       3,054       4,015       5,324  
Minority interest in income — preferred units
     11,155       10,651       20,245       19,240       17,927  
Preferred stock dividends
     47,933       43,011       33,020       15,784       15,412  
 
                              
FFO available to cover fixed charges
   $ 167,898     $ 157,455     $ 153,533     $ 136,487     $ 143,206  
 
                              
Fixed charges (2)
   $ 2,575     $ 1,330     $ 3,054     $ 4,015     $ 5,612  
Preferred stock dividends (3)
     44,553       43,011       31,154       15,784       15,412  
Preferred partnership distributions (3)
     9,789       10,350       17,106       19,240       17,927  
 
                              
Combined fixed charges and preferred distributions paid
   $ 56,917     $ 54,691     $ 51,314     $ 39,039     $ 38,951  
 
                              
Ratio of adjusted FFO to fixed charges
     65.2       118.4       50.3       34.0       25.5  
 
                              
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid
     2.9       2.9       3.0       3.5       3.7  
 
                              
 
(1)   FFO has been adjusted to include the effect of impairment charges.
 
(2)   Fixed charges include interest expense plus capitalized interest.
 
(3)   Excludes EITF Topic D-42 distributions.