PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
                                 
    Three Months Ended   Nine Months Ended
    September 30,   September 30,
    2007   2006   2007   2006
Income from continuing operations
   $ 17,023     $ 14,736     $ 52,152     $ 46,061  
Minority interests in continuing operations
     3,213       5,223       9,888       13,450  
Interest expense
     1,009       628       3,128       1,658  
 
                        
Earnings from continuing operations available to cover fixed charges
   $ 21,245     $ 20,587     $ 65,168     $ 61,169  
 
                        
Fixed charges
   $ 1,009     $ 628     $ 3,128     $ 1,658  
Preferred stock dividends
     12,756       11,258       38,181       34,769  
Preferred partnership distributions
     1,752       4,038       5,103       9,600  
 
                        
Combined fixed charges and preferred distributions
   $ 15,517     $ 15,924     $ 46,412     $ 46,027  
 
                        
Ratio of earnings from continuing operations to fixed charges
     21.1       32.8       20.8       36.9  
 
                        
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions
     1.4       1.3       1.4       1.3  
 
                        
                                         
    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   Nine Months Ended
    September 30,   September 30,
    2007   2006   2007   2006
FFO
   $ 31,013     $ 26,847     $ 90,597     $ 78,764  
Interest expense
     1,009       628       3,128       1,658  
Minority interest in income — preferred units
     1,752       4,038       5,103       9,600  
Preferred stock dividends
     12,756       11,258       38,181       34,769  
 
                        
FFO available to cover fixed charges
   $ 46,530     $ 42,771     $ 137,009     $ 124,791  
 
                        
Fixed charges
   $ 1,009     $ 628     $ 3,128     $ 1,658  
Preferred stock dividends (3)
     12,756       11,258       38,181       33,111  
Preferred partnership distributions (3)
     1,752       2,672       5,103       8,234  
 
                        
Combined fixed charges and preferred distributions paid
   $ 15,517     $ 14,558     $ 46,412     $ 43,003  
 
                        
Ratio of adjusted FFO to fixed charges
     46.1       68.1       43.8       75.3  
 
                        
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid
     3.0       2.9       3.0       2.9  
 
                        
                                         
    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.