PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
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| | | | For The Three Months | | For The Six Months |
| | | | Ended June 30, | | Ended June 30, |
| | | | 2015 | | 2014 | | 2015 | | 2014 |
Net income | | | | $ | 29,309 | | $ | 27,650 | | $ | 69,664 | | $ | 55,451 |
Interest expense | | | | | 3,327 | | | 3,370 | | | 6,625 | | | 6,723 |
Earnings available to cover fixed charges | | | | $ | 32,636 | | $ | 31,020 | | $ | 76,289 | | $ | 62,174 |
Fixed charges (1) | | | | $ | 3,597 | | $ | 3,602 | | $ | 7,155 | | $ | 7,180 |
Preferred stock dividends | | | | | 15,122 | | | 15,122 | | | 30,244 | | | 30,244 |
Combined fixed charges and preferred distributions | | | | $ | 18,719 | | $ | 18,724 | | $ | 37,399 | | $ | 37,424 |
Ratio of earnings to fixed charges | | | | | 9.1 | | | 8.6 | | | 10.7 | | | 8.7 |
Ratio of earnings to combined | | | | | | | | | | | | | | |
fixed charges and preferred distributions | | | | | 1.7 | | | 1.7 | | | 2.0 | | | 1.7 |
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| For the Years Ended December 31, |
| 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
Income from continuing operations | $ | 204,700 | | $ | 116,144 | | $ | 94,395 | | $ | 99,563 | | $ | 96,394 |
Interest expense | | 13,509 | | | 16,074 | | | 20,618 | | | 5,455 | | | 3,534 |
Earnings from continuing operations available to | | | | | | | | | | | | | | |
cover fixed charges | $ | 218,209 | | $ | 132,218 | | $ | 115,013 | | $ | 105,018 | | $ | 99,928 |
Fixed charges (1) | $ | 14,453 | | $ | 16,433 | | $ | 20,618 | | $ | 5,455 | | $ | 3,534 |
Preferred stock dividends | | 60,488 | | | 59,216 | | | 69,136 | | | 41,799 | | | 46,214 |
Preferred partnership distributions | | — | | | — | | | 323 | | | (6,991) | | | 5,103 |
Combined fixed charges and preferred distributions | $ | 74,941 | | $ | 75,649 | | $ | 90,077 | | $ | 40,263 | | $ | 54,851 |
Ratio of earnings from continuing operations to | | | | | | | | | | | | | | |
fixed charges | | 15.1 | | | 8.0 | | | 5.6 | | | 19.3 | | | 28.3 |
Ratio of earnings from continuing operations to combined | | | | | | | | | | | | | | |
fixed charges and preferred distributions | | 2.9 | | | 1.7 | | | 1.3 | | | 2.6 | | | 1.8 |
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(1)Fixed charges include interest expense and 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:
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| | | | For The Three Months | | For The Six Months |
| | | | Ended June 30, | | Ended June 30, |
| | | | 2015 | | 2014 | | 2015 | | 2014 |
FFO | | | | $ | 41,212 | | $ | 40,823 | | $ | 80,191 | | $ | 81,943 |
Interest expense | | | | | 3,327 | | | 3,370 | | | 6,625 | | | 6,723 |
Preferred stock dividends | | | | | 15,122 | | | 15,122 | | | 30,244 | | | 30,244 |
FFO available to cover fixed charges | | | | $ | 59,661 | | $ | 59,315 | | $ | 117,060 | | $ | 118,910 |
Fixed charges (1) | | | | $ | 3,597 | | $ | 3,602 | | $ | 7,155 | | $ | 7,180 |
Preferred stock dividends (2) | | | | | 15,122 | | | 15,122 | | | 30,244 | | | 30,244 |
Combined fixed charges and preferred distributions paid | | | | $ | 18,719 | | $ | 18,724 | | $ | 37,399 | | $ | 37,424 |
Ratio of available FFO to fixed charges | | | | | 16.6 | | | 16.5 | | | 16.4 | | | 16.6 |
Ratio of available FFO to combined fixed charges and | | | | | | | | | | | | | | |
preferred distributions paid | | | | | 3.2 | | | 3.2 | | | 3.1 | | | 3.2 |
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| For the Years Ended December 31, |
| 2014 | | 2013 | | 2012 | | 2011 | | 2010 |
FFO | $ | 162,196 | | $ | 165,845 | | $ | 134,472 | | $ | 149,797 | | $ | 124,420 |
Interest expense | | 13,509 | | | 16,074 | | | 20,618 | | | 5,455 | | | 3,534 |
Net income allocable to noncontrolling interests — | | | | | | | | | | | | | | |
preferred units | | — | | | — | | | 323 | | | (6,991) | | | 5,103 |
Preferred stock dividends | | 60,488 | | | 59,216 | | | 69,136 | | | 41,799 | | | 46,214 |
FFO available to cover fixed charges | $ | 236,193 | | $ | 241,135 | | $ | 224,549 | | $ | 190,060 | | $ | 179,271 |
Fixed charges (1) | $ | 14,453 | | $ | 16,433 | | $ | 20,618 | | $ | 5,455 | | $ | 3,534 |
Preferred stock dividends (2) | | 60,488 | | | 59,216 | | | 51,969 | | | 41,799 | | | 42,730 |
Preferred partnership distributions (2) | | — | | | — | | | 174 | | | 398 | | | 4,521 |
Combined fixed charges and preferred distributions paid | $ | 74,941 | | $ | 75,649 | | $ | 72,761 | | $ | 47,652 | | $ | 50,785 |
Ratio of available FFO to fixed charges | | 16.3 | | | 14.7 | | | 10.9 | | | 34.8 | | | 50.7 |
Ratio of available FFO to combined fixed charges and | | | | | | | | | | | | | | |
preferred distributions paid | | 3.2 | | | 3.2 | | | 3.1 | | | 4.0 | | | 3.5 |
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(1)Fixed charges include interest expense and capitalized interest.
(2)Excludes the issuance costs related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity.
