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 ------------ ----------- ------------ ------------ ----------- (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 ------------ ----------- ------------ ------------ ----------- Total earnings available to cover fixed charges $ 473,951 $ 399,085 $ 356,735 $ 353,743 $ 349,421 ============ =========== ============ ============ =========== Total fixed charges - interest expense (a)... $ 11,036 $ 4,377 $ 7,131 $ 10,322 $ 12,219 ============ =========== ============ ============ =========== 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 ------------ ----------- ------------ ------------ ----------- 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 earnings to fixed charges........... 42.95x 91.18x 50.03x 34.27x 28.60x ============ =========== ============ ============ =========== Ratio of earnings to combined fixed charges.. 2.27x 1.96x 1.90x 1.83x 1.98x ============ =========== ============ ============ =========== 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 ============ =========== ============ ============ =========== (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