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,
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2002 2001
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FFO............................................................. $ 51,341,000 $ 46,380,000
Interest expense................................................ 2,983,000 394,000
Minority interest in income - preferred units................... 8,825,000 6,373,000
Preferred dividends............................................. 7,550,000 3,175,000
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Adjusted FFO available to cover fixed charges................... $ 70,699,000 $ 56,322,000
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Fixed charges (1)............................................... $ 3,271,000 $ 1,292,000
Preferred distributions......................................... 16,375,000 9,548,000
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Combined fixed charges and preferred distributions.............. $ 19,646,000 $ 10,840,000
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Ratio of FFO to fixed charges................................... 21.6 43.59
====================== ====================
Ratio of FFO to combined fixed charges and preferred
distributions.................................................. 3.60 5.20
====================== ====================
Years Ended December 31,
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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.