PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
| For the Three Months | For the Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| Income from continuing operations | $ | 23,559 | $ | 23,313 | $ | 72,703 | $ | 66,821 | ||||||||
| Interest expense | 875 | 875 | 2,586 | 2,686 | ||||||||||||
| Earnings from continuing operations available to cover fixed charges | $ | 24,434 | $ | 24,188 | $ | 75,289 | $ | 69,507 | ||||||||
Fixed charges(1) | $ | 875 | $ | 875 | $ | 2,586 | $ | 2,686 | ||||||||
| Preferred stock dividends | 10,080 | 11,156 | 33,958 | 6,285 | ||||||||||||
| Preferred partnership distributions | 984 | 1,382 | 4,118 | (3,951 | ) | |||||||||||
| Combined fixed charges and preferred distributions | $ | 11,939 | $ | 13,413 | $ | 40,662 | $ | 5,020 | ||||||||
| Ratio of earnings from continuing operations to fixed charges | 27.9 | 27.6 | 29.1 | 25.9 | ||||||||||||
| Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 2.0 | 1.8 | 1.9 | 13.8 | ||||||||||||
| 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. |
PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
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 Nine Months | |||||||||||||||
| Ended September 30, | Ended September 30, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| FFO | $ | 33,695 | $ | 31,476 | $ | 92,717 | $ | 130,371 | ||||||||
| Interest expense | 875 | 875 | 2,586 | 2,686 | ||||||||||||
| Net income allocable to noncontrolling interests — preferred units | 984 | 1,382 | 4,118 | (3,951 | ) | |||||||||||
| Preferred stock dividends | 10,080 | 11,156 | 33,958 | 6,285 | ||||||||||||
| FFO available to cover fixed charges | $ | 45,634 | $ | 44,889 | $ | 133,379 | $ | 135,391 | ||||||||
Fixed charges(1) | $ | 875 | $ | 875 | $ | 2,586 | $ | 2,686 | ||||||||
Preferred stock dividends(2) | 10,080 | 11,156 | 32,104 | 33,507 | ||||||||||||
Preferred partnership distributions(2) | 984 | 1,382 | 3,536 | 4,466 | ||||||||||||
| Combined fixed charges and preferred distributions paid | $ | 11,939 | $ | 13,413 | $ | 38,226 | $ | 40,659 | ||||||||
| Ratio of adjusted FFO to fixed charges | 52.2 | 51.3 | 51.6 | 50.4 | ||||||||||||
| Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 3.8 | 3.3 | 3.5 | 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 issuance costs related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity. |