PS BUSINESS PARKS, INC.
Exhibit 12:
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31,
---------------------------------------
2003 2002
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Net income...................................................... $ 5,803,000 $ 16,702,000
Minority interest............................................... 6,775,000 8,844,000
Interest expense................................................ 1,002,000 1,551,000
--------- ---------
Earnings available to cover fixed charges....................... $ 13,580,000 $ 27,097,000
=============== ===============
Fixed charges (1)............................................... $ 1,002,000 $ 1,695,000
Preferred distributions......................................... 8,738,000 8,029,000
--------- ---------
Combined fixed charges and preferred distributions.............. $ 9,740,000 $ 9,724,000
=============== ===============
Ratio of earnings to fixed charges..............................
13.55 15.99
===== =====
Ratio of earnings to combined fixed charges and preferred
distributions.................................................. 1.39 2.79
==== ====
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................... 5,324,000 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
==== ==== ==== ==== =====
(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:
Three Months Ended
March 31,
---------------------------------------
2003 2002
---------------------------------------
FFO............................................................. $ 26,284,000 $ 26,124,000
Interest expense................................................ 1,002,000 1,551,000
Minority interest in income - preferred units................... 4,810,000 4,412,000
Preferred dividends............................................. 3,928,000 3,617,000
--------- ---------
Adjusted FFO available to cover fixed charges................... $ 36,024,000 $ 35,704,000
================ ===============
Fixed charges (1)............................................... $ 1,002,000 $ 1,695,000
Preferred distributions......................................... 8,738,000 8,029,000
--------- ---------
Combined fixed charges and preferred distributions.............. $ 9,740,000 $ 9,724,000
================ ===============
Ratio of FFO to fixed charges................................... 35.95 21.06
===== =====
Ratio of FFO to combined fixed charges and preferred
distributions................................. 3.70 3.67
==== ====
Years Ended December 31,
--------------------------------------------------------------------------------
2002 2001 2000 1999 1998
-------------- ------------- ------------- ------------ -------------
FFO................................ $ 105,443,000 $ 95,472,000 $ 88,181,000 $ 79,760,000 $ 59,516,000
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................... $ 144,106,000 $ 120,148,000 $ 106,935,000 $ 90,475,000 $ 61,877,000
============= ============= ============= ============ ============
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...... 25.68 42.82 36.93 21.84 23.54
===== ===== ===== ===== =====
Ratio of FFO to combined fixed
charges and preferred
distributions................... 3.70 4.66 5.30 7.73 23.54
==== ==== ==== ==== =====
(1) Fixed charges include interest expense plus capitalized interest.
