PS Business Parks (PSBXP) 10-Q 2011 Q2 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				For the Six Months
	Ended June 30,				Ended June 30,
	2011		2010		2011			2010
Income from continuing operations	$	25,136	$	26,394	$	49,673		$	48,901
Interest expense		1,145		856		2,360			1,711
Earnings from continuing operations available to cover fixed charges	$	26,281	$	27,250	$	52,033		$	50,612
Fixed charges(1)	$	1,145	$	856	$	2,360		$	1,711
Preferred stock dividends		10,449		12,723		20,899			23,878
Preferred partnership distributions		100		1,752		(7,190	)		3,134
Combined fixed charges and preferred distributions	$	11,694	$	15,331	$	16,069		$	28,723
Ratio of earnings from continuing operations to fixed charges		23.0		31.8		22.0			29.6
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		2.2		1.8		3.2			1.8

	For the Years Ended December 31,
	2010		2009			2008		2007		2006
Income from continuing operations	$	96,401	$	91,442		$	84,188	$	80,683	$	77,707
Interest expense		3,534		3,552			3,952		4,130		2,575
Earnings from continuing operations available to cover fixed charges	$	99,935	$	94,994		$	88,140	$	84,813	$	80,282
Fixed charges(1)	$	3,534	$	3,552		$	3,952	$	4,130	$	2,575
Preferred stock dividends		46,214		17,440			46,630		50,937		47,933
Preferred partnership distributions		5,103		(2,569	)		7,007		6,854		11,155
Combined fixed charges and preferred distributions	$	54,851	$	18,423		$	57,589	$	61,921	$	61,663
Ratio of earnings from continuing operations to fixed charges		28.3		26.7			22.3		20.5		31.2
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.8		5.2			1.5		1.4		1.3

⁽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)

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,
	2011		2010		2011			2010
FFO	$	35,816	$	30,681	$	78,188		$	59,022
Interest expense		1,145		856		2,360			1,711
Net income allocable to noncontrolling interests — preferred units		100		1,752		(7,190	)		3,134
Preferred stock dividends		10,449		12,723		20,899			23,878
FFO available to cover fixed charges	$	47,510	$	46,012	$	94,257		$	87,745
Fixed charges(1)	$	1,145	$	856	$	2,360		$	1,711
Preferred stock dividends(2)		10,449		10,869		20,899			22,024
Preferred partnership distributions(2)		100		1,170		199			2,552
Combined fixed charges and preferred distributions paid	$	11,694	$	12,895	$	23,458		$	26,287
Ratio of adjusted FFO to fixed charges		41.5		53.8		39.9			51.3
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		4.1		3.6		4.0			3.3

	For the Years Ended December 31,
	2010		2009			2008		2007		2006
FFO	$	124,420	$	163,074		$	131,558	$	122,405	$	106,235
Interest expense		3,534		3,552			3,952		4,130		2,575
Net income allocable to noncontrolling interests — preferred units		5,103		(2,569	)		7,007		6,854		11,155
Preferred stock dividends		46,214		17,440			46,630		50,937		47,933
FFO available to cover fixed charges	$	179,271	$	181,497		$	189,147	$	184,326	$	167,898
Fixed charges(1)	$	3,534	$	3,552		$	3,952	$	4,130	$	2,575
Preferred stock dividends(2)		42,730		44,662			50,858		50,937		44,553
Preferred partnership distributions(2)		4,521		5,848			7,007		6,854		9,789
Combined fixed charges and preferred distributions paid	$	50,785	$	54,062		$	61,817	$	61,921	$	56,917
Ratio of adjusted FFO to fixed charges		50.7		51.1			47.9		44.6		65.2
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.5		3.4			3.1		3.0		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.