PS BUSINESS PARKS, INC.
EXHIBIT 12:
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months Ended
June 30,
-------------------------------------------
2000 1999
-------------------- ----------------------
Net income...................................................... $ 22,255,000 $ 19,697,000
Minority interest............................................... 12,031,000 6,400,000
Interest expense................................................ 744,000 1,681,000
-------------------- ----------------------
Earnings available to cover fixed charges....................... $ 35,030,000 $ 27,778,000
==================== ======================
Fixed charges (1)............................................... 1,432,000 2,091,000
Preferred distributions......................................... 8,385,000 1,076,000
-------------------- ----------------------
Combined fixed charges and preferred distributions.............. $ 9,817,000 $ 3,167,000
==================== ======================
Ratio of earnings to fixed charges.............................. 24.46 13.28
==================== ======================
Ratio of earnings to combined fixed charges and preferred
distributions................................................ 3.57 8.77
==================== ======================
Years Ended December 31,
--------------------------------------------------------------------------------
1999 1998 1997 1996 1995
--------------- ---------------- --------------- ---------------- --------------
Net income.......................... $ 41,255,000 $ 29,400,000 $ 3,836,000 $ 519,000 $ 1,192,000
Minority interest................... 16,049,000 11,208,000 8,566,000 - -
Interest expense.................... 3,153,000 2,361,000 1,000 - -
--------------- ---------------- --------------- ---------------- --------------
Earnings available to cover fixed
charges.......................... $60,457,000 $ 42,969,000 $ 12,403,000 $ 519,000 $ 1,192,000
=============== ================ =============== ================ ==============
Fixed charges (1)................... $ 4,142,000 $ 2,629,000 $ 1,000 $ - $ -
Preferred distributions............. 7,562,000 - - - -
--------------- ---------------- --------------- ---------------- --------------
Combined fixed charges and preferred
distributions.................... $ 11,704,000 $ 2,629,000 $ 1,000 $ - $ -
=============== ================ =============== ================ ==============
Ratio of earnings to fixed charges.. 14.60 16.34 12,403 N/A N/A
=============== ================ =============== ================ ==============
Ratio of earnings to combined fixed
charges and preferred
distributions.................... 5.17 16.34 12,403 N/A N/A
=============== ================ =============== ================ ==============
(1) Fixed charges include interest expense plus capitalized interest.
Exhibit 12
PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Supplemental disclosure of Ratio of Funds from Operations ("FFO") to fixed
charges:
Six Months Ended
June 30,
-------------------------------------------
2000 1999
------------------- ---------------------
FFO............................................................. $ 41,854,000 $ 37,461,000
Interest expense................................................ 744,000 1,681,000
Minority interest in income - preferred units................... 5,841,000 214,000
Preferred dividends............................................. 2,544,000 862,000
------------------- ---------------------
Adjusted FFO available to cover fixed charges................... $ 50,983,000 $ 40,218,000
=================== =====================
Fixed charges (1)............................................... 1,432,000 2,091,000
Preferred distributions......................................... 8,385,000 1,076,000
------------------- ---------------------
Combined fixed charges and preferred distributions.............. $ 9,817,000 $ 3,167,000
=================== =====================
Ratio of FFO to fixed charges................................... 35.60 19.23
=================== =====================
Ratio of FFO to combined fixed charges and preferred
distributions................................................ 5.19 12.70
=================== =====================
Years Ended December 31,
--------------------------------------------------------------------------------
1999 1998 1997 1996 1995
--------------- ---------------- --------------- ---------------- --------------
FFO................................. $ 76,353,000 $ 57,430,000 $ 17,597,000 $ 303,000 $ 720,000
Interest expense.................... 3,153,000 2,361,000 1,000 - -
Minority interest in income -
preferred units.................. 4,156,000 - - - -
Preferred dividends................. 3,406,000 - - - -
--------------- ---------------- --------------- ---------------- --------------
Adjusted FFO available to cover
fixed charges.................... $ 87,068,000 $ 59,791,000 $ 17,598,000 $ 303,000 $ 720,000
=============== ================ =============== ================ ==============
Fixed charges (1)................... $ 4,142,000 $ 2,629,000 $ 1,000 $ - $ -
Preferred distributions............. 7,562,000 - - - -
Combined fixed charges and preferred
distributions.................... $ 11,704,000 $ 2,629,000 $ 1,000 $ - $ -
=============== ================ =============== ================ ==============
Ratio of FFO to fixed charges....... 21.02 22.74 17,598 N/A N/A
=============== ================ =============== ================ ==============
Ratio of FFO to combined fixed
charges and preferred
distributions.................... 7.44 22.74 17,598 N/A N/A
=============== ================ =============== ================ ==============
(1) Fixed charges include interest expense plus capitalized interest.
Exhibit 12