PS BUSINESS PARKS, INC.
Exhibit 12: Statement re: Computation of Ratio of Earnings
to Fixed Charges
Nine Months Ended
September 30,
----------------------------------------
1999 1998
---------------- ----------------
Net income............................................ $ 30,352,000 $ 21,124,000
Minority interest..................................... 10,769,000 8,696,000
Interest expense...................................... 2,658,000 1,736,000
---------------- ----------------
Total earnings available to cover fixed charges.... $ 43,779,000 $ 31,556,000
================ ================
Total fixed charges - interest expense (1)............ $ 3,242,000 $ 1,736,000
================ ================
Total preferred distributions......................... $ 3,370,000 $ -
================ ================
Total combined fixed charges and preferred
distributions......................................... $ 6,612,000 $ 1,736,000
================ ================
Ratio of earnings to fixed charges.................... 13.50 18.18
================ ================
Ratio of earnings to combined fixed charges and
preferred distributions............................... 6.62 18.18
================ ================
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
============== ============== ============== ============== ==============
_______________
(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:
Nine Months Ended
September 30,
----------------------------------------
1999 1998
---------------- ----------------
FFO................................................... $ 56,848,000 $ 40,317,000
Interest expense...................................... 2,658,000 1,736,000
Minority interest in income - preferred units......... 1,236,000 -
Preferred dividends................................... 2,134,000 -
---------------- ----------------
Adjusted FFO available to cover fixed charges...... $ 62,876,000 $ 42,053,000
================ ================
Total fixed charges - interest expense (1)............ $ 3,242,000 $ 1,736,000
================ ================
Total preferred distributions......................... $ 3,370,000 $ -
================ ================
Total combined fixed charges and preferred
distributions......................................... $ 6,612,000 $ 1,736,000
================ ================
Ratio of FFO to fixed charges......................... 19.39 24.22
================ ================
Ratio of FFO to combined fixed charges and preferred
distributions......................................... 9.51 24.22
================ ================
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