PS Business Parks (PSBXP) 10-Q 2014 Q1 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 March 31,
	2014		2013
Income from continuing operations	$	27,801	$	24,989
Interest expense		3,353		4,539
Earnings from continuing operations available to cover fixed charges	$	31,154	$	29,528
Fixed charges(1)	$	3,578	$	4,539
Preferred stock dividends		15,122		13,850
Combined fixed charges and preferred distributions	$	18,700	$	18,389
Ratio of earnings from continuing operations to fixed charges		8.7		6.5
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.7		1.6

	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
Earnings from continuing operations available to cover fixed charges	$	132,218	$	115,013	$	105,018		$	99,928	$	94,920
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	)
Combined fixed charges and preferred distributions	$	75,649	$	90,077	$	40,263		$	54,851	$	18,423
Ratio of earnings from continuing operations to fixed charges		8.0		5.6		19.3			28.3		26.7
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.7		1.3		2.6			1.8		5.2

⁽¹⁾  Fixed charges include interest expense and 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:

	For The Three Months Ended March 31,
	2014		2013
FFO	$	41,120	$	38,100
Interest expense		3,353		4,539
Preferred stock dividends		15,122		13,850
FFO available to cover fixed charges	$	59,595	$	56,489
Fixed charges(1)	$	3,578		4,539
Preferred stock dividends(2)		15,122		13,850
Combined fixed charges and preferred distributions paid	$	18,700	$	18,389
Ratio of adjusted FFO to fixed charges		16.7		12.4
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.2		3.1

	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
FFO available to cover fixed charges	$	241,135	$	224,549	$	190,060		$	179,271	$	181,497
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
Combined fixed charges and preferred distributions paid	$	75,649	$	72,761	$	47,652		$	50,785	$	54,062
Ratio of adjusted FFO to fixed charges		14.7		10.9		34.8			50.7		51.1
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.2		3.1		4.0			3.5		3.4

⁽¹⁾  Fixed charges include interest expense and capitalized interest.

⁽²⁾  Excludes the issuance costs related to the redemption/repurchase of preferred equity and the gain on the repurchase of preferred equity.