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 Nine Months | ||||||||
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| Ended September 30, |
| Ended September 30, | ||||||||
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| 2015 |
| 2014 |
| 2015 |
| 2014 | ||||
Net income |
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| $ | 46,277 |
| $ | 29,478 |
| $ | 115,941 |
| $ | 84,929 |
Interest expense |
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| 3,354 |
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| 3,397 |
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| 9,979 |
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| 10,120 |
Earnings available to cover fixed charges |
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| $ | 49,631 |
| $ | 32,875 |
| $ | 125,920 |
| $ | 95,049 |
Fixed charges (1) |
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| $ | 3,637 |
| $ | 3,637 |
| $ | 10,792 |
| $ | 10,817 |
Preferred stock dividends |
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| 17,609 |
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| 15,122 |
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| 47,853 |
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| 45,366 |
Combined fixed charges and preferred distributions |
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| $ | 21,246 |
| $ | 18,759 |
| $ | 58,645 |
| $ | 56,183 |
Ratio of earnings to fixed charges |
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| 13.6 |
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| 9.0 |
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| 11.7 |
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| 8.8 |
Ratio of earnings to combined |
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fixed charges and preferred distributions |
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| 2.3 |
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| 1.8 |
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| 2.1 |
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| 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 |
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| 16,074 |
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| 20,618 |
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| 5,455 |
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| 3,534 |
Earnings from continuing operations available to |
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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 |
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| 59,216 |
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| 69,136 |
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| 41,799 |
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| 46,214 |
Preferred partnership distributions |
| — |
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| — |
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| 323 |
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| (6,991) |
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| 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 |
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fixed charges |
| 15.1 |
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| 8.0 |
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| 5.6 |
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| 19.3 |
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| 28.3 |
Ratio of earnings from continuing operations to combined |
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fixed charges and preferred distributions |
| 2.9 |
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| 1.7 |
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| 1.3 |
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| 2.6 |
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| 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 Nine Months | ||||||||
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| Ended September 30, |
| Ended September 30, | ||||||||
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| 2015 |
| 2014 |
| 2015 |
| 2014 | ||||
FFO |
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| $ | 38,905 |
| $ | 41,167 |
| $ | 119,096 |
| $ | 123,110 |
Interest expense |
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| 3,354 |
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| 3,397 |
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| 9,979 |
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| 10,120 |
Preferred stock dividends |
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| 17,609 |
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| 15,122 |
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| 47,853 |
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| 45,366 |
FFO available to cover fixed charges |
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| $ | 59,868 |
| $ | 59,686 |
| $ | 176,928 |
| $ | 178,596 |
Fixed charges (1) |
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| $ | 3,637 |
| $ | 3,637 |
| $ | 10,792 |
| $ | 10,817 |
Preferred stock dividends (2) |
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| 15,122 |
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| 15,122 |
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| 45,366 |
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| 45,366 |
Combined fixed charges and preferred distributions paid |
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| $ | 18,759 |
| $ | 18,759 |
| $ | 56,158 |
| $ | 56,183 |
Ratio of available FFO to fixed charges |
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| 16.5 |
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| 16.4 |
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| 16.4 |
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| 16.5 |
Ratio of available FFO to combined fixed charges and |
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preferred distributions paid |
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| 3.2 |
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| 3.2 |
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| 3.2 |
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| 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 |
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| 16,074 |
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| 20,618 |
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| 5,455 |
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| 3,534 |
Net income allocable to noncontrolling interests — |
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preferred units |
| — |
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| — |
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| 323 |
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| (6,991) |
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| 5,103 |
Preferred stock dividends |
| 60,488 |
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| 59,216 |
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| 69,136 |
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| 41,799 |
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| 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 |
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| 59,216 |
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| 51,969 |
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| 41,799 |
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| 42,730 |
Preferred partnership distributions (2) |
| — |
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| — |
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| 174 |
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| 398 |
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| 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 |
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| 14.7 |
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| 10.9 |
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| 34.8 |
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| 50.7 |
Ratio of available FFO to combined fixed charges and |
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preferred distributions paid |
| 3.2 |
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| 3.2 |
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| 3.1 |
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| 4.0 |
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| 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.