PS Business Parks (PSBXP) 10-Q 2009 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,
	2009			2008
Net income	$	22,051		$	19,658
Net income allocable to noncontrolling interests		5,058			3,100
Interest expense		930			993
Earnings from operations available to cover fixed charges	$	28,039		$	23,751
Fixed charges(1)	$	930		$	993
Preferred stock dividends		(16,026	)		12,756
Preferred partnership distributions		(6,714	)		1,752
Combined fixed charges and preferred distributions	$	(21,810	)	$	15,501
Ratio of earnings from operations to fixed charges		30.1			23.9
Ratio of earnings from operations to combined fixed charges and preferred distributions			(2)		1.5

	2008		2007		2006		2005		2004
Income from continuing operations	$	70,044	$	68,666	$	62,937	$	59,674	$	46,564
Net income allocable to noncontrolling interests		15,303		13,009		16,268		16,262		24,785
Interest expense		3,952		4,130		2,575		1,330		3,054
Earnings from continuing operations available to cover fixed charges	$	89,299	$	85,805	$	81,780	$	77,266	$	74,403
Fixed charges(1)	$	3,952	$	4,130	$	2,575	$	1,330	$	3,054
Preferred stock dividends		46,630		50,937		47,933		43,011		33,020
Preferred partnership distributions		7,007		6,854		11,155		10,651		20,245
Combined fixed charges and preferred distributions	$	57,589	$	61,921	$	61,663	$	54,992	$	56,319
Ratio of earnings from continuing operations to fixed charges		22.6		20.8		31.8		58.1		24.4
Ratio of earnings from continuing operations to combined fixed charges and preferred distributions		1.6		1.4		1.3		1.4		1.3

(1)	Fixed charges include interest expense.
(2)	Not meaningful as combined fixed charges and preferred stock dividends are negative.

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,
	2009			2008
FFO	$	67,124		$	30,544
Interest expense		930			993
Net income allocable to noncontrolling interests — preferred units		(6,714	)		1,752
Preferred stock dividends		(16,026	)		12,756
FFO available to cover fixed charges	$	45,314		$	46,045
Fixed charges(1)	$	930		$	993
Preferred stock dividends(2)		11,196			12,756
Preferred partnership distributions(2)		1,703			1,752
Combined fixed charges and preferred distributions paid	$	13,829		$	15,501
Ratio of adjusted FFO to fixed charges		48.7			46.4
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.3			3.0

	2008		2007		2006		2005		2004
FFO	$	131,558	$	122,405	$	106,235	$	102,463	$	97,214
Interest expense		3,952		4,130		2,575		1,330		3,054
Net income allocable to noncontrolling interests — preferred units		7,007		6,854		11,155		10,651		20,245
Preferred stock dividends		46,630		50,937		47,933		43,011		33,020
FFO available to cover fixed charges	$	189,147	$	184,326	$	167,898	$	157,455	$	153,533
Fixed charges(1)	$	3,952	$	4,130	$	2,575	$	1,330	$	3,054
Preferred stock dividends(2)		50,858		50,937		44,553		43,011		31,154
Preferred partnership distributions(2)		7,007		6,854		9,789		10,350		17,106
Combined fixed charges and preferred distributions paid	$	61,817	$	61,921	$	56,917	$	54,691	$	51,314
Ratio of adjusted FFO to fixed charges		47.9		44.6		65.2		118.4		50.3
Ratio of adjusted FFO to combined fixed charges and preferred distributions paid		3.1		3.0		2.9		2.9		3.0

(1)	Fixed charges include interest expense.
(2)	Excludes Emerging Issues Task Force Topic D-42 distributions.