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     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
Net income
   $ 17,380     $ 16,538     $ 33,938     $ 35,129  
Minority interests
     3,391       3,046       6,491       6,675  
Interest expense
     990       1,012       1,983       2,119  
 
                        
Earnings from operations available to cover fixed charges
   $ 21,761     $ 20,596     $ 42,412     $ 43,923  
 
                        
Fixed charges
   $ 990     $ 1,012     $ 1,983     $ 2,119  
Preferred stock dividends
     12,757       12,757       25,513       25,425  
Preferred partnership distributions
     1,752       1,752       3,504       3,351  
 
                        
Combined fixed charges and preferred distributions
   $ 15,499     $ 15,521     $ 31,000     $ 30,895  
 
                        
Ratio of earnings from operations to fixed charges
     22.0       20.4       21.4       20.7  
 
                        
Ratio of earnings from operations to combined fixed charges and preferred distributions
     1.4       1.3       1.4       1.4  
 
                        
                                         
    2007     2006     2005     2004     2003  
Income from continuing operations
   $ 68,666     $ 62,937     $ 59,674     $ 46,564     $ 46,326  
Minority interests in continuing operations
     13,009       16,268       16,262       24,785       29,638  
Interest expense
     4,130       2,575       1,330       3,054       4,015  
 
                              
Earnings from continuing operations available to cover fixed charges
   $ 85,805     $ 81,780     $ 77,266     $ 74,403     $ 79,979  
 
                              
Fixed charges
   $ 4,130     $ 2,575     $ 1,330     $ 3,054     $ 4,015  
Preferred stock dividends
     50,937       47,933       43,011       33,020       15,784  
Preferred partnership distributions
     6,854       11,155       10,651       20,245       19,240  
 
                              
Combined fixed charges and preferred distributions
   $ 61,921     $ 61,663     $ 54,992     $ 56,319     $ 39,039  
 
                              
Ratio of earnings from continuing operations to fixed charges
     20.8       31.8       58.1       24.4       19.9  
 
                              
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions
     1.4       1.3       1.4       1.3       2.0  
 
                              

 

 

 

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     Six Months Ended  
    June 30,     June 30,  
    2008     2007     2008     2007  
FFO
   $ 31,382     $ 29,991     $ 61,979     $ 59,584  
Interest expense
     990       1,012       1,983       2,119  
Minority interest in income — preferred units
     1,752       1,752       3,504       3,351  
Preferred stock dividends
     12,757       12,757       25,513       25,425  
 
                        
FFO available to cover fixed charges
   $ 46,881     $ 45,512     $ 92,979     $ 90,479  
 
                        
Fixed charges
   $ 990     $ 1,012     $ 1,983     $ 2,119  
Preferred stock dividends
     12,757       12,757       25,513       25,425  
Preferred partnership distributions
     1,752       1,752       3,504       3,351  
 
                        
Combined fixed charges and preferred distributions paid
   $ 15,499     $ 15,521     $ 31,000     $ 30,895  
 
                        
Ratio of adjusted FFO to fixed charges
     47.4       45.0       46.9       42.7  
 
                        
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid
     3.0       2.9       3.0       2.9  
 
                        
                                         
    2007     2006     2005     2004     2003  
FFO (1)
   $ 122,405     $ 106,235     $ 102,463     $ 97,214     $ 97,448  
Interest expense
     4,130       2,575       1,330       3,054       4,015  
Minority interest in income — preferred units
     6,854       11,155       10,651       20,245       19,240  
Preferred stock dividends
     50,937       47,933       43,011       33,020       15,784  
 
                              
FFO available to cover fixed charges
   $ 184,326     $ 167,898     $ 157,455     $ 153,533     $ 136,487  
 
                              
Fixed charges
   $ 4,130     $ 2,575     $ 1,330     $ 3,054     $ 4,015  
Preferred stock dividends (2)
     50,937       44,553       43,011       31,154       15,784  
Preferred partnership distributions (2)
     6,854       9,789       10,350       17,106       19,240  
 
                              
Combined fixed charges and preferred distributions paid
   $ 61,921     $ 56,917     $ 54,691     $ 51,314     $ 39,039  
 
                              
Ratio of adjusted FFO to fixed charges
     44.6       65.2       118.4       50.3       34.0  
 
                              
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid
     3.0       2.9       2.9       3.0       3.5  
 
                              
 
     
(1)   FFO has been adjusted to include the effect of impairment charges.
 
(2)   Excludes EITF Topic D-42 distributions.