PS Business Parks (PSBXP) 10-Q 2006 Q2 Quarterly report

EXHIBIT 12

PS BUSINESS PARKS, INC.

STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2006		2005		2006		2005
Income from continuing operations	$	15,466	$	15,291	$	31,325	$	29,426
Minority interests in continuing operations		3,878		4,509		8,227		8,664
Interest expense		517		280		1,030		562
Earnings from continuing operations available to cover fixed charges	$	19,861	$	20,080	$	40,582	$	38,652
Fixed charges (1)	$	517	$	280	$	1,030	$	562
Preferred stock dividends		12,256		10,733		23,511		20,502
Preferred partnership distributions		2,781		2,992		5,562		5,683
Combined fixed charges and preferred distributions	$	15,554	$	14,005	$	30,103	$	26,747
Ratio of earnings from continuing operations to fixed charges		38.4		71.7		39.4		68.8
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		1.4		1.3		1.4

	2005		2004		2003		2002		2001
Income from continuing operations	$	59,674	$	46,564	$	46,326	$	45,916	$	43,999
Minority interests in continuing operations		16,262		24,785		29,638		28,271		25,500
Interest expense		1,330		3,054		4,015		5,324		1,715
Earnings from continuing operations available to cover fixed charges	$	77,266	$	74,403	$	79,979	$	79,511	$	71,214
Fixed charges (1)	$	1,330	$	3,054	$	4,015	$	5,612	$	2,806
Preferred stock dividends		43,011		33,020		15,784		15,412		8,854
Preferred partnership distributions		10,651		20,245		19,240		17,927		14,107
Combined fixed charges and preferred distributions	$	54,992	$	56,319	$	39,039	$	38,951	$	25,767
Ratio of earnings from continuing operations to fixed charges		58.1		24.4		19.9		14.2		25.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.4		1.3		2.0		2.0		2.8

(1) Fixed charges include interest expense plus capitalized interest.

EXHIBIT 12

PS BUSINESS PARKS, INC.

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,
	2006		2005		2006		2005
FFO (1)	$	25,229	$	25,761	$	51,917	$	51,641
Interest expense		517		280		1,030		562
Minority interest in income — preferred units		2,781		2,992		5,562		5,683
Preferred stock dividends		12,256		10,733		23,511		20,502
FFO available to cover fixed charges	$	40,783	$	39,766	$	82,020	$	78,388
Fixed charges (2)	$	517	$	280	$	1,030	$	562
Preferred stock dividends (3)		10,598		10,733		21,853		20,502
Preferred partnership distributions (3)		2,781		2,691		5,562		5,382
Combined fixed charges and preferred distributions paid	$	13,896	$	13,704	$	28,445	$	26,446
Ratio of adjusted FFO to fixed charges		78.9		142.0		79.6		139.5
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		2.9		2.9		2.9		3.0

	2005		2004		2003		2002		2001
FFO (1)	$	102,463	$	97,214	$	97,448	$	104,543	$	95,472
Interest expense		1,330		3,054		4,015		5,324		1,715
Minority interest in income — preferred units		10,651		20,245		19,240		17,927		14,107
Preferred stock dividends		43,011		33,020		15,784		15,412		8,854
FFO available to cover fixed charges	$	157,455	$	153,533	$	136,487	$	143,206	$	120,148
Fixed charges (2)	$	1,330	$	3,054	$	4,015	$	5,612	$	2,806
Preferred stock dividends (3)		43,011		31,154		15,784		15,412		8,854
Preferred partnership distributions (3)		10,350		17,106		19,240		17,927		14,107
Combined fixed charges and preferred distributions paid	$	54,691	$	51,314	$	39,039	$	38,951	$	25,767
Ratio of adjusted FFO to fixed charges		118.4		50.3		34.0		25.5		42.8
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		2.9		3.0		3.5		3.7		4.7

(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.