PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Three Months Ended
March 31,
---------------------------
2008 2007
------------ ------------
Net income................................... $ 512,342 $ 59,778
Add: Minority interest in income.......... 7,599 5,783
Less: Minority interest in income which do
not have fixed charges.................. (4,227) (3,934)
Less: Equity in earnings of investments... (2,729) (3,977)
Add: Cash distributions from investments.. 6,493 4,171
Less: Impact of discontinued operations... 116 1,226
------------ ------------
Adjusted net income.......................... 519,594 63,047
Interest expense.......................... 16,487 16,808
------------ ------------
Total earnings available to cover fixed charges $ 536,081 $ 79,855
============ ============
Total fixed charges - interest expense (a)... $ 17,235 $ 17,549
============ ============
Cumulative preferred share dividends......... $ 60,333 $ 58,776
Preferred partnership unit distributions..... 5,403 5,403
Allocations pursuant to EITF Topic D-42...... - -
------------ ------------
Total preferred distributions................ $ 65,736 $ 64,179
============ ============
Total combined fixed charges and preferred
share distributions........................ $ 82,971 $ 81,728
============ ============
Ratio of earnings to fixed charges........... 31.10x 4.55x
============ ============
Ratio of earnings to fixed charges and
preferred share distributions.............. 6.46x 0.98x
============ ============
For the Year Ended December 31,
--------------------------------------------------------------------------
2007 2006 2005 2004 2003
------------ ------------- ------------ ----------- -----------
(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... (269) 36 (7,080) 506 (4,569)
------------ ------------- ------------ ----------- -----------
Adjusted net income.......................... 481,150 335,735 465,032 397,930 354,965
Interest expense.......................... 63,671 33,062 8,216 760 1,121
------------ ------------- ------------ ----------- -----------
Total earnings available to cover fixed charges $ 544,821 $ 368,797 $ 473,248 $ 398,690 $ 356,086
============ ============= ============ =========== ===========
Total fixed charges - interest expense (a)... $ 68,417 $ 35,778 $ 11,036 $ 4,377 $ 7,131
============ ============= ============ =========== ===========
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
------------ ------------- ------------ ----------- -----------
Total preferred distributions................ $ 258,369 $ 264,766 $ 197,576 $ 199,135 $ 180,222
============ ============= ============ =========== ===========
Total combined fixed charges and preferred
share distributions........................ $ 326,786 $ 300,544 $ 208,612 $ 203,512 $ 187,353
============ ============= ============ =========== ===========
Ratio of earnings to fixed charges........... 7.96x 10.31x 42.88x 91.09x 49.93x
============ ============= ============ =========== ===========
Ratio of earnings to fixed charges and
preferred share distributions.............. 1.67x 1.23x 2.27x 1.96x 1.90x
============ ============= ============ =========== ===========
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest, and includes $7,737,000 and $5,572,000 in interest
expense incurred by Shurgard Europe for the three months ended March 31,
2008 and 2007, respectively. As described in Note 3 to our March 31, 2008
financial statements, Shurgard Europe was deconsolidated as of March 31,
2008. No further interest expense for Shurgard Europe will be reflected in
our financial statements after March 31, 2008.
Exhibit 12
SUPPLEMENTAL DISCLOSURE OF RATIO OF EARNINGS BEFORE INTEREST, TAXES,
DEPRECIATION AND AMORTIZATION ("EBITDA") TO FIXED CHARGES (A):
For the Three Months Ended
March 31,
---------------------------
2008 2007
------------ ------------
Net income................................... $ 512,342 $ 59,778
Less: (Gain)/Loss on sale of real estate,
impairment of real estate assets and real
estate investments......................... (341,865) -
Add - Depreciation and amortization (including
discontinued operations)................... 122,491 176,481
Less - Depreciation allocated to minority (3,968) (3,423)
interests....................................
Add - Depreciation included in equity in
earnings of real estate entities........... 12,172 9,755
Add - Minority interest - preferred ......... 5,403 5,403
Add - Interest expense ...................... 16,487 16,808
------------ ------------
EBITDA available to cover fixed charges (b).. $ 323,062 $ 264,802
============ ============
Total fixed charges - interest expense (a)... $17,235 $ 17,549
============ ============
Preferred share dividends.................... $ 60,333 $ 58,776
Preferred partnership unit distributions..... 5,403 5,403
Allocations pursuant to EITF Topic D-42...... - -
------------ ------------
Total preferred distributions................ $ 65,736 $ 64,179
============ ============
Total combined fixed charges and preferred
share distributions........................ $ 82,971 $ 81,728
============ ============
Ratio of EBITDA to fixed charges............. 18.74x 15.09x
============ ============
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 3.89x 3.24x
============ ============
For the Year Ended December 31,
---------------------------------------------------------------------------
2007 2006 2005 2004 2003
------------ ------------ ---------- ------------ ------------
(Amounts in thousands)
Net income................................... $ 457,535 $ 314,026 $ 456,393 $ 366,213 $ 336,653
Less: (Gain)/Loss on sale of real estate,
impairment of real estate assets and real
estate investments ........................ - - - - -
Add - Depreciation and amortization (including
discontinued operations)................... 622,894 438,218 196,485 184,345 188,003
Less - Depreciation allocated to minority (14,058) (4,638) (3,403) (6,046) (6,328)
interests....................................
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
------------ ------------ ---------- ------------ ------------
EBITDA available to cover fixed charges (b).. $ 1,196,961 $ 838,613 $ 710,137 $ 611,478 $ 574,108
============ ============ ========== ============ ============
Total fixed charges - interest expense (a)... $ 68,417 $ 35,778 $ 11,036 $ 4,377 $ 7,131
============ ============ ========== ============ ============
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
------------ ------------ ---------- ------------ ------------
Total preferred distributions................ $ 258,369 $ 264,766 $ 197,576 $ 199,135 $ 180,222
============ ============ ========== ============ ============
Total combined fixed charges and preferred
share distributions........................ $ 326,786 $ 300,544 $ 208,612 $ 203,512 $ 187,353
============ ============ ========== ============ ============
Ratio of EBITDA to fixed charges............. 17.50x 23.44x 64.35x 139.70x 80.51x
============ ============ ========== ============ ============
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 3.66x 2.79x 3.40x 3.00x 3.06x
============ ============ ========== ============ ============
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest, and includes $7,737,000 and $5,572,000 in interest
expense incurred by Shurgard Europe for the three months ended March 31,
2008 and 2007, respectively. As described in Note 3 to our March 31, 2008
financial statements, Shurgard Europe was deconsolidated as of March 31,
2008. No further interest expense for Shurgard Europe will be reflected in
our financial statements after March 31, 2008.
(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 the coverage ratios computed on a
pre-depreciation basis are a meaningful 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, cash flow from
operations, or our ratio of Earnings to Fixed Charges in evaluating our
liquidity or operating results.
Exhibit 12