PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Years Ended December 31,
2002 2001 2000 1999 1998
Net income......................... $ 57,430,000 $ 49,870,000 $ 51,181,000 $ 41,255,000 $ 29,400,000
Minority interest.................. 32,170,000 27,489,000 26,741,000 16,049,000 11,208,000
Interest expense................... 5,324000 1,715,000 1,481,000 3,153,000 2,361,000
-------- --------- --------- --------- ---------
Earnings available to cover fixed
charges......................... $ 94,924,000 $ 79,074,000 $ 79,403,000 $60,457,000 $ 42,969,000
============ ============ ============ =========== ============
Fixed charges (1).................. $ 5,612,000 $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000
Preferred distributions............ 33,340,000 22,961,000 17,273,000 7,562,000 -
---------- ---------- ---------- --------- ---------
Combined fixed charges and preferred
distributions................... $ 38,952,000 $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000
============ ============ ============ ============ ============
Ratio of earnings to fixed charges. 16.91 28.18 27.42 14.60 16.34
===== ===== ===== ===== =====
Ratio of earnings to combined fixed
charges and preferred
distributions................... 2.44 3.07 3.94 5.17 16.34
==== ==== ==== ==== =====
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Supplemental disclosure of Ratio of Funds from Operations ("FFO") to fixed charges:
Years Ended December 31,
2002 2001 2000 1999 1998
FFO................................ $ 103,045,000 $ 93,568,000 $ 85,977,000 $ 76,353,000 $ 57,430,000
Interest expense................... 5,324,000 1,715,000 1,481,000 3,153,000 2,361,000
Minority interest in income -
preferred units.................... 17,927,000 14,107,000 12,185,000 4,156,000 -
Preferred dividends................ 15,412,000 8,854,000 5,088,000 3,406,000 -
---------- --------- --------- --------- -----------
Adjusted FFO available to cover
fixed charges................... $ 141,708,000 $ 118,244,000 $ 104,731,000 $ 87,068,000 $ 59,791,000
============= ============= ============= ============ ============
Fixed charges (1).................. $ 5,612,000 $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000
Preferred distributions............ 33,339,000 22,961,000 17,273,000 7,562,000 -
---------- ---------- ---------- --------- ----------
Combined fixed charges and preferred
distributions................... $ 38,951,000 $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000
============ ============ ============ ============ ============
Ratio of FFO to fixed charges...... 25.25 42.14 36.16 21.02 22.74
===== ===== ===== ===== =====
Ratio of FFO to combined fixed
charges and preferred
distributions................... 3.64 4.59 5.19 7.44 22.74
==== ==== ==== ==== =====
(1) Fixed charges include interest expense plus capitalized interest.
