PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
Income from continuing operations | $ | 23,626 | $ | 27,884 | $ | 68,863 | $ | 77,592 | ||||||||
Interest expense | 5,172 | 1,261 | 15,733 | 3,621 | ||||||||||||
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Earnings from continuing operations available to cover fixed charges | $ | 28,798 | $ | 29,145 | $ | 84,596 | $ | 81,213 | ||||||||
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Fixed charges(1) | $ | 5,172 | $ | 1,261 | $ | 15,733 | $ | 3,621 | ||||||||
Preferred stock dividends | 16,936 | 10,450 | 55,386 | 31,349 | ||||||||||||
Preferred partnership distributions | — | 99 | 323 | (7,091 | ) | |||||||||||
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Combined fixed charges and preferred distributions | $ | 22,108 | $ | 11,810 | $ | 71,442 | $ | 27,879 | ||||||||
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Ratio of earnings from continuing operations to fixed charges | 5.6 | 23.1 | 5.4 | 22.4 | ||||||||||||
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Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 1.3 | 2.5 | 1.2 | 2.9 | ||||||||||||
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| For the Years Ended December 31, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
Income from continuing operations | $ | 99,563 | $ | 96,394 | $ | 91,368 | $ | 84,106 | $ | 80,594 | ||||||||||
Interest expense | 5,455 | 3,534 | 3,552 | 3,952 | 4,130 | |||||||||||||||
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Earnings from continuing operations available to cover fixed charges | $ | 105,018 | $ | 99,928 | $ | 94,920 | $ | 88,058 | $ | 84,724 | ||||||||||
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Fixed charges(1) | $ | 5,455 | $ | 3,534 | $ | 3,552 | $ | 3,952 | $ | 4,130 | ||||||||||
Preferred stock dividends | 41,799 | 46,214 | 17,440 | 46,630 | 50,937 | |||||||||||||||
Preferred partnership distributions | (6,991 | ) | 5,103 | (2,569 | ) | 7,007 | 6,854 | |||||||||||||
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Combined fixed charges and preferred distributions | $ | 40,263 | $ | 54,851 | $ | 18,423 | $ | 57,589 | $ | 61,921 | ||||||||||
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Ratio of earnings from continuing operations to fixed charges | 19.3 | 28.3 | 26.7 | 22.3 | 20.5 | |||||||||||||||
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Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 2.6 | 1.8 | 5.2 | 1.5 | 1.4 | |||||||||||||||
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| (1) | Fixed charges include interest expense. |
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:
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
FFO | $ | 33,643 | $ | 38,783 | $ | 94,608 | $ | 116,971 | ||||||||
Interest expense | 5,172 | 1,261 | 15,733 | 3,621 | ||||||||||||
Net income allocable to noncontrolling interests — preferred units | — | 99 | 323 | (7,091 | ) | |||||||||||
Preferred stock dividends | 16,936 | 10,450 | 55,386 | 31,349 | ||||||||||||
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FFO available to cover fixed charges | $ | 55,751 | $ | 50,593 | $ | 166,050 | $ | 144,850 | ||||||||
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Fixed charges(1) | $ | 5,172 | $ | 1,261 | $ | 15,733 | $ | 3,621 | ||||||||
Preferred stock dividends(2) | 13,088 | 10,450 | 38,219 | 31,349 | ||||||||||||
Preferred partnership distributions(2) | — | 99 | 174 | 298 | ||||||||||||
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Combined fixed charges and preferred distributions paid | $ | 18,260 | $ | 11,810 | $ | 54,126 | $ | 35,268 | ||||||||
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Ratio of adjusted FFO to fixed charges | 10.8 | 40.1 | 10.6 | 40.0 | ||||||||||||
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Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 3.1 | 4.3 | 3.1 | 4.1 | ||||||||||||
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| For the Years Ended December 31, | ||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
FFO | $ | 149,797 | $ | 124,420 | $ | 163,074 | $ | 131,558 | $ | 122,405 | ||||||||||
Interest expense | 5,455 | 3,534 | 3,552 | 3,952 | 4,130 | |||||||||||||||
Net income allocable to noncontrolling interests — preferred units | (6,991 | ) | 5,103 | (2,569 | ) | 7,007 | 6,854 | |||||||||||||
Preferred stock dividends | 41,799 | 46,214 | 17,440 | 46,630 | 50,937 | |||||||||||||||
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FFO available to cover fixed charges | $ | 190,060 | $ | 179,271 | $ | 181,497 | $ | 189,147 | $ | 184,326 | ||||||||||
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Fixed charges(1) | $ | 5,455 | $ | 3,534 | $ | 3,552 | $ | 3,952 | $ | 4,130 | ||||||||||
Preferred stock dividends(2) | 41,799 | 42,730 | 44,662 | 50,858 | 50,937 | |||||||||||||||
Preferred partnership distributions(2) | 398 | 4,521 | 5,848 | 7,007 | 6,854 | |||||||||||||||
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Combined fixed charges and preferred distributions paid | $ | 47,652 | $ | 50,785 | $ | 54,062 | $ | 61,817 | $ | 61,921 | ||||||||||
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Ratio of adjusted FFO to fixed charges | 34.8 | 50.7 | 51.1 | 47.9 | 44.6 | |||||||||||||||
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Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 4.0 | 3.5 | 3.4 | 3.1 | 3.0 | |||||||||||||||
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| (1) | Fixed charges include interest expense. |
| (2) | Excludes the issuance costs related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity. |