PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Six Months Ended
June 30,
-----------------------------
2006 2005
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Net income................................... $ 243,078 $ 204,677
Add: Minority interest in income.......... 15,887 19,112
Less: Minority interest in income which do
not have fixed charges.................. (7,402) (9,100)
Less: Equity in earnings of investments... (6,590) (10,529)
Add: Cash distributions from investments.. 10,415 11,496
Less: Impact of discontinued operations... (63) (1,196)
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Adjusted net income.......................... 255,325 214,460
Interest expense.......................... 3,429 3,457
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Total earnings available to cover fixed charges $ 258,754 $ 217,917
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Total fixed charges - interest expense (a)... $ 4,498 $ 4,801
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Cumulative preferred stock dividends......... $ 98,991 $ 82,560
Preferred partnership unit distributions..... 8,249 8,965
Allocations pursuant to EITF Topic D-42...... - 2,778
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Total preferred distributions................ $ 107,240 $ 94,303
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Total combined fixed charges and preferred
stock distributions........................ $ 111,738 $ 99,104
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Ratio of earnings to fixed charges........... 57.53x 45.39x
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Ratio of earnings to combined fixed charges.. 2.32x 2.20x
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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... (6,572) 726 (4,077) 11,613 1,401
----------- -------------- ------------ ------------ -----------
Adjusted net income.......................... 465,540 398,150 355,457 349,739 345,963
Interest expense.......................... 8,216 760 1,121 3,809 3,227
----------- -------------- ------------ ------------ -----------
Total earnings available to cover fixed charges $ 473,756 $ 398,910 $ 356,578 $ 353,548 $ 349,190
=========== ============== ============ ============ ===========
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........... 42.93x 91.14x 50.00x 34.25x 28.58x
=========== ============== ============ ============ ===========
Ratio of earnings to combined fixed charges.. 2.27x 1.96x 1.90x 1.83x 1.98x
=========== ============== ============ ============ ===========
Exhibit 12
PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
SUPPLEMENTAL DISCLOSURE OF RATIO OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION ("EBITDA") TO FIXED CHARGES (A):
For the Six Months Ended
June 30,
---------------------------
2006 2005
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Net Income................................... $ 243,078 $ 204,677
Add - Depreciation and amortization (including
discontinued operations)..................... 98,716 96,287
Less - Depreciation allocated to minority
interests.................................... (628) (2,543)
Add - Depreciation included in equity in
earnings of real estate entities........... 18,720 17,443
Add - Minority interest - preferred ......... 8,249 9,839
Add - Interest expense ...................... 3,429 3,457
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EBITDA available to cover fixed charges (b).. $ 371,564 $ 329,160
============ =============
Total fixed charges - interest expense (a)... $ 4,498 $ 4,801
============ =============
Preferred stock dividends.................... $ 98,991 $ 82,560
Preferred partnership unit distributions..... 8,249 8,965
Allocations pursuant to EITF Topic D-42... - 2,778
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Total preferred distributions................ $ 107,240 $ 94,303
============ =============
Total combined fixed charges and preferred
stock distributions........................ $ 111,738 $ 99,104
============ =============
Ratio of EBITDA to fixed charges............. 82.61x 68.56x
============ =============
Ratio of EBITDA to combined fixed charges and
preferred stock distributions.............. 3.33x 3.32x
============ =============
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 - Depreciation and amortization (including
discontinued operations)..................... 196,485 184,345 188,003 181,648 168,061
Less - Depreciation allocated to minority
interests.................................... (3,403) (6,046) (6,328) (8,087) (7,847)
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) 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