PS Business Parks (PSBXP) 10-Q 2006 Q3 Quarterly report

PS BUSINESS PARKS, INC.

EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2006		2005		2006		2005
Income from continuing operations	$	14,736	$	15,142	$	46,061	$	44,568
Minority interests in continuing operations		5,223		3,781		13,450		12,445
Interest expense		628		304		1,658		866
Earnings from continuing operations available to cover fixed charges	$	20,587	$	19,227	$	61,169	$	57,879
Fixed charges (1)	$	628	$	304	$	1,658	$	866
Preferred stock dividends		11,258		11,255		34,769		31,757
Preferred partnership distributions		4,038		2,460		9,600		8,143
Combined fixed charges and preferred distributions	$	15,924	$	14,019	$	46,027	$	40,766
Ratio of earnings from continuing operations to fixed charges		32.8		63.2		36.9		66.8
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.

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,
	2006		2005		2006		2005
FFO (1)	$	26,847	$	25,770	$	78,764	$	77,411
Interest expense		628		304		1,658		866
Minority interest in income — preferred units		4,038		2,460		9,600		8,143
Preferred stock dividends		11,258		11,255		34,769		31,757
FFO available to cover fixed charges	$	42,771	$	39,789	$	124,791	$	118,177
Fixed charges (2)	$	628	$	304	$	1,658	$	866
Preferred stock dividends (3)		11,258		11,255		33,111		31,757
Preferred partnership distributions (3)		2,672		2,460		8,234		7,842
Combined fixed charges and preferred distributions paid	$	14,558	$	14,019	$	43,003	$	40,465
Ratio of adjusted FFO to fixed charges		68.1		130.9		75.3		136.5
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		2.9		2.8		2.9		2.9

	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.