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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Income from continuing operations | $ | 27,836 | $ | 23,456 | $ | 77,509 | $ | 72,357 | ||||||||
| Interest expense | 1,261 | 875 | 3,621 | 2,586 | ||||||||||||
| Earnings from continuing operations available to cover fixed charges | $ | 29,097 | $ | 24,331 | $ | 81,130 | $ | 74,943 | ||||||||
Fixed charges(1) | $ | 1,261 | $ | 875 | $ | 3,621 | $ | 2,586 | ||||||||
| Preferred stock dividends | 10,450 | 10,080 | 31,349 | 33,958 | ||||||||||||
| Preferred partnership distributions | 99 | 984 | (7,091 | ) | 4,118 | |||||||||||
| Combined fixed charges and preferred distributions | $ | 11,810 | $ | 11,939 | $ | 27,879 | $ | 40,662 | ||||||||
| Ratio of earnings from continuing operations to fixed charges | 23.1 | 27.8 | 22.4 | 29.0 | ||||||||||||
| Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 2.5 | 2.0 | 2.9 | 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. |
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PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| FFO | $ | 38,783 | $ | 33,695 | $ | 116,971 | $ | 92,717 | ||||||||
| Interest expense | 1,261 | 875 | 3,621 | 2,586 | ||||||||||||
| Net income allocable to noncontrolling interests — preferred units | 99 | 984 | (7,091 | ) | 4,118 | |||||||||||
| Preferred stock dividends | 10,450 | 10,080 | 31,349 | 33,958 | ||||||||||||
| FFO available to cover fixed charges | $ | 50,593 | $ | 45,634 | $ | 144,850 | $ | 133,379 | ||||||||
Fixed charges(1) | $ | 1,261 | $ | 875 | $ | 3,621 | $ | 2,586 | ||||||||
Preferred stock dividends(2) | 10,450 | 10,080 | 31,349 | 32,104 | ||||||||||||
Preferred partnership distributions(2) | 99 | 984 | 298 | 3,536 | ||||||||||||
| Combined fixed charges and preferred distributions paid | $ | 11,810 | $ | 11,939 | $ | 35,268 | $ | 38,226 | ||||||||
| Ratio of adjusted FFO to fixed charges | 40.1 | 52.2 | 40.0 | 51.6 | ||||||||||||
| Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 4.3 | 3.8 | 4.1 | 3.5 | ||||||||||||
| 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. |
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