PS Business Parks (PSBXP) 10-Q 2012 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)

	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
Earnings from continuing operations available to cover fixed charges	$	28,798	$	29,145	$	84,596	$	81,213
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	)
Combined fixed charges and preferred distributions	$	22,108	$	11,810	$	71,442	$	27,879
Ratio of earnings from continuing operations to fixed charges		5.6		23.1		5.4		22.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		2.5		1.2		2.9

	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
Earnings from continuing operations available to cover fixed charges	$	105,018		$	99,928	$	94,920		$	88,058	$	84,724
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
Combined fixed charges and preferred distributions	$	40,263		$	54,851	$	18,423		$	57,589	$	61,921
Ratio of earnings from continuing operations to fixed charges		19.3			28.3		26.7			22.3		20.5
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		2.6			1.8		5.2			1.5		1.4

⁽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
FFO available to cover fixed charges	$	55,751	$	50,593	$	166,050	$	144,850
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
Combined fixed charges and preferred distributions paid	$	18,260	$	11,810	$	54,126	$	35,268
Ratio of adjusted FFO to fixed charges		10.8		40.1		10.6		40.0
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.1		4.3		3.1		4.1

	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
FFO available to cover fixed charges	$	190,060		$	179,271	$	181,497		$	189,147	$	184,326
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
Combined fixed charges and preferred distributions paid	$	47,652		$	50,785	$	54,062		$	61,817	$	61,921
Ratio of adjusted FFO to fixed charges		34.8			50.7		51.1			47.9		44.6
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		4.0			3.5		3.4			3.1		3.0

⁽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.