Exhibit 12
PS BUSINESS PARKS, INC.
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND INCOME ALLOCATION TO PREFERRED SHAREHOLDERS
(Unaudited, in thousands, except ratio data)
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| For The Three Months | ||||
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| Ended March 31, | ||||
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| 2018 |
| 2017 | ||
Net income |
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| $ | 71,525 |
| $ | 47,033 |
Interest expense |
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| 140 |
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| 139 |
Earnings available to cover fixed charges |
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| $ | 71,665 |
| $ | 47,172 | |||||
Fixed charges (1) |
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| $ | 140 |
| $ | 418 |
Allocation to preferred shareholders |
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| 13,003 |
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| 13,291 |
Combined fixed charges and income allocation to preferred shareholders |
| $ | 13,143 |
| $ | 13,709 | ||||||||
Ratio of earnings to fixed charges |
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| 511.9 |
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| 112.9 |
Ratio of earnings to combined fixed charges and income allocation to preferred shareholders |
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| 5.5 |
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| 3.4 | ||||||||
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| For the Years Ended December 31, | |||||||||||||
| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 | |||||
Net Income | $ | 179,316 |
| $ | 144,984 |
| $ | 148,970 |
| $ | 204,700 |
| $ | 116,144 |
Interest expense |
| 1,179 |
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| 5,568 |
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| 13,270 |
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| 13,509 |
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| 16,074 |
Earnings available to cover fixed charges | $ | 180,495 |
| $ | 150,552 |
| $ | 162,240 |
| $ | 218,209 |
| $ | 132,218 |
Fixed charges (1) | $ | 1,685 |
| $ | 6,452 |
| $ | 14,428 |
| $ | 14,453 |
| $ | 16,433 |
Allocation to preferred shareholders based upon |
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Distributions |
| 52,873 |
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| 57,276 |
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| 59,398 |
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| 60,488 |
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| 59,216 |
Redemptions |
| 10,978 |
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| 7,312 |
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| 2,487 |
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| — |
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| — |
Combined fixed charges and income allocation to |
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preferred shareholders | $ | 65,536 |
| $ | 71,040 |
| $ | 76,313 |
| $ | 74,941 |
| $ | 75,649 |
Ratio of earnings to fixed charges |
| 107.1 |
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| 23.3 |
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| 11.2 |
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| 15.1 |
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| 8.0 |
Ratio of earnings to combined fixed charges |
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and income allocation to preferred shareholders |
| 2.8 |
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| 2.1 |
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| 2.1 |
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| 2.9 |
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| 1.7 |
____________________________
(1) | Fixed charges include interest expense and capitalized interest. |
Supplemental Disclosure of Ratio of Funds from Operations (“FFO”) to Fixed Charges and Ratio of FFO to Combined Fixed Charges and Preferred Distributions (Unaudited, in thousands, except ratio data):
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| For The Three Months | ||||
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| Ended March 31, | ||||
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| 2018 |
| 2017 | ||
FFO allocable to common and dilutive shares |
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| $ | 55,582 |
| $ | 52,955 |
Interest expense |
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| 140 |
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| 139 |
Allocation to preferred shareholders |
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| 13,003 |
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| 13,291 |
FFO available to cover fixed charges |
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| $ | 68,725 |
| $ | 66,385 |
Fixed charges (1) |
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| $ | 140 |
| $ | 418 |
Distributions to preferred shareholders |
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| 13,003 |
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| 13,291 |
Combined fixed charges and preferred distributions paid |
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| $ | 13,143 |
| $ | 13,709 |
Ratio of available FFO to fixed charges |
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| 490.9 |
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| 158.8 |
Ratio of available FFO to combined fixed charges and preferred distributions paid |
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| 5.2 |
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| 4.8 | ||||||||
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| For the Years Ended December 31, | |||||||||||||
| 2017 |
| 2016 |
| 2015 |
| 2014 |
| 2013 | |||||
FFO allocable to common and dilutive shares | $ | 203,341 |
| $ | 179,882 |
| $ | 164,244 |
| $ | 162,196 |
| $ | 165,845 |
Interest expense |
| 1,179 |
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| 5,568 |
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| 13,270 |
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| 13,509 |
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| 16,074 |
Allocation to preferred shareholders based upon |
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Distributions |
| 52,873 |
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| 57,276 |
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| 59,398 |
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| 60,488 |
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| 59,216 |
Redemptions |
| 10,978 |
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| 7,312 |
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| 2,487 |
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| — |
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| — |
FFO available to cover fixed charges | $ | 268,371 |
| $ | 250,038 |
| $ | 239,399 |
| $ | 236,193 |
| $ | 241,135 |
Fixed charges (1) | $ | 1,685 |
| $ | 6,452 |
| $ | 14,428 |
| $ | 14,453 |
| $ | 16,433 |
Distributions to preferred shareholders |
| 52,873 |
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| 57,276 |
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| 59,398 |
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| 60,488 |
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| 59,216 |
Combined fixed charges and preferred distributions paid | $ | 54,558 |
| $ | 63,728 |
| $ | 73,826 |
| $ | 74,941 |
| $ | 75,649 |
Ratio of available FFO to fixed charges |
| 159.3 |
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| 38.8 |
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| 16.6 |
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| 16.3 |
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| 14.7 |
Ratio of available FFO to combined fixed charges and |
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preferred distributions paid |
| 4.9 |
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| 3.9 |
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| 3.2 |
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| 3.2 |
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| 3.2 |
____________________________
(1) | Fixed charges include interest expense and capitalized interest. |