Exhibit 12
PS BUSINESS PARKS, INC.
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(in thousands, except ratio data)
| For The Years Ended December 31, | ||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
Income from continuing operations | $ | 116,144 | $ | 94,395 | $ | 99,563 | $ | 96,394 | $ | 91,368 | ||||||||||
Interest expense | 16,074 | 20,618 | 5,455 | 3,534 | 3,552 | |||||||||||||||
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Earnings from continuing operations available to cover fixed charges | $ | 132,218 | $ | 115,013 | $ | 105,018 | $ | 99,928 | $ | 94,920 | ||||||||||
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Fixed charges (1) | $ | 16,433 | $ | 20,618 | $ | 5,455 | $ | 3,534 | $ | 3,552 | ||||||||||
Preferred stock dividends | 59,216 | 69,136 | 41,799 | 46,214 | 17,440 | |||||||||||||||
Preferred partnership distributions | — | 323 | (6,991 | ) | 5,103 | (2,569 | ) | |||||||||||||
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Combined fixed charges and preferred distributions | $ | 75,649 | $ | 90,077 | $ | 40,263 | $ | 54,851 | $ | 18,423 | ||||||||||
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Ratio of earnings from continuing operations to fixed charges | 8.0 | 5.6 | 19.3 | 28.3 | 26.7 | |||||||||||||||
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Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 1.7 | 1.3 | 2.6 | 1.8 | 5.2 | |||||||||||||||
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Supplemental disclosure of Ratio of Funds from Operations (“FFO”) to fixed charges:
| For The Years Ended December 31, | ||||||||||||||||||||
| 2013 | 2012 | 2011 | 2010 | 2009 | ||||||||||||||||
FFO | $ | 165,845 | $ | 134,472 | $ | 149,797 | $ | 124,420 | $ | 163,074 | ||||||||||
Interest expense | 16,074 | 20,618 | 5,455 | 3,534 | 3,552 | |||||||||||||||
Net income allocable to noncontrolling interests — preferred units | — | 323 | (6,991 | ) | 5,103 | (2,569 | ) | |||||||||||||
Preferred stock dividends | 59,216 | 69,136 | 41,799 | 46,214 | 17,440 | |||||||||||||||
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FFO available to cover fixed charges | $ | 241,135 | $ | 224,549 | $ | 190,060 | $ | 179,271 | $ | 181,497 | ||||||||||
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Fixed charges (1) | $ | 16,433 | $ | 20,618 | $ | 5,455 | $ | 3,534 | $ | 3,552 | ||||||||||
Preferred stock dividends (2) | 59,216 | 51,969 | 41,799 | 42,730 | 44,662 | |||||||||||||||
Preferred partnership distributions (2) | — | 174 | 398 | 4,521 | 5,848 | |||||||||||||||
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Combined fixed charges and preferred distributions paid | $ | 75,649 | $ | 72,761 | $ | 47,652 | $ | 50,785 | $ | 54,062 | ||||||||||
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Ratio of available FFO to fixed charges | 14.7 | 10.9 | 34.8 | 50.7 | 51.1 | |||||||||||||||
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Ratio of available FFO to combined fixed charges preferred distributions paid | 3.2 | 3.1 | 4.0 | 3.5 | 3.4 | |||||||||||||||
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| (1) | Fixed charges include interest expense and capitalized interest. |
| (2) | Excludes the charge for the issuance costs related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity. |