PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Nine Months Ended
September 30,
--------------------------
2004 2003
------------ -----------
Net income........................................... $ 258,942 $ 250,683
Add: Minority interest in income............... 39,898 32,582
Less: Minority interests in income which do not
have fixed charges........................... (12,681) (10,031)
------------ -----------
Adjusted net income.................................. 286,159 273,234
Interest expense................................ 100 1,121
------------ -----------
Total earnings available to cover fixed charges...... $ 286,259 $ 274,355
============ ===========
Total fixed charges - interest expense (including
capitalized interest)............................. $ 2,822 $ 5,507
============ ===========
Cumulative Preferred Stock dividends................. $ 117,293 $ 107,914
Preferred partnership unit distributions............. 24,907 20,179
------------ -----------
Total preferred distributions, prior to EITF Topic D-42 142,200 128,093
Allocations pursuant to EITF Topic D-42 6,795 3,397
------------ -----------
Total preferred distributions, including EITF Topic D-42 $ 148,995 $ 131,490
============ ===========
Total combined fixed charges and preferred
distributions, prior to EITF Topic D-42.............. $ 145,022 $ 133,600
============ ===========
Total combined fixed charges and preferred
distributions, including EITF Topic D-42............. $ 151,817 $ 136,997
============ ===========
Ratio of earnings to fixed charges.................. 101.43x 49.82x
============ ===========
Ratio of earnings to combined fixed charges and
preferred distributions, prior to EITF Topic D-42. 1.97x 2.05x
============ ===========
Ratio of earnings to combined fixed charges and
preferred distributions, including EITF Topic D-42 1.89x 2.00x
============ ===========
Exhibit 12
PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
---------------------------------------------------------------------------
2003 2002 2001 2000 1999
----------- ----------- ----------- ----------- ------------
(amounts in thousands, except ratios)
Net income........................................... $ 336,653 $ 318,738 $ 324,208 $ 297,088 $ 287,885
Add: Minority interest in income............... 43,703 44,087 46,015 38,356 16,006
Less: Minority interests in income which do not
have fixed charges........................... (13,610) (14,307) (11,243) (10,549) (13,362)
----------- ----------- ----------- ----------- ------------
Adjusted net income.................................. 366,746 348,518 358,980 324,895 290,529
Interest expense................................ 1,121 3,809 3,227 3,293 7,971
----------- ----------- ----------- ----------- ------------
Total earnings available to cover fixed charges...... $ 367,867 $ 352,327 $ 362,207 $ 328,188 $ 298,500
=========== =========== =========== =========== ============
Total fixed charges - interest expense (including
capitalized interest)............................. $ 7,131 $ 10,322 $ 12,219 $ 13,071 $ 12,480
=========== =========== =========== =========== ============
Cumulative Preferred Stock dividends................. $ 146,196 $ 148,926 $ 117,979 $ 100,138 $ 94,793
Preferred partnership unit distributions............. 26,906 26,906 31,737 24,859 -
----------- ----------- ----------- ----------- ------------
Total preferred distributions, prior to EITF Topic D-42 173,102 175,832 149,716 124,997 94,793
Allocations pursuant to EITF Topic D-42 7,120 6,888 14,835 - -
----------- ----------- ----------- ----------- ------------
Total preferred distributions, including EITF Topic D-42 $ 180,222 $ 182,720 $ 164,551 $ 124,997 $ 94,793
=========== =========== =========== =========== ============
Total combined fixed charges and preferred
distributions, prior to EITF Topic D-42.............. $ 180,233 $ 186,154 $ 161,935 $ 138,068 $ 107,273
=========== =========== =========== =========== ============
Total combined fixed charges and preferred
distributions, including EITF Topic D-42............. $ 187,353 $ 193,042 $ 176,770 $ 138,068 $ 107,273
=========== =========== =========== =========== ============
Ratio of earnings to fixed charges.................. 51.59x 34.13x 29.64x 25.11x 23.92x
=========== =========== =========== =========== ============
Ratio of earnings to combined fixed charges and
preferred distributions, prior to EITF Topic D-42. 2.04x 1.89x 2.24x 2.38x 2.78x
=========== =========== =========== =========== ============
Ratio of earnings to combined fixed charges and
preferred distributions, including EITF Topic D-42 1.96x 1.83x 2.05x 2.38x 2.78x
=========== =========== =========== =========== ============
Exhibit 12
SUPPLEMENTAL DISCLOSURE OF RATIO OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION ("EBITDA") TO FIXED CHARGES (A):
Nine Months Ended
September 30,
-------------------------
2004 2003
----------- -----------
(amounts in thousands, except ratios)
Net income........................................................... $ 258,942 $ 250,683
Less: (Gain)/Loss on sale of real estate, impairment of real
estate assets and real estate investments including
discontinued operations...................................... (1,286) (807)
Less: Our equity share of EITF D-42 charges, impairment
(gain)/loss on sale of real estate........................... 2,109 (453)
Add: Depreciation and amortization............................. 135,515 135,770
Less: Depreciation allocable to minority interests............. (4,851) (4,740)
Add: Depreciation included in equity in earnings of real estate
entities..................................................... 25,055 20,353
Add: Depreciation and amortization included in discontinued
operations................................................... 1,105 3,179
Add: Minority interest - preferred............................. 26,970 20,179
Add: Interest expense.......................................... 100 1,121
----------- -----------
EBITDA available to cover fixed charges.............................. $ 443,659 $425,285
=========== ===========
Total fixed charges - interest expense (including capitalized
interest)......................................................... $ 2,822 $ 5,507
=========== ===========
Cumulative Preferred Stock dividends................................. $ 117,293 $ 107,914
Preferred partnership unit distributions............................. 24,907 20,179
----------- -----------
Total preferred distributions, prior to EITF Topic D-42.............. 142,200 128,093
Allocations pursuant to EITF Topic D-42......................... 8,858 3,397
----------- -----------
Total preferred distributions, including EITF Topic D-42............. $ 151,058 $ 131,490
=========== ===========
Total combined fixed charges and preferred distributions, prior to
EITF Topic D-42...................................................... $ 145,022 $ 133,600
=========== ===========
Total combined fixed charges and preferred distributions, including
EITF Topic D-42...................................................... $ 153,880 $ 136,997
=========== ===========
Ratio of earnings to fixed charges.................................. 157.21x 77.22x
=========== ===========
Ratio of earnings to combined fixed charges and preferred
distributions, prior to EITF Topic D-42........................... 3.06x 3.18x
=========== ===========
Ratio of earnings to combined fixed charges and preferred
distributions, including EITF Topic D-42.......................... 2.88x 3.10x
=========== ===========
SUPPLEMENTAL DISCLOSURE OF RATIO OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION ("EBITDA") TO FIXED CHARGES (A):
For the Year Ended December 31,
--------------------------------------------------------------
2003 2002 2001 2000 1999
------------ ---------- ---------- ---------- ------------
(amounts in thousands, except ratios)
Net income........................................................... $ 336,653 $ 318,738 $ 324,208 $ 297,088 $ 287,885
Less: (Gain)/Loss on sale of real estate, impairment of real
estate assets and real estate investments including
discontinued operations...................................... (5,378) 2,541 (4,091) (576) (2,154)
Less: Our equity share of EITF D-42 charges, impairment
(gain)/loss on sale of real estate........................... (187) (3,737) - (3,210) -
Add: Depreciation and amortization............................. 184,171 176,766 163,745 146,767 135,695
Less: Depreciation allocable to minority interests............. (6,328) (8,087) (7,847) (7,138) (9,294)
Add: Depreciation included in equity in earnings of real estate
entities..................................................... 27,753 27,078 25,096 21,825 19,721
Add: Depreciation and amortization included in discontinued
operations................................................... 3,832 4,882 4,316 2,200 2,024
Add: Minority interest - preferred............................. 26,906 26,906 31,737 24,859 -
Add: Interest expense.......................................... 1,121 3,809 3,227 3,293 7,971
------------ ---------- ---------- ---------- ------------
EBITDA available to cover fixed charges.............................. $ 568,543 $ 548,896 $ 540,391 $ 485,108 $ 441,848
============ ========== ========== ========== ============
Total fixed charges - interest expense (including capitalized
interest)......................................................... $ 7,131 $ 10,322 $ 12,219 $ 13,071 $ 12,480
============ ========== ========== ========== ============
Cumulative Preferred Stock dividends................................. $ 146,196 $ 148,926 $ 117,979 $ 100,138 $ 94,793
Preferred partnership unit distributions............................. 26,906 26,906 31,737 24,859 -
------------ ---------- ---------- ---------- ------------
Total preferred distributions, prior to EITF Topic D-42.............. 173,102 175,832 149,716 124,997 94,793
Allocations pursuant to EITF Topic D-42......................... 7,120 6,888 14,835 - -
------------ ---------- ---------- ---------- ------------
Total preferred distributions, including EITF Topic D-42............. $ 180,222 $ 182,720 $ 164,551 $ 124,997 $ 94,793
============ ========== ========== ========== ============
Total combined fixed charges and preferred distributions, prior to
EITF Topic D-42...................................................... $ 180,233 $ 186,154 $ 161,935 $ 138,068 $ 107,273
============ ========== ========== ========== ============
Total combined fixed charges and preferred distributions, including
EITF Topic D-42...................................................... $ 187,353 $ 193,042 $ 176,770 $ 138,068 $ 107,273
============ ========== ========== ========== ============
Ratio of earnings to fixed charges.................................. 79.73x 53.18x 44.23x 37.11x 35.40x
============ ========== ========== ========== ============
Ratio of earnings to combined fixed charges and preferred
distributions, prior to EITF Topic D-42........................... 3.15x 2.95x 3.34x 3.51x 4.12x
============ ========== ========== ========== ============
Ratio of earnings to combined fixed charges and preferred
distributions, including EITF Topic D-42.......................... 3.03x 2.84x 3.06x 3.51x 4.12x
============ ========== ========== ========== ============
(a) EBITDA represents earnings prior to interest, taxes, depreciation,
amortization, gains on sale of real estate assets and the impact of the
application of EITF Topic D-42. This supplemental disclosure of EBITDA is
included because financial analysts and other members of the investment
community consider coverage ratios for real estate companies on a
pre-depreciation basis.
Exhibit 12