PS Business Parks (PSBXP) 10-Q 2013 Q2 Quarterly report

Exhibit 12

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					For the Six Months
			Ended June 30,					Ended June 30,
			2013			2012		2013			2012
Income from continuing operations			$	26,476		$	23,331	$	51,465		$	45,237
Interest expense				3,958			5,213		8,497			10,561
Earnings from continuing operations available to cover fixed charges			$	30,434		$	28,544	$	59,962		$	55,798
Fixed Charges(1)			$	3,958		$	5,213	$	8,497		$	10,561
Preferred stock dividends				15,122			21,264		28,972			38,450
Preferred partnership distributions				—			224		—			323
Combined fixed charges and preferred distributions			$	19,080		$	26,701	$	37,469		$	49,334
Ratio of earnings from continuing operations to fixed charges				7.7			5.5		7.1			5.3
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions				1.6			1.1		1.6			1.1
	For the Years Ended December 31,
	2012		2011			2010		2009			2008
Income from continuing operations	$	94,395	$	99,563		$	96,394	$	91,368		$	84,106
Interest expense		20,618		5,455			3,534		3,552			3,952
Earnings from continuing operations available to cover fixed charges	$	115,013	$	105,018		$	99,928	$	94,920		$	88,058
										��
Fixed Charges(1)	$	20,618	$	5,455		$	3,534	$	3,552		$	3,952
Preferred stock dividends		69,136		41,799			46,214		17,440			46,630
Preferred partnership distributions		323		(6,991	)		5,103		(2,569	)		7,007
Combined fixed charges and preferred distributions	$	90,077	$	40,263		$	54,851	$	18,423		$	57,589
Ratio of earnings from continuing operations to fixed charges		5.6		19.3			28.3		26.7			22.3
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.3		2.6			1.8		5.2			1.5

⁽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					For the Six Months
			Ended June 30,					Ended June 30,
			2013			2012		2013			2012
FFO			$	37,983		$	29,106	$	76,083		$	60,965
Interest expense				3,958			5,213		8,497			10,561
Net income allocable to noncontrolling interests — preferred units				—			224		—			323
Preferred stock dividends				15,122			21,264		28,972			38,450
FFO available to cover fixed charges			$	57,063		$	55,807	$	113,552		$	110,299
Fixed Charges(1)			$	3,958			5,213	$	8,497			10,561
Preferred stock dividends(2)				15,122			13,205		28,972			25,131
Preferred partnership distributions(2)				—			75		—			174
Combined fixed charges and preferred distributions paid			$	19,080		$	18,493	$	37,469		$	35,866
Ratio of adjusted FFO to fixed charges				14.4			10.7		13.4			10.4
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid				3.0			3.0		3.0			3.1
	For the Years Ended December 31,
	2012		2011			2010		2009			2008
FFO	$	134,472	$	149,797		$	124,420	$	163,074		$	131,558
Interest expense		20,618		5,455			3,534		3,552			3,952
Net income allocable to noncontrolling interests — preferred units		323		(6,991	)		5,103		(2,569	)		7,007
Preferred stock dividends		69,136		41,799			46,214		17,440			46,630
FFO available to cover fixed charges	$	224,549	$	190,060		$	179,271	$	181,497		$	189,147
Fixed Charges(1)	$	20,618	$	5,455		$	3,534	$	3,552		$	3,952
Preferred stock dividends(2)		51,969		41,799			42,730		44,662			50,858
Preferred partnership distributions(2)		174		398			4,521		5,848			7,007
Combined fixed charges and preferred distributions paid	$	72,761	$	47,652		$	50,785	$	54,062		$	61,817
Ratio of adjusted FFO to fixed charges		10.9		34.8			50.7		51.1			47.9
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.1		4.0			3.5		3.4			3.1

⁽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.