PS Business Parks (PSBXP) 10-Q 2008 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)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
Net income	$	18,152	$	17,023	$	52,090	$	52,152
Minority interests		3,662		3,213		10,153		9,888
Interest expense		988		1,009		2,971		3,128
Earnings from operations available to cover fixed charges	$	22,802	$	21,245	$	65,214	$	65,168
Fixed charges	$	988	$	1,009	$	2,971	$	3,128
Preferred stock dividends		12,756		12,756		38,269		38,181
Preferred partnership distributions		1,752		1,752		5,256		5,103
Combined fixed charges and preferred distributions	$	15,496	$	15,517	$	46,496	$	46,412
Ratio of earnings from operations to fixed charges		23.1		21.1		22.0		20.8
Ratio of earnings from operations to combined fixed charges and preferred distributions		1.5		1.4		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)

Supplemental Disclosure of Ratio of Funds from Operations (“FFO”) to Fixed Charges:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2008		2007		2008		2007
FFO	$	32,009	$	31,013	$	93,988	$	90,597
Interest expense		988		1,009		2,971		3,128
Minority interest in income — preferred units		1,752		1,752		5,256		5,103
Preferred stock dividends		12,756		12,756		38,269		38,181
FFO available to cover fixed charges	$	47,505	$	46,530	$	140,484	$	137,009
Fixed charges	$	988	$	1,009	$	2,971	$	3,128
Preferred stock dividends		12,756		12,756		38,269		38,181
Preferred partnership distributions		1,752		1,752		5,256		5,103
Combined fixed charges and preferred distributions paid	$	15,496	$	15,517	$	46,496	$	46,412
Ratio of adjusted FFO to fixed charges		48.1		46.1		47.3		43.8
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.1		3.0		3.0		3.0

	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.