PS Business Parks (PSBXP) 10-Q 2005 Q3 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				Nine Months Ended
	September 30,				September 30,
	2005		2004		2005		2004
Income from continuing operations	$	15,105	$	9,825	$	44,502	$	32,110
Minority interest in continuing operations		3,769		8,112		12,423		20,472
Interest expense		304		513		866		2,612
Earnings from continuing operations available to cover fixed charges	$	19,178	$	18,450	$	57,791	$	55,194
Fixed charges (1)	$	304	$	513	$	866	$	2,612
Preferred stock dividends		11,255		8,498		31,757		23,408
Preferred partnership distributions		2,460		7,666		8,143		17,548
Combined fixed charges and preferred distributions	$	14,019	$	16,677	$	40,766	$	43,568
Ratio of earnings from continuing operations to fixed charges		63.1		36.0		66.7		21.1
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.4		1.1		1.4		1.3

	2004		2003		2002		2001		2000
Income from continuing operations	$	46,449	$	46,143	$	45,731	$	43,821	$	44,599
Minority interest in continuing operations		24,746		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	$	74,249	$	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				Nine Months Ended
	September 30,				September 30,
	2005		2004		2005		2004
FFO	$	25,770	$	22,289	$	77,411	$	71,184
Interest expense		304		513		866		2,612
Minority interest in income — preferred units		2,460		7,666		8,143		17,548
Preferred stock distributions		11,255		8,498		31,757		23,408
FFO available to cover fixed charges	$	39,789	$	38,966	$	118,177	$	114,752
Fixed charges (2)	$	304	$	513	$	866	$	2,612
Preferred stock dividends (3)		11,255		8,498		31,757		21,542
Preferred partnership distributions (3)		2,460		4,794		7,842		14,409
Combined fixed charges and preferred distributions paid	$	14,019	$	13,805	$	40,465	$	38,563
Ratio of FFO to fixed charges		130.9		76.0		136.5		43.9
Ratio of FFO to combined fixed charges and preferred distributions paid		2.8		2.8		2.9		3.0

	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