PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Six Months Ended
June 30,
-------------------------
2007 2006
------------ -----------
(Amounts in thousands)
Net income................................... $ 136,882 $ 243,078
Add: Minority interest in income.......... 13,307 15,887
Less: Minority interest in income which do
not have fixed charges.................. (7,925) (7,402)
Less: Equity in earnings of investments... (6,759) (6,590)
Add: Cash distributions from investments.. 10,535 10,415
Less: Impact of discontinued operations... (18) (265)
------------ -----------
Adjusted net income.......................... 146,022 255,123
Interest expense.......................... 33,515 3,429
------------ -----------
Total earnings available to cover fixed charges $ 179,537 258,552
============ ===========
Total fixed charges - interest expense (a)... $ 35,229 $ 4,498
============ ===========
Cumulative preferred share dividends......... $ 116,091 $ 98,991
Preferred partnership unit distributions..... 10,806 8,249
Allocations pursuant to EITF Topic D-42...... - -
------------ -----------
Total preferred distributions................ $ 126,897 $ 107,240
============ ===========
Total combined fixed charges and preferred
share distributions........................ $ 162,126 $ 111,738
============ ===========
Ratio of earnings to fixed charges........... 5.10x 57.48x
============ ===========
Ratio of earnings to fixed charges and
preferred share distributions.............. 1.11x 2.31x
============ ===========
For the Year Ended December 31,
----------------------------------------------------------------
2006 2005 2004 2003 2002
----------- ---------- ---------- ---------- ----------
(Amounts in thousands)
Net income................................... $ 314,026 $ 456,393 $ 366,213 $ 336,653 $ 318,738
Add: Minority interest in income.......... 31,883 32,651 49,913 43,703 44,087
Less: Minority interest in income which do
not have fixed charges.................. (16,014) (15,161) (17,099) (13,610) (14,307)
Less: Equity in earnings of investments... (11,895) (24,883) (22,564) (24,966) (29,888)
Add: Cash distributions from investments.. 17,699 23,112 20,961 17,754 19,496
Less: Impact of discontinued operations... (1,580) (6,796) 255 (4,478) 10,562
----------- ---------- ---------- ---------- ----------
Adjusted net income.......................... 334,119 465,316 397,679 355,056 348,688
Interest expense.......................... 33,062 8,216 760 1,121 3,809
----------- ---------- ---------- ---------- ----------
Total earnings available to cover fixed charges $ 367,181 $ 473,532 $ 398,439 $ 356,177 $ 352,497
=========== ========== ========== ========== ==========
Total fixed charges - interest expense (a)... $ 35,778 $ 11,036 $ 4,377 $ 7,131 $ 10,322
=========== ========== ========== ========== ==========
Cumulative preferred share dividends......... $ 214,218 $ 173,017 $ 157,925 $ 146,196 $ 148,926
Preferred partnership unit distributions..... 19,055 16,147 30,423 26,906 26,906
Allocations pursuant to EITF Topic D-42...... 31,493 8,412 10,787 7,120 6,888
----------- ---------- ---------- ---------- ----------
Total preferred distributions................ $ 264,766 $ 197,576 $ 199,135 $ 180,222 $ 182,720
=========== ========== ========== ========== ==========
Total combined fixed charges and preferred
share distributions........................ $ 300,544 $ 208,612 $ 203,512 $ 187,353 $ 193,042
=========== ========== ========== ========== ==========
Ratio of earnings to fixed charges........... 10.26x 42.91x 91.03x 49.95x 34.15x
=========== ========== ========== ========== ==========
Ratio of earnings to fixed charges and
preferred share distributions.............. 1.22x 2.27x 1.96x 1.90x 1.83x
=========== ========== ========== ========== ==========
Exhibit 12
PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
SUPPLEMENTAL DISCLOSURE OF RATIO OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION ("EBITDA") TO FIXED CHARGES (A):
For the Six Months Ended
June 30,
---------------------------
2007 2006
------------ ------------
(Amounts in thousands)
Net Income................................... $ 136,882 $ 243,078
Add - Depreciation and amortization (including
discontinued operations)..................... 344,082 98,716
Less - Depreciation allocated to minority
interests.................................... (6,775) (628)
Add - Depreciation included in equity in
earnings of real estate entities........... 21,034 18,720
Add - Minority interest - preferred ......... 10,806 8,249
Add - Interest expense ...................... 33,515 3,429
------------ ------------
EBITDA available to cover fixed charges (b).. $ 539,544 $ 371,564
============ ============
Total fixed charges - interest expense (a)... $ 35,229 $ 4,498
============ ============
Preferred share dividends.................... $ 116,091 $ 98,991
Preferred partnership unit distributions..... 10,806 8,249
Allocations pursuant to EITF Topic D-42... - -
------------ ------------
Total preferred distributions................ $ 126,897 $ 107,240
============ ============
Total combined fixed charges and preferred
share distributions........................ $ 162,126 $ 111,738
============ ============
Ratio of EBITDA to fixed charges............. 15.32x 82.61x
============ ============
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 3.33x 3.33x
============ ============
For the Year Ended December 31,
--------------------------------------------------------------
2006 2005 2004 2003 2002
----------- ----------- ---------- ---------- ----------
(Amounts in thousands)
Net Income................................... $ 314,026 $ 456,393 $ 366,213 $ 336,653 $ 318,738
Add - Depreciation and amortization (including
discontinued operations)..................... 438,218 196,485 184,345 188,003 181,648
Less - Depreciation allocated to minority
interests.................................... (4,638) (3,403) (6,046) (6,328) (8,087)
Add - Depreciation included in equity in
earnings of real estate entities........... 38,890 35,425 33,720 27,753 27,078
Add - Minority interest - preferred ......... 19,055 17,021 32,486 26,906 26,906
Add - Interest expense ...................... 33,062 8,216 760 1,121 3,809
----------- ----------- ---------- ---------- ----------
EBITDA available to cover fixed charges (b).. $ 838,613 $ 710,137 $ 611,478 $ 574,108 $ 550,092
=========== =========== ========== ========== ===========
Total fixed charges - interest expense (a)... $ 35,778 $ 11,036 $ 4,377 $ 7,131 $ 10,322
=========== =========== ========== ========== ===========
Preferred share dividends.................... $ 214,218 $ 173,017 $ 157,925 $146,196 $148,926
Preferred partnership unit distributions..... 19,055 16,147 30,423 26,906 26,906
Allocations pursuant to EITF Topic D-42... 31,493 8,412 10,787 7,120 6,888
----------- ----------- ---------- ---------- ----------
Total preferred distributions................ $ 264,766 $ 197,576 $ 199,135 $ 180,222 $ 182,720
=========== =========== ========== ========== ===========
Total combined fixed charges and preferred
share distributions........................ $ 300,544 $ 208,612 $ 203,512 $ 187,353 $ 193,042
=========== =========== ========== ========== ===========
Ratio of EBITDA to fixed charges............. 23.44x 64.35x 139.70x 80.51x 53.29x
=========== =========== ========== ========== ===========
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 2.79x 3.40x 3.00x 3.06x 2.85x
=========== =========== ========== ========== ===========
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest.
(b) EBITDA represents earnings prior to interest, taxes, depreciation,
amortization, gains on sale of real estate assets and the impact of the
application of EITF Topic D-42. This supplemental disclosure of EBITDA is
included because financial analysts and other members of the investment
community consider coverage ratios for real estate companies on a
pre-depreciation basis.
Exhibit 12