PS Business Parks (PSBXP) 10-Q 2010 Q2 Quarterly report

Exhibit 12

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				For the Six Months
	Ended June 30,				Ended June 30,
	2010		2009		2010		2009
Income from continuing operations	$	26,490	$	21,976	$	49,144	$	43,508
Interest expense		856		881		1,711		1,811
Earnings from continuing operations available to cover fixed charges	$	27,346	$	22,857	$	50,855	$	45,319
Fixed charges(1)	$	856	$	881	$	1,711	$	1,811
Preferred stock dividends		12,723		11,155		23,878		(4,871	)
Preferred partnership distributions		1,752		1,381		3,134		(5,333	)
Combined fixed charges and preferred distributions	$	15,331	$	13,417	$	28,723	$	(8,393	)
Ratio of earnings from continuing operations to fixed charges		31.9		25.9		29.7		25.0
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.8		1.7		1.8		(2	)

	For the Years Ended December 31,
	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

(1)	Fixed charges include interest expense.
(2)	Not meaningful as combined fixed charges and preferred stock dividends are negative.

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:

	For the Three Months				For the Six Months
	Ended June 30,				Ended June 30,
	2010		2009		2010		2009
FFO	$	30,681	$	31,713	$	59,022	$	98,895
Interest expense		856		881		1,711		1,811
Net income allocable to noncontrolling interests — preferred units		1,752		1,381		3,134		(5,333	)
Preferred stock dividends		12,723		11,155		23,878		(4,871	)
FFO available to cover fixed charges	$	46,012	$	45,130	$	87,745	$	90,502
Fixed charges(1)	$	856	$	881	$	1,711	$	1,811
Preferred stock dividends(2)		10,869		11,155		22,024		22,351
Preferred partnership distributions(2)		1,170		1,381		2,552		3,084
Combined fixed charges and preferred distributions paid	$	12,895	$	13,417	$	26,287	$	27,246
Ratio of adjusted FFO to fixed charges		53.8		51.2		51.3		50.0
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.6		3.4		3.3		3.3

	For the Years Ended December 31,
	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.