PUBLIC STORAGE, INC.
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
For the Year Ended December 31,
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2007 2006 2005 2004 2003
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(Amounts in thousands)
Net income................................... $ 457,535 $ 314,026 $ 456,393 $ 366,213 $ 336,653
Add: Minority interest in income.......... 29,543 31,883 32,651 49,913 43,703
Less: Minority interest in income which do
not have fixed charges.................. (16,527) (16,014) (15,161) (17,099) (13,610)
Less: Equity in earnings of investments... (12,738) (11,895) (24,883) (22,564) (24,966)
Add: Cash distributions from investments.. 23,606 17,699 23,112 20,961 17,754
Less: Impact of discontinued operations... 8 285 (6,883) 255 (4,478)
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Adjusted net income.......................... 481,427 335,984 465,229 397,679 355,056
Interest expense.......................... 63,671 33,062 8,216 760 1,121
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Total earnings available to cover fixed charges $ 545,098 $ 369,046 $ 473,445 $ 398,439 $ 356,177
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Total fixed charges - interest expense (a)... $ 68,417 $ 35,778 $ 11,036 $ 4,377 $ 7,131
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Cumulative preferred share dividends......... $ 236,757 $ 214,218 $ 173,017 $ 157,925 $ 146,196
Preferred partnership unit distributions..... 21,612 19,055 16,147 30,423 26,906
Allocations pursuant to EITF Topic D-42...... - 31,493 8,412 10,787 7,120
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Total preferred distributions................ $ 258,369 $ 264,766 $ 197,576 $ 199,135 $ 180,222
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Total combined fixed charges and preferred
share distributions........................ $ 326,786 $ 300,544 $ 208,612 $ 203,512 $ 187,353
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Ratio of earnings to fixed charges........... 7.97x 10.31x 42.90x 91.03x 49.95x
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Ratio of earnings to combined fixed charges.. 1.67x 1.23x 2.27x 1.96x 1.90x
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Supplemental disclosure of Ratio of Earnings
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before Interest, Taxes, Depreciation and
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Amortization ("EBITDA") to fixed charges:
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Net Income................................... $ 457,535 $ 314,026 $ 456,393 $ 366,213 $ 336,653
Add - Depreciation and amortization (including
discontinued operations)..................... 622,894 438,218 196,485 184,345 188,003
Less - Depreciation allocated to minority
interests.................................... (14,058) (4,638) (3,403) (6,046) (6,328)
Add - Depreciation included in equity in
earnings of real estate entities........... 45,307 38,890 35,425 33,720 27,753
Add - Minority interest - preferred ......... 21,612 19,055 17,021 32,486 26,906
Add - Interest expense ...................... 63,671 33,062 8,216 760 1,121
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EBITDA available to cover fixed charges (b).. $ 1,196,961 $ 838,613 $ 710,137 $ 611,478 $ 574,108
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Total fixed charges - interest expense (a)... $ 68,417 $ 35,778 $ 11,036 $ 4,377 $ 7,131
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Preferred share dividends.................... $ 236,757 $ 214,218 $ 173,017 $ 157,925 $ 146,196
Preferred partnership unit distributions..... 21,612 19,055 16,147 30,423 26,906
Allocations pursuant to EITF Topic D-42...... - 31,493 8,412 10,787 7,120
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Total preferred distributions................ $ 258,369 $ 264,766 $ 197,576 $ 199,135 $ 180,222
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Total combined fixed charges and preferred
share distributions........................ $ 326,786 $ 300,544 $ 208,612 $ 203,512 $ 187,353
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Ratio of EBITDA to fixed charges............. 17.50x 23.44x 64.35x 139.70x 80.51x
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Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 3.66x 2.79x 3.40x 3.00x 3.06x
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(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 we believe that coverage ratios computed on a
pre-depreciation basis are a useful measure of our liquidity and financial
analysts and other members of the investment community consider coverage
ratios for real estate companies on a pre-depreciation basis. EBITDA should
not be used as an alternative to net income or cash flow from operations in
evaluating our liquidity or operating results.
Exhibit-12