PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Three Months Ended
March 31,
---------------------------------
2007 2006
----------------- ---------------
Net income................................... $ 59,778 $ 114,216
Add: Minority interest in income.......... 5,783 7,159
Less: Minority interest in income which do not have fixed
charges................................. (3,934) (3,452)
Less: Equity in earnings of investments... (3,977) (3,466)
Add: Cash distributions from investments.. 4,171 5,776
Less: Impact of discontinued operations... - (154)
----------------- ---------------
Adjusted net income.......................... 61,821 120,079
Interest expense.......................... 16,808 1,557
----------------- ---------------
Total earnings available to cover fixed charges $ 78,629 $ 121,636
================= ===============
Total fixed charges - interest expense (a)... $ 17,549 $ 2,273
================= ===============
Cumulative preferred stock dividends......... $ 58,776 $ 46,615
Preferred partnership unit distributions..... 5,403 3,591
Allocations pursuant to EITF Topic D-42...... - -
----------------- ---------------
Total preferred distributions................ $ 64,179 $ 50,206
================= ===============
Total combined fixed charges and preferred stock distributions
$ 81,728 $ 52,479
================= ===============
Ratio of earnings to fixed charges........... 4.48x 53.51x
================= ===============
Ratio of earnings to fixed charges and preferred stock
distributions.............................. 0.96x 2.32x
================= ===============
For the Year Ended December 31,
----------------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- ------------- ------------- ----------- -------------
(Amounts in thousands)
Net income................................... $ 314,026 $ 456,393 $ 366,213 $ 336,653 $ 318,738
Add: Minority interest in income.......... 31,883 32,651 49,913 43,703 44,087
Less: Minority interest in income which do not
have fixed charges...................... (16,014) (15,161) (17,099) (13,610) (14,307)
Less: Equity in earnings of investments... (11,895) (24,883) (22,564) (24,966) (29,888)
Add: Cash distributions from investments.. 17,699 23,112 20,961 17,754 19,496
Less: Impact of discontinued operations... (1,609) (6,796) 255 (4,478) 10,562
-------------- ------------- ------------- ----------- -------------
Adjusted net income.......................... 334,090 465,316 397,679 355,056 348,688
Interest expense.......................... 33,062 8,216 760 1,121 3,809
-------------- ------------- ------------- ----------- -------------
Total earnings available to cover fixed charges $ 367,152 $ 473,532 $ 398,439 $ 356,177 $ 352,497
============== ============= ============= =========== =============
Total fixed charges - interest expense (a)... $ 35,778 $ 11,036 $ 4,377 $ 7,131 $ 10,322
============== ============= ============= =========== =============
Cumulative preferred stock dividends......... $ 214,218 $ 173,017 $ 157,925 $ 146,196 $ 148,926
Preferred partnership unit distributions..... 19,055 16,147 30,423 26,906 26,906
Allocations pursuant to EITF Topic D-42...... 31,493 8,412 10,787 7,120 6,888
-------------- ------------- ------------- ----------- -------------
Total preferred distributions................ $ 264,766 $ 197,576 $ 199,135 $ 180,222 $ 182,720
============== ============= ============= =========== =============
Total combined fixed charges and preferred
stock distributions..................... $ 300,544 $ 208,612 $ 203,512 $ 187,353 $ 193,042
============== ============= ============= =========== =============
Ratio of earnings to fixed charges........... 10.26x 42.91x 91.03x 49.95x 34.15x
============== ============= ============= =========== =============
Ratio of earnings to fixed charges and preferred stock
distributions.............................. 1.22x 2.27x 1.96x 1.90x 1.83x
============== ============= ============= =========== =============
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 Three Months Ended
March 31,
----------------------------
2007 2006
------------- -------------
Net Income................................... $ 59,778 $ 114,216
Add - Depreciation and amortization (including
discontinued operations)..................... 176,481 50,070
Less - Depreciation allocated to minority interests (3,423) (312)
Add - Depreciation included in equity in earnings of
real estate entities....................... 9,755 9,254
Add - Minority interest - preferred ......... 5,403 3,591
Add - Interest expense ...................... 16,808 1,557
EBITDA available to cover fixed charges (b).. $ 264,802 $ 178,376
Total fixed charges - interest expense (a)... $ 17,549 $ 2,273
Preferred stock dividends.................... 58,776 $ 46,615
Preferred partnership unit distributions..... 5,403 3,591
Allocations pursuant to EITF Topic D-42... - -
Total preferred distributions................ $ 64,179 $ 50,206
Total combined fixed charges and preferred stock
distributions.............................. $ 81,728 $ 52,479
Ratio of EBITDA to fixed charges............. 15.09x 78.48x
Ratio of EBITDA to combined fixed charges and
preferred stock distributions.............. 3.24x 3.40x
For the Year Ended December 31,
-----------------------------------------------------------------------
2006 2005 2004 2003 2002
-------------- ------------- ------------- ----------- -----------
(Amounts in thousands)
Net Income................................... $ 314,026 $ 456,393 $ 366,213 $ 336,653 $ 318,738
Add - Depreciation and amortization (including
discontinued operations)..................... 438,218 196,485 184,345 188,003 181,648
Less - Depreciation allocated to minority interests (4,638) (3,403) (6,046) (6,328) (8,087)
Add - Depreciation included in equity in earnings of
real estate entities....................... 38,890 35,425 33,720 27,753 27,078
Add - Minority interest - preferred ......... 19,055 17,021 32,486 26,906 26,906
Add - Interest expense ...................... 33,062 8,216 760 1,121 3,809
EBITDA available to cover fixed charges (b).. $ 838,613 $ 710,137 $ 611,478 $ 574,108 $ 550,092
Total fixed charges - interest expense (a)... $ 35,778 $ 11,036 $ 4,377 $ 7,131 $ 10,322
Preferred stock dividends.................... $ 214,218 $ 173,017 $ 157,925 $146,196 $148,926
Preferred partnership unit distributions..... 19,055 16,147 30,423 26,906 26,906
Allocations pursuant to EITF Topic D-42... 31,493 8,412 10,787 7,120 6,888
Total preferred distributions................ $ 264,766 $ 197,576 $ 199,135 $ 180,222 $ 182,720
Total combined fixed charges and preferred stock
distributions.............................. $ 300,544 $ 208,612 $ 203,512 $ 187,353 $ 193,042
Ratio of EBITDA to fixed charges............. 23.44x 64.35x 139.70x 80.51x 53.29x
Ratio of EBITDA to combined fixed charges and
preferred stock distributions.............. 2.79x 3.40x 3.00x 3.06x 2.85x
(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 financial analysts and other members of the investment
community consider coverage ratios for real estate companies on a
pre-depreciation basis.
Exhibit 12