PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
2005 2004 2003 2002 2001
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(Amounts in thousands)
Net income................................... $ 456,393 $ 366,213 $ 336,653 $ 318,738 $ 324,208
Add: Minority interest in income.......... 32,651 49,913 43,703 44,087 46,015
Less: Minority interest in income which do
not have fixed charges.................. (15,161) (17,099) (13,610) (14,307) (11,243)
Less: Equity in earnings of investments... (24,883) (22,564) (24,966) (29,888) (38,542)
Add: Cash distributions from investments.. 23,112 20,961 17,754 19,496 24,124
Less: Impact of discontinued operations... (6,377) 901 (3,920) 11,808 1,632
------------ ----------- ------------ ------------ -----------
Adjusted net income.......................... 465,735 398,325 355,614 349,934 346,194
Interest expense.......................... 8,216 760 1,121 3,809 3,227
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Total earnings available to cover fixed charges $ 473,951 $ 399,085 $ 356,735 $ 353,743 $ 349,421
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Total fixed charges - interest expense (a)... $ 11,036 $ 4,377 $ 7,131 $ 10,322 $ 12,219
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Cumulative preferred stock dividends......... $ 173,017 $ 157,925 $ 146,196 $ 148,926 $ 117,979
Preferred partnership unit distributions..... 16,147 30,423 26,906 26,906 31,737
Allocations pursuant to EITF Topic D-42...... 8,412 10,787 7,120 6,888 14,835
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Total preferred distributions................ $ 197,576 $ 199,135 $ 180,222 $ 182,720 $ 164,551
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Total combined fixed charges and preferred
stock distributions........................ $ 208,612 $ 203,512 $ 187,353 $ 193,042 $ 176,770
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Ratio of earnings to fixed charges........... 42.95x 91.18x 50.03x 34.27x 28.60x
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Ratio of earnings to combined fixed charges.. 2.27x 1.96x 1.90x 1.83x 1.98x
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Supplemental disclosure of Ratio of Earnings before
- ---------------------------------------------------
Interest, Taxes, Depreciation and Amortization
- ----------------------------------------------
("EBITDA") to fixed charges:
- ----------------------------
Net Income................................... $ 456,393 $ 366,213 $ 336,653 $ 318,738 $ 324,208
Add - Depreciation and amortization (including
discontinued operations)..................... 196,485 184,345 188,003 181,648 168,061
Less - Depreciation allocated to minority (3,403) (6,046) (6,328) (8,087) (7,847)
interests....................................
Add - Depreciation included in equity in
earnings of real estate entities........... 35,425 33,720 27,753 27,078 25,096
Add - Minority interest - preferred ......... 17,021 32,486 26,906 26,906 31,737
Add - Interest expense ...................... 8,216 760 1,121 3,809 3,227
------------ ----------- ------------ ------------ -----------
EBITDA available to cover fixed charges (b).. $ 710,137 $ 611,478 $ 574,108 $ 550,092 $ 544,482
============ =========== ============ ============ ===========
Total fixed charges - interest expense (a)... $ 11,036 $ 4,377 $ 7,131 $ 10,322 $ 12,219
============ =========== ============ ============ ===========
Preferred stock dividends.................... $ 173,017 $ 157,925 $146,196 $148,926 $ 117,979
Preferred partnership unit distributions..... 16,147 30,423 26,906 26,906 31,737
Allocations pursuant to EITF Topic D-42... 8,412 10,787 7,120 6,888 14,835
------------ ----------- ------------ ------------ -----------
Total preferred distributions................ $ 197,576 $ 199,135 $ 180,222 $ 182,720 $ 164,551
============ =========== ============ ============ ===========
Total combined fixed charges and preferred
stock distributions........................ $ 208,612 $ 203,512 $ 187,353 $ 193,042 $ 176,770
============ =========== ============ ============ ===========
Ratio of EBITDA to fixed charges............. 64.35x 139.70x 80.51x 53.29x 44.56x
============ =========== ============ ============ ===========
Ratio of EBITDA to combined fixed charges and
preferred stock distributions.............. 3.40x 3.00x 3.06x 2.85x 3.08x
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(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest.
(b) 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 we believe that coverage ratios computed on a
pre-depreciation basis are a useful measure of our liquidity and financial
analysts and other members of the investment community consider coverage
ratios for real estate companies on a pre-depreciation basis. EBITDA should
not be used as an alternative to net income or cash flow from operations in
evaluating our liquidity or operating results.
Exhibit 12