PS BUSINESS PARKS, INC.
Exhibit 12:
Statement re: COMPUTATION of Ratio of Earnings to Fixed Charges
Nine Months Ended
September 30,
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2002 2001
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Net income...................................................... $ 44,018,000 $ 37,144,000
Minority interest............................................... 24,256,000 19,743,000
Interest expense................................................ 4,098,000 932,000
Equity income from sale of joint venture properties............. (265,000) -
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Earnings available to cover fixed charges....................... $ 72,107,000 $ 57,819,000
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Fixed charges (1)............................................... $ 4,386,000 $ 1,933,000
Preferred distributions......................................... 24,720,000 15,710,000
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Combined fixed charges and preferred distributions.............. $ 29,106,000 $ 17,643,000
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Ratio of earnings to fixed charges.............................. 16.44 29.91
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Ratio of earnings to combined fixed charges and preferred
distributions.................................................. 2.48 3.28
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Years Ended December 31,
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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:
Nine Months Ended
September 30,
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2002 2001
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FFO............................................................. $ 77,405,000 $ 70,049,000
Interest expense................................................ 4,098,000 932,000
Minority interest in income - preferred units................... 13,237,000 9,696,000
Preferred dividends............................................. 11,483,000 6,014,000
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Adjusted FFO available to cover fixed charges................... $ 106,223,000 $ 86,691,000
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Fixed charges (1)............................................... $ 4,386,000 $ 1,933,000
Preferred distributions......................................... 24,720,000 15,710,000
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Combined fixed charges and preferred distributions.............. $ 29,106,000 $ 17,643,000
================= =================
Ratio of FFO to fixed charges................................... 24.22 44.85
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Ratio of FFO to combined fixed charges and preferred
distributions.................................................. 3.65 4.91
================= =================
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.