PS BUSINESS PARKS, INC.
Exhibit 12: Statement re: Computation of Ratio of Earnings
to Fixed Charges
Six Months Ended June 30,
--------------------------------------
1999 1998
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Net income............................................ $ 19,697,000 $ 11,376,000
Minority interest..................................... 6,400,000 5,683,000
Interest expense...................................... 1,681,000 1,069,000
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Total earnings available to cover fixed charges.... $ 27,778,000 $ 18,128,000
============= =============
Total fixed charges - interest expense (1)............ $ 2,091,000 $ 1,069,000
============= =============
Total preferred distributions......................... $ 1,076,000 $ -
============= =============
Total combined fixed charges and preferred
distributions......................................... $ 3,167,000 $ 1,069,000
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Ratio of earnings to fixed charges.................... 13.28 16.96
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Ratio of earnings to combined fixed charges and
preferred distributions............................... 8.77 16.96
============= =============
Years Ended December 31,
------------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
Net income......................... $ 29,400,000 $ 3,836,000 $ 519,000 $ 1,192,000 $ 1,245,000
Minority interest.................. 11,208,000 8,566,000 - - -
Interest expense................... 2,361,000 1,000 - - -
------------ ------------ ------------ ------------ ------------
Total earnings available to
cover fixed charges......... $ 42,969,000 $ 12,403,000 $ 519,000 $ 1,192,000 $ 1,245,000
============ ============ ============ ============ ============
Total fixed charges - interest
expense (1)..................... $ 2,629,000 $ 1,000 $ - $ - $ -
============ ============ ============ ============ ============
Ratio of earnings to fixed charges. 16.34 12,403 N/A N/A N/A
============ ============ ============ ============ ============
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(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,
-------------------------------------
1999 1998
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FFO................................................... $ 37,461,000 $ 23,615,000
Interest expense...................................... 1,681,000 1,069,000
Minority interest in income - preferred units......... 214,000 -
Preferred dividends................................... 862,000 -
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Adjusted FFO available to cover fixed charges...... $ 40,218,000 $ 24,684,000
============= =============
Total fixed charges - interest expense (1)............ $ 2,091,000 $ 1,069,000
============= =============
Total preferred distributions......................... $ 1,076,000 $ -
============= =============
Total combined fixed charges and preferred
distributions......................................... $ 3,167,000 $ 1,069,000
============= =============
Ratio of FFO to fixed charges......................... 19.23 23.09
============= =============
Ratio of FFO to combined fixed charges and preferred
distributions......................................... 12.70 23.09
============= =============
Years Ended December 31,
------------------------------------------------------------------------------
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------ ------------
FFO................................ $ 57,430,000 $ 17,597,000 $ 303,000 $ 720,000 $ 757,000
Interest expense................... 2,361,000 1,000 - - -
------------ ------------ ------------ ------------ ------------
Adjusted FFO available to cover
fixed charges................... $ 59,791,000 $ 17,598,000 $ 303,000 $ 720,000 $ 757,000
============ ============ ============ ============ ============
Total fixed charges - interest
expense (1)..................... $ 2,629,000 $ 1,000 $ - $ - $ -
============ ============ ============ ============ ============
Ratio of FFO to fixed charges...... 22.74 17,598 N/A N/A N/A
============ ============ ============ ============ ============
- ---------------
(1) Fixed charges include interest expense plus capitalized interest.
Exhibit 12