PS Business Parks (PSBXP) 10-Q 2016 Q1 Quarterly report

PS BUSINESS PARKS, INC.

EXHIBIT 12

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited, in thousands, except ratio data)

							For The Three Months
							Ended March 31,
							2016		2015
Net income							$	32,480	$	40,355
Interest expense								3,177		3,298
Earnings available to cover fixed charges							$	35,657	$	43,653
Fixed charges (1)							$	3,571	$	3,558
Preferred stock dividends								13,833		15,122
Combined fixed charges and preferred distributions							$	17,404	$	18,680
Ratio of earnings to fixed charges								10.0		12.3
Ratio of earnings to combined fixed charges and preferred distributions								2.0		2.3
	For the Years Ended December 31,
	2015		2014		2013		2012		2011
Income from continuing operations	$	148,970	$	204,700	$	116,144	$	94,395	$	99,563
Interest expense		13,270		13,509		16,074		20,618		5,455
Earnings from continuing operations available to
cover fixed charges	$	162,240	$	218,209	$	132,218	$	115,013	$	105,018
Fixed charges (1)	$	14,428	$	14,453	$	16,433	$	20,618	$	5,455
Preferred stock dividends		61,885		60,488		59,216		69,136		41,799
Preferred partnership distributions		—		—		—		323		(6,991)
Combined fixed charges and preferred distributions	$	76,313	$	74,941	$	75,649	$	90,077	$	40,263
Ratio of earnings from continuing operations to
fixed charges		11.2		15.1		8.0		5.6		19.3
Ratio of earnings from continuing operations to combined
fixed charges and preferred distributions		2.1		2.9		1.7		1.3		2.6

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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 FixedCharges:

							For The Three Months
							Ended March 31,
							2016		2015
FFO							$	43,688	$	38,979
Interest expense								3,177		3,298
Preferred stock dividends								13,833		15,122
FFO available to cover fixed charges							$	60,698	$	57,399
Fixed charges (1)							$	3,571	$	3,558
Preferred stock dividends (2)								13,833		15,122
Combined fixed charges and preferred distributions paid							$	17,404	$	18,680
Ratio of available FFO to fixed charges								17.0		16.1
Ratio of available FFO to combined fixed charges and preferred distributions paid								3.5		3.1
	For the Years Ended December 31,
	2015		2014		2013		2012		2011
FFO	$	164,244	$	162,196	$	165,845	$	134,472	$	149,797
Interest expense		13,270		13,509		16,074		20,618		5,455
Net income allocable to noncontrolling interests —
preferred units		—		—		—		323		(6,991)
Preferred stock dividends		61,885		60,488		59,216		69,136		41,799
FFO available to cover fixed charges	$	239,399	$	236,193	$	241,135	$	224,549	$	190,060
Fixed charges (1)	$	14,428	$	14,453	$	16,433	$	20,618	$	5,455
Preferred stock dividends (2)		59,398		60,488		59,216		51,969		41,799
Preferred partnership distributions (2)		—		—		—		174		398
Combined fixed charges and preferred distributions paid	$	73,826	$	74,941	$	75,649	$	72,761	$	47,652
Ratio of available FFO to fixed charges		16.6		16.3		14.7		10.9		34.8
Ratio of available FFO to combined fixed charges and
preferred distributions paid		3.2		3.2		3.2		3.1		4.0

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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.