PS Business Parks (PSBXP) 10-Q 2004 Q3 Quarterly report

PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(in thousands, except ratios)

	Nine Months Ended
	September 30,
	2004		2003
Net income	$	35,243	$	38,490
Minority interest		22,026		23,494
Interest expense		2,612		3,013
Earnings available to cover fixed charges	$	59,881	$	64,997
Fixed charges – interest expense	$	2,612	$	3,013
Cumulative Preferred Stock dividends	$	23,032	$	11,904
Preferred partnership unit distributions		17,924		14,430
Total preferred distributions	$	40,956	$	26,334
Total combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42	$	38,563	$	29,347
Impact of EITF Topic D-42		5,005		—
Total combined fixed charges and preferred distributions, including the impact of EITF Topic D-42	$	43,568	$	29,347
Ratio of earnings to fixed charges		22.93x		21.57x
Ratio of earnings to combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42		1.55x		2.21x
Ratio of earnings to combined fixed charges and preferred distributions, including the impact of EITF Topic D-42		1.37x		2.21x

	Year Ended December 31,
	2003		2002		2001		2000		1999
Net income	$	49,096	$	57,430	$	49,870	$	51,181	$	41,255
Minority interest		30,585		32,170		27,489		26,741		16,049
Interest expense		4,015		5,324		1,715		1,481		3,153
Earnings available to cover fixed charges	$	83,696	$	94,924	$	79,074	$	79,403	$	60,457
Fixed charges – (including capitalized interest)	$	4,015	$	5,612	$	2,806	$	2,896	$	4,142
Cumulative Preferred Stock dividends	$	15,784	$	15,412	$	8,854	$	5,088	$	3,406
Preferred partnership unit distributions		19,240		17,927		14,107		12,185		4,156
Total preferred distributions	$	35,024	$	33,339	$	22,961	$	17,273	$	7,562
Total combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42	$	38,912	$	38,951	$	25,767	$	20,169	$	11,704
Impact of EITF Topic D-42		127		—		—		—		—
Total combined fixed charges and preferred distributions, including the impact of EITF Topic D-42	$	39,039	$	38,951	$	25,767	$	20,169	$	11,704
Ratio of earnings to fixed charges		20.85x		16.91x		28.18x		27.42x		14.60x
Ratio of earnings to combined fixed charges and preferred distributions, prior to the impact of
Ratio of earnings to combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42		2.15x		2.44x		3.07x		3.94x		5.17x
Ratio of earnings to combined fixed charges and preferred distributions, including the impact of EITF Topic D-42		2.14x		2.44x		3.07x		3.94x		5.17x

PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Supplemental Disclosure of Ratio of Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to Fixed Charges (a):

	Nine Months Ended
	September 30,
	2004			2003
	(in thousands, except ratios)
Net income	$	35,243		$	38,490
(Gain) loss on sale of real estate		(145	)		(3,498	)
Depreciation and amortization		55,019			43,237
Minority interest — preferred		17,924			14,430
Interest expense		2,612			3,013
EBITDA available to cover fixed charges	$	110,653		$	95,672
Fixed charges – interest expense	$	2,612		$	3,013
Cumulative Preferred Stock dividends	$	23,032		$	11,904
Preferred partnership unit distributions		17,924			14,430
Total preferred distributions (including impact of EITF Topic D-42)	$	40,956		$	26,334
Total combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42	$	38,563		$	29,347
Impact of EITF Topic D-42		5,005			—
Total combined fixed charges and preferred distributions, including the impact of EITF Topic D-42	$	43,568		$	29,347
Ratio of EBITDA to fixed charges		42.36x			31.75x
Ratio of EBITDA to combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42		2.87x			3.26x
Ratio of EBITDA to combined fixed charges and preferred distributions, including the impact of EITF Topic D-42		2.54x			3.26x

Continued on the following page

PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

Supplemental Disclosure of Ratio of Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) to Fixed Charges (a):

Continued from previous page

	Years Ended December 31,
	2003			2002			2001		2000			1999
Net income	$	49,096		$	57,430		$	49,870	$	51,181		$	41,255
(Gain) loss on sale of real estate		(2,897	)		(9,023	)		—		(256	)		—
Depreciation and amortization		59,107			58,144			41,067		35,637			29,762
Minority interest – preferred		19,240			17,927			14,107		12,185			4,156
Interest expense		4,015			5,324			1,715		1,481			3,153
EBITDA available to cover fixed charges	$	128,561		$	129,802		$	106,759	$	100,228		$	78,326
Fixed charges- (including capitalized interest)	$	4,015		$	5,612		$	2,806	$	2,896		$	4,142
Cumulative Preferred Stock dividends	$	15,784		$	15,412		$	8,854	$	5,088		$	3,406
Preferred partnership unit distributions		19,240			17,927			14,107		12,185			4,156
Total preferred distributions	$	35,024		$	33,339		$	22,961	$	17,273		$	7,562
Total combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42	$	38,912		$	38,951		$	25,767	$	20,169		$	11,704
Impact of EITF Topic D-42		127			—			—		—			—
Total combined fixed charges and preferred distributions, including the impact of EITF Topic D-42	$	39,039		$	38,951		$	25,767	$	20,169		$	11,704
Ratio of EBITDA to fixed charges		32.02x			23.13x			38.05x		34.61x			18.91x
Ratio of EBITDA to combined fixed charges and preferred distributions, prior to the impact of EITF Topic D-42		3.30x			3.33x			4.14x		4.97x			6.69x
Ratio of EBITDA to combined fixed charges and preferred distributions, including the impact of EITF Topic D-42		3.30x			3.33x			4.14x		4.97x			6.69x

(a) EBITDA represents earnings prior to interest, taxes, depreciation, amortization, gains on sale of real estate and the impact of EITF Topic D-42. This supplemental disclosure of EBITDA is included because financial analysts and other members of the investment community consider coverage ratios for real estate companies on this basis.