PS Business Parks (PSBXP) 10-Q 2005 Q1 Quarterly report

PS BUSINESS PARKS, INC.

EXHIBIT 12

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(in thousands, except ratios)

	Three Months Ended March 31,
	2005		2004
Income from continuing operations	$	14,787	$	11,571
Minority interest		4,373		6,344
Interest expense		282		1,266
Earnings from continuing operations available to cover fixed charges	$	19,442	$	19,181
Fixed charges (1)	$	282	$	1,266
Preferred stock dividends		9,769		7,825
Preferred partnership distributions		2,691		5,077
Combined fixed charges and preferred distributions	$	12,742	$	14,168
Ratio of earnings from continuing operations to fixed charges		68.9		15.2
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.5		1.4

	2004		2003		2002		2001		2000
Income from continuing operations	$	48,917	$	49,822	$	48,155	$	46,337	$	46,567
Minority interest		25,573		30,833		29,028		26,293		25,276
Interest expense		3,054		4,015		5,324		1,715		1,481
Earnings from continuing operations available to cover fixed charges	$	77,544	$	84,670	$	82,507	$	74,345	$	73,324
Fixed charges (1)		3,054		4,015		5,612		2,806		2,896
Preferred stock dividends		33,020		15,784		15,412		8,854		5,088
Preferred partnership distributions		20,245		19,240		17,927		14,107		12,185
Combined fixed charges and preferred distributions	$	56,319	$	39,039	$	38,951	$	25,767	$	20,169
Ratio of earnings from continuing operations to fixed charges		25.4		21.1		14.7		26.5		25.3
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.4		2.2		2.1		2.9		3.6

1. Fixed charges include interest expense plus capitalized interest

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:

	Three Months Ended March 31,
	2005		2004
FFO	$	25,881	$	23,447
Interest expense		282		1,266
Minority interest in income – preferred units		2,691		5,077
Preferred stock distributions		9,769		7,825
FFO available to cover fixed charges	$	38,623	$	37,615
Fixed charges (2)	$	282	$	1,266
Preferred stock dividends: (3)		9,769		5,959
Preferred partnership distributions: (3)		2,691		4,810
Combined fixed charges and preferred distributions paid	$	12,742	$	12,035
Ratio of FFO to fixed charges		137.0		29.7
Ratio of FFO to combined fixed charges and preferred distributions paid		3.0		3.1

	2004		2003		2002		2001		2000
FFO (1)	$	97,214	$	97,448	$	104,543	$	95,472	$	88,181
Interest expense		3,054		4,015		5,324		1,715		1,481
Minority interest in income – preferred units		20,245		19,240		17,927		14,107		12,185
Preferred stock distributions		33,020		15,784		15,412		8,854		5,088
FFO available to cover fixed charges	$	153,533	$	136,487	$	143,206	$	120,148	$	106,935
Fixed charges (2)	$	3,054	$	4,015	$	5,612	$	2,806	$	2,896
Preferred stock dividends: (3)		31,154		15,784		15,412		8,854		5,088
Preferred partnership distributions: (3)		17,106		19,240		17,927		14,107		12,185
Combined fixed charges and preferred distributions paid	$	51,314	$	39,039	$	38,951	$	25,767	$	20,169
Ratio of FFO to fixed charges		50.3		34.0		25.5		42.8		36.9
Ratio of FFO to combined fixed charges and preferred distributions paid		3.0		3.5		3.7		4.7		5.3

1.	FFO has been adjusted to include the effect of impairment charges
2.	Fixed charges include interest expense plus capitalized interest
3.	Excludes EITF Topic D-42 distributions