Exhibit 12
PS BUSINESS PARKS, INC.
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio data)
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratio data)
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
| Income from continuing operations | $ | 92,021 | $ | 84,750 | $ | 81,112 | $ | 78,504 | $ | 75,617 | ||||||||||
| Interest expense | 3,552 | 3,952 | 4,130 | 2,575 | 1,330 | |||||||||||||||
| Earnings from continuing operations available to cover fixed charges | $ | 95,573 | $ | 88,702 | $ | 85,242 | $ | 81,079 | $ | 76,947 | ||||||||||
| Fixed charges(1) | $ | 3,552 | $ | 3,952 | $ | 4,130 | $ | 2,575 | $ | 1,330 | ||||||||||
| Preferred stock dividends | 17,440 | 46,630 | 50,937 | 47,933 | 43,011 | |||||||||||||||
| Preferred partnership distributions | (2,569 | ) | 7,007 | 6,854 | 11,155 | 10,651 | ||||||||||||||
| Combined fixed charges and preferred distributions | $ | 18,423 | $ | 57,589 | $ | 61,921 | $ | 61,663 | $ | 54,992 | ||||||||||
| Ratio of earnings from continuing operations to fixed charges | 26.9 | 22.4 | 20.6 | 31.5 | 57.9 | |||||||||||||||
| Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 5.2 | 1.5 | 1.4 | 1.3 | 1.4 | |||||||||||||||
Supplemental disclosure of Ratio of Funds from Operations (“FFO”) to fixed charges:
| 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||
| FFO | $ | 163,074 | $ | 131,558 | $ | 122,405 | $ | 106,235 | $ | 102,608 | ||||||||||
| Interest expense | 3,552 | 3,952 | 4,130 | 2,575 | 1,330 | |||||||||||||||
| Net income allocable to noncontrolling interests — preferred units | (2,569 | ) | 7,007 | 6,854 | 11,155 | 10,651 | ||||||||||||||
| Preferred stock dividends | 17,440 | 46,630 | 50,937 | 47,933 | 43,011 | |||||||||||||||
| FFO available to cover fixed charges | $ | 181,497 | $ | 189,147 | $ | 184,326 | $ | 167,898 | $ | 157,600 | ||||||||||
| Fixed charges(1) | $ | 3,552 | $ | 3,952 | $ | 4,130 | $ | 2,575 | $ | 1,330 | ||||||||||
| Preferred stock dividends(2) | 44,662 | 50,858 | 50,937 | 44,553 | 43,011 | |||||||||||||||
| Preferred partnership distributions(2) | 5,848 | 7,007 | 6,854 | 9,789 | 10,350 | |||||||||||||||
| Combined fixed charges and preferred distributions paid | $ | 54,062 | $ | 61,817 | $ | 61,921 | $ | 56,917 | $ | 54,691 | ||||||||||
| Ratio of adjusted FFO to fixed charges | 51.1 | 47.9 | 44.6 | 65.2 | 118.5 | |||||||||||||||
| Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 3.4 | 3.1 | 3.0 | 2.9 | 2.9 | |||||||||||||||
| (1) | Fixed charges include interest expense. | |
| (2) | Excludes the effect of redemption/repurchase of preferred equity. |