PS Business Parks (PSBXP) 10-Q 2007 Q2 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				Six Months Ended
	June 30,				June 30,
	2007		2006		2007		2006
Income from continuing operations	$	16,538	$	15,466	$	35,129	$	31,325
Minority interests in continuing operations		3,046		3,878		6,675		8,227
Interest expense		1,012		517		2,119		1,030
Earnings from continuing operations available to cover fixed charges	$	20,596	$	19,861	$	43,923	$	40,582
Fixed charges	$	1,012	$	517	$	2,119	$	1,030
Preferred stock dividends		12,757		12,256		25,425		23,511
Preferred partnership distributions		1,752		2,781		3,351		5,562
Combined fixed charges and preferred distributions	$	15,521	$	15,554	$	30,895	$	30,103
Ratio of earnings from continuing operations to fixed charges		20.4		38.4		20.7		39.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		1.3		1.4		1.3

	2006		2005		2004		2003		2002
Income from continuing operations	$	62,937	$	59,674	$	46,564	$	46,326	$	45,916
Minority interests in continuing operations		16,268		16,262		24,785		29,638		28,271
Interest expense		2,575		1,330		3,054		4,015		5,324
Earnings from continuing operations available to cover fixed charges	$	81,780	$	77,266	$	74,403	$	79,979	$	79,511
Fixed charges (1)	$	2,575	$	1,330	$	3,054	$	4,015	$	5,612
Preferred stock dividends		47,933		43,011		33,020		15,784		15,412
Preferred partnership distributions		11,155		10,651		20,245		19,240		17,927
Combined fixed charges and preferred distributions	$	61,663	$	54,992	$	56,319	$	39,039	$	38,951
Ratio of earnings from continuing operations to fixed charges		31.8		58.1		24.4		19.9		14.2
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		1.4		1.3		2.0		2.0

(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,
	2007		2006		2007		2006
FFO	$	29,991	$	25,229	$	59,584	$	51,917
Interest expense		1,012		517		2,119		1,030
Minority interest in income — preferred units		1,752		2,781		3,351		5,562
Preferred stock dividends		12,757		12,256		25,425		23,511
FFO available to cover fixed charges	$	45,512	$	40,783	$	90,479	$	82,020
Fixed charges	$	1,012	$	517	$	2,119	$	1,030
Preferred stock dividends (3)		12,757		10,598		25,425		21,853
Preferred partnership distributions (3)		1,752		2,781		3,351		5,562
Combined fixed charges and preferred distributions paid	$	15,521	$	13,896	$	30,895	$	28,445
Ratio of adjusted FFO to fixed charges		45.0		78.9		42.7		79.6
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		2.9		2.9		2.9		2.9

	2006		2005		2004		2003		2002
FFO (1)	$	106,235	$	102,463	$	97,214	$	97,448	$	104,543
Interest expense		2,575		1,330		3,054		4,015		5,324
Minority interest in income — preferred units		11,155		10,651		20,245		19,240		17,927
Preferred stock dividends		47,933		43,011		33,020		15,784		15,412
FFO available to cover fixed charges	$	167,898	$	157,455	$	153,533	$	136,487	$	143,206
Fixed charges (2)	$	2,575	$	1,330	$	3,054	$	4,015	$	5,612
Preferred stock dividends (3)		44,553		43,011		31,154		15,784		15,412
Preferred partnership distributions (3)		9,789		10,350		17,106		19,240		17,927
Combined fixed charges and preferred distributions paid	$	56,917	$	54,691	$	51,314	$	39,039	$	38,951
Ratio of adjusted FFO to fixed charges		65.2		118.4		50.3		34.0		25.5
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		2.9		2.9		3.0		3.5		3.7

(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.