PS Business Parks (PSBXP) 10-Q 2005 Q2 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				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
Income from continuing operations	$	15,229	$	11,396	$	29,397	$	22,285
Minority interest		4,489		6,244		8,654		12,360
Interest expense		280		833		562		2,099
Earnings from continuing operations available to cover fixed charges	$	19,998	$	18,473	$	38,613	$	36,744
Fixed charges (1)	$	280	$	833	$	562	$	2,099
Preferred stock dividends		10,733		7,085		20,502		14,910
Preferred partnership distributions		2,992		4,805		5,683		9,882
Combined fixed charges and preferred distributions	$	14,005	$	12,723	$	26,747	$	26,891
Ratio of earnings from continuing operations to fixed charges		71.4		22.2		68.7		17.5
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.4		1.5		1.4		1.4

	2004		2003		2002		2001		2000
Income from continuing operations	$	46,411	$	46,143	$	45,731	$	43,821	$	44,599
Minority interest		24,733		29,576		28,208		25,440		24,651
Interest expense		3,054		4,015		5,324		1,715		1,481
Earnings from continuing operations available to cover fixed charges	$	74,198	$	79,734	$	79,263	$	70,976	$	70,731
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		24.3		19.9		14.1		25.3		24.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		2.0		2.0		2.8		3.5

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				Six Months Ended
	June 30,				June 30,
	2005		2004		2005		2004
FFO	$	25,761	$	25,448	$	51,641	$	48,895
Interest expense		280		833	��	562		2,099
Minority interest in income – preferred units		2,992		4,805		5,683		9,882
Preferred stock distributions		10,733		7,085		20,502		14,910
FFO available to cover fixed charges	$	39,766	$	38,171	$	78,388	$	75,786
Fixed charges (2)	$	280	$	833	$	562	$	2,099
Preferred stock dividends (3)		10,733		7,085		20,502		13,044
Preferred partnership distributions (3)		2,691		4,805		5,382		9,615
Combined fixed charges and preferred distributions paid	$	13,704	$	12,723	$	26,446	$	24,758
Ratio of FFO to fixed charges		142.0		45.8		139.5		36.1
Ratio of FFO to combined fixed charges and preferred distributions paid		2.9		3.0		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