PS BUSINESS PARKS, INC.
EXHIBIT 12
STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Three Months Ended
March 31,
----------------------------------------
2002 2001
---------------- ----------------
Net income...................................................... $ 16,702,000 $ 11,465,000
Minority interest............................................... 8,844,000 6,423,000
Interest expense................................................ 1,551,000 237,000
---------------- ----------------
Earnings available to cover fixed charges....................... $ 27,097,000 $ 18,125,000
================ ================
Fixed charges (1)............................................... $ 1,695,000 $ 649,000
Preferred distributions......................................... 8,029,000 4,459,000
---------------- ----------------
Combined fixed charges and preferred distributions.............. $ 9,724,000 $ 5,108,000
================ ================
Ratio of earnings to fixed charges.............................. 15.99 27.93
================ ================
Ratio of earnings to combined fixed charges and preferred
distributions.................................................. 2.79 3.55
================ ================
Years Ended December 31,
------------------------------------------------------------------------------
2001 2000 1999 1998 1997
------------ ------------ ------------ ------------ ------------
Net income......................... $ 49,870,000 $ 51,181,000 $ 41,255,000 $ 29,400,000 $ 3,836,000
Minority interest.................. 27,489,000 26,741,000 16,049,000 11,208,000 8,566,000
Interest expense................... 1,715,000 1,481,000 3,153,000 2,361,000 1,000
------------ ------------ ------------ ------------ ------------
Earnings available to cover fixed
charges......................... $ 79,074,000 $ 79,403,000 $ 60,457,000 $ 42,969,000 $ 12,403,000
============ ============ ============ ============ ============
Fixed charges (1).................. $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000
Preferred distributions............ 22,961,000 17,273,000 7,562,000 - -
------------ ------------ ------------ ------------ ------------
Combined fixed charges and preferred
distributions................... $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000
============ ============ ============ ============ ============
Ratio of earnings to fixed charges. 28.18 27.42 14.60 16.34 12,403
============ ============ ============ ============ ============
Ratio of earnings to combined fixed
charges and preferred
distributions................... 3.07 3.94 5.17 16.34 12,403
============ ============ ============ ============ ============
(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:
Three Months Ended
March 31,
----------------------------------------
2002 2001
---------------- ----------------
FFO............................................................. $ 25,164,000 $ 22,690,000
Interest expense................................................ 1,551,000 237,000
Minority interest in income - preferred units................... 4,412,000 3,187,000
Preferred dividends............................................. 3,617,000 1,272,000
---------------- ----------------
Adjusted FFO available to cover fixed charges................... $ 34,744,000 $ 27,386,000
================ ================
Fixed charges (1)............................................... $ 1,695,000 $ 649,000
Preferred distributions......................................... 8,029,000 4,459,000
---------------- ----------------
Combined fixed charges and preferred distributions.............. $ 9,724,000 $ 5,108,000
================ ================
Ratio of FFO to fixed charges................................... 20.50 42.20
================ ================
Ratio of FFO to combined fixed charges and preferred
distributions.................................................. 3.57 5.36
================ ================
Years Ended December 31,
-------------------------------------------------------------------------------
2001 2000 1999 1998 1997
------------- ------------- ------------- ------------- -------------
FFO................................ $ 93,568,000 $ 85,977,000 $ 76,353,000 $ 57,430,000 $ 17,597,000
Interest expense................... 1,715,000 1,481,000 3,153,000 2,361,000 1,000
Minority interest in income -
preferred units................. 14,107,000 12,185,000 4,156,000 - -
Preferred dividends................ 8,854,000 5,088,000 3,406,000 - -
------------- ------------- ------------- ------------- -------------
Adjusted FFO available to cover
fixed charges................... $ 118,244,000 $ 104,731,000 $ 87,068,000 $ 59,791,000 $ 17,598,000
============= ============= ============= ============= =============
Fixed charges (1).................. $ 2,806,000 $ 2,896,000 $ 4,142,000 $ 2,629,000 $ 1,000
Preferred distributions............ 22,961,000 17,273,000 7,562,000 - -
------------- ------------- ------------- ------------- -------------
Combined fixed charges and preferred
distributions................... $ 25,767,000 $ 20,169,000 $ 11,704,000 $ 2,629,000 $ 1,000
============= ============= ============= ============= =============
Ratio of FFO to fixed charges...... 42.14 36.16 21.02 22.74 17,598
============= ============= ============= ============= =============
Ratio of FFO to combined fixed
charges and preferred
distributions................... 4.59 5.19 7.44 22.74 17,598
============= ============= ============= ============= =============
(1) Fixed charges include interest expense plus capitalized interest.