PS BUSINESS PARKS, INC. EXHIBIT 12: STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Six Months Ended June 30, ----------------------------------------- 2001 2000 -------------------- ------------------ Net income...................................................... $ 24,295,000 $ 22,255,000 Minority interest............................................... 13,152,000 12,031,000 Interest expense................................................ 394,000 744,000 -------------------- ------------------ Earnings available to cover fixed charges....................... $ 37,841,000 $ 35,030,000 ==================== ================== Fixed charges (1)............................................... $ 1,292,000 $ 1,432,000 Preferred distributions......................................... 9,548,000 8,385,000 -------------------- ------------------ Combined fixed charges and preferred distributions.............. $ 10,840,000 $ 9,817,000 ==================== ================== Ratio of earnings to fixed charges.............................. 29.29 24.46 ==================== ================== Ratio of earnings to combined fixed charges and preferred distributions.................................................. 3.49 3.57 ==================== ================== Years Ended December 31, -------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ---------------- --------------- --------------- ---------------- -------------- Net income......................... $ 51,181,000 $ 41,255,000 $ 29,400,000 $ 3,836,000 $ 519,000 Minority interest.................. 26,741,000 16,049,000 11,208,000 8,566,000 - Interest expense................... 1,481,000 3,153,000 2,361,000 1,000 - ---------------- --------------- --------------- ---------------- -------------- Earnings available to cover fixed charges......................... $79,403,000 $ 60,457,000 $ 42,969,000 $ 12,403,000 $ 519,000 ================ =============== =============== ================ ============== Fixed charges (1).................. $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000 $ - Preferred distributions............ 17,273,000 7,562,000 - - - ---------------- --------------- --------------- ---------------- -------------- Combined fixed charges and preferred distributions................... $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000 $ - ================ =============== =============== ================ ============== Ratio of earnings to fixed charges. 27.42 14.60 16.34 12,403 N/A ================ =============== =============== ================ ============== Ratio of earnings to combined fixed charges and preferred distributions................... 3.94 5.17 16.34 12,403 N/A ================ =============== =============== ================ ============== (1) Fixed charges include interest expense plus capitalized interest. 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, ----------------------------------------- 2001 2000 -------------------- ------------------ FFO............................................................. $ 46,380,000 $ 41,854,000 Interest expense................................................ 394,000 744,000 Minority interest in income - preferred units................... 6,373,000 5,841,000 Preferred dividends............................................. 3,175,000 2,544,000 -------------------- ------------------ Adjusted FFO available to cover fixed charges................... $ 56,322,000 $ 50,983,000 ==================== ================== Fixed charges (1)............................................... $ 1,292,000 $ 1,432,000 Preferred distributions......................................... 9,548,000 8,385,000 -------------------- ------------------ Combined fixed charges and preferred distributions.............. $ 10,840,000 $ 9,817,000 ==================== ================== Ratio of FFO to fixed charges................................... 43.59 35.60 ==================== ================== Ratio of FFO to combined fixed charges and preferred distributions.................................................. 5.20 5.19 ==================== ================== Years Ended December 31, -------------------------------------------------------------------------------- 2000 1999 1998 1997 1996 ---------------- --------------- --------------- ---------------- -------------- FFO................................ $ 85,977,000 $ 76,353,000 $ 57,430,000 $ 17,597,000 $ 303,000 Interest expense................... 1,481,000 3,153,000 2,361,000 1,000 - Minority interest in income - preferred units................. 12,185,000 4,156,000 - - - Preferred dividends................ 5,088,000 3,406,000 - - - ---------------- --------------- --------------- ---------------- -------------- Adjusted FFO available to cover fixed charges................... $ 104,731,000 $ 87,068,000 $ 59,791,000 $ 17,598,000 $ 303,000 ================ =============== =============== ================ ============== Fixed charges (1).................. $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000 $ - Preferred distributions............ 17,273,000 7,562,000 - - - ---------------- --------------- --------------- ---------------- -------------- Combined fixed charges and preferred distributions................... $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000 $ - ================ =============== =============== ================ ============== Ratio of FFO to fixed charges...... 36.16 21.02 22.74 17,598 N/A ================ =============== =============== ================ ============== Ratio of FFO to combined fixed charges and preferred distributions................... 5.19 7.44 22.74 17,598 N/A ================ =============== =============== ================ ============== (1) Fixed charges include interest expense plus capitalized interest.