PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| Net income | $ | 17,380 | $ | 16,538 | $ | 33,938 | $ | 35,129 | ||||||||
| Minority interests | 3,391 | 3,046 | 6,491 | 6,675 | ||||||||||||
| Interest expense | 990 | 1,012 | 1,983 | 2,119 | ||||||||||||
| Earnings from operations available to cover fixed charges | $ | 21,761 | $ | 20,596 | $ | 42,412 | $ | 43,923 | ||||||||
| Fixed charges | $ | 990 | $ | 1,012 | $ | 1,983 | $ | 2,119 | ||||||||
| Preferred stock dividends | 12,757 | 12,757 | 25,513 | 25,425 | ||||||||||||
| Preferred partnership distributions | 1,752 | 1,752 | 3,504 | 3,351 | ||||||||||||
| Combined fixed charges and preferred distributions | $ | 15,499 | $ | 15,521 | $ | 31,000 | $ | 30,895 | ||||||||
| Ratio of earnings from operations to fixed charges | 22.0 | 20.4 | 21.4 | 20.7 | ||||||||||||
| Ratio of earnings from operations to combined fixed charges and preferred distributions | 1.4 | 1.3 | 1.4 | 1.4 | ||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
| Income from continuing operations | $ | 68,666 | $ | 62,937 | $ | 59,674 | $ | 46,564 | $ | 46,326 | ||||||||||
| Minority interests in continuing operations | 13,009 | 16,268 | 16,262 | 24,785 | 29,638 | |||||||||||||||
| Interest expense | 4,130 | 2,575 | 1,330 | 3,054 | 4,015 | |||||||||||||||
| Earnings from continuing operations available to cover fixed charges | $ | 85,805 | $ | 81,780 | $ | 77,266 | $ | 74,403 | $ | 79,979 | ||||||||||
| Fixed charges | $ | 4,130 | $ | 2,575 | $ | 1,330 | $ | 3,054 | $ | 4,015 | ||||||||||
| Preferred stock dividends | 50,937 | 47,933 | 43,011 | 33,020 | 15,784 | |||||||||||||||
| Preferred partnership distributions | 6,854 | 11,155 | 10,651 | 20,245 | 19,240 | |||||||||||||||
| Combined fixed charges and preferred distributions | $ | 61,921 | $ | 61,663 | $ | 54,992 | $ | 56,319 | $ | 39,039 | ||||||||||
| Ratio of earnings from continuing operations to fixed charges | 20.8 | 31.8 | 58.1 | 24.4 | 19.9 | |||||||||||||||
| Ratio of earnings from continuing operations to combined fixed charges and preferred distributions | 1.4 | 1.3 | 1.4 | 1.3 | 2.0 | |||||||||||||||
PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, in thousands, except ratio data)
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:
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| FFO | $ | 31,382 | $ | 29,991 | $ | 61,979 | $ | 59,584 | ||||||||
| Interest expense | 990 | 1,012 | 1,983 | 2,119 | ||||||||||||
| Minority interest in income — preferred units | 1,752 | 1,752 | 3,504 | 3,351 | ||||||||||||
| Preferred stock dividends | 12,757 | 12,757 | 25,513 | 25,425 | ||||||||||||
| FFO available to cover fixed charges | $ | 46,881 | $ | 45,512 | $ | 92,979 | $ | 90,479 | ||||||||
| Fixed charges | $ | 990 | $ | 1,012 | $ | 1,983 | $ | 2,119 | ||||||||
| Preferred stock dividends | 12,757 | 12,757 | 25,513 | 25,425 | ||||||||||||
| Preferred partnership distributions | 1,752 | 1,752 | 3,504 | 3,351 | ||||||||||||
| Combined fixed charges and preferred distributions paid | $ | 15,499 | $ | 15,521 | $ | 31,000 | $ | 30,895 | ||||||||
| Ratio of adjusted FFO to fixed charges | 47.4 | 45.0 | 46.9 | 42.7 | ||||||||||||
| Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 3.0 | 2.9 | 3.0 | 2.9 | ||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
FFO(1) | $ | 122,405 | $ | 106,235 | $ | 102,463 | $ | 97,214 | $ | 97,448 | ||||||||||
| Interest expense | 4,130 | 2,575 | 1,330 | 3,054 | 4,015 | |||||||||||||||
| Minority interest in income — preferred units | 6,854 | 11,155 | 10,651 | 20,245 | 19,240 | |||||||||||||||
| Preferred stock dividends | 50,937 | 47,933 | 43,011 | 33,020 | 15,784 | |||||||||||||||
| FFO available to cover fixed charges | $ | 184,326 | $ | 167,898 | $ | 157,455 | $ | 153,533 | $ | 136,487 | ||||||||||
| Fixed charges | $ | 4,130 | $ | 2,575 | $ | 1,330 | $ | 3,054 | $ | 4,015 | ||||||||||
Preferred stock dividends(2) | 50,937 | 44,553 | 43,011 | 31,154 | 15,784 | |||||||||||||||
Preferred partnership distributions(2) | 6,854 | 9,789 | 10,350 | 17,106 | 19,240 | |||||||||||||||
| Combined fixed charges and preferred distributions paid | $ | 61,921 | $ | 56,917 | $ | 54,691 | $ | 51,314 | $ | 39,039 | ||||||||||
| Ratio of adjusted FFO to fixed charges | 44.6 | 65.2 | 118.4 | 50.3 | 34.0 | |||||||||||||||
| Ratio of adjusted FFO to combined fixed charges and preferred distributions paid | 3.0 | 2.9 | 2.9 | 3.0 | 3.5 | |||||||||||||||
| (1) | FFO has been adjusted to include the effect of impairment charges. | |
| (2) | Excludes EITF Topic D-42 distributions. |