PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
Exhibit - 12
For the Year Ended December 31,
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2008 2007 2006 2005 2004
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(Amounts in thousands)
Net income................................... $ 935,176 $ 457,535 $ 314,026 $ 456,393 $ 366,213
Add: Minority interest in income.......... 38,696 29,543 31,883 32,651 49,913
Less: Minority interest in income which do
not have fixed charges.................. (17,668) (16,527) (16,014) (15,161) (17,099)
Less: Equity in earnings of investments... (20,391) (12,738) (11,895) (24,883) (22,564)
Add: Cash distributions from investments.. 43,455 23,606 17,699 23,112 20,961
Less: Impact of discontinued operations... 1,266 252 534 (6,685) 4
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Adjusted net income.......................... 980,534 481,671 336,233 465,427 397,428
Interest expense.......................... 43,944 63,671 33,062 8,216 760
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Total earnings available to cover fixed charges $ 1,024,478 $ 545,342 $ 369,295 $ 473,643 $ 398,188
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Total fixed charges - interest expense (a)... $ 45,942 $ 68,417 $ 35,778 $ 11,036 $ 4,377
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Cumulative preferred share dividends......... $ 239,721 $ 236,757 $ 214,218 $ 173,017 $ 157,925
Preferred partnership unit distributions..... 21,612 21,612 19,055 16,147 30,423
Allocations pursuant to EITF Topic D-42...... (33,851) - 31,493 8,412 10,787
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Total preferred distributions................ $ 227,482 $ 258,369 $ 264,766 $ 197,576 $ 199,135
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Total combined fixed charges and preferred
share distributions........................ $ 273,424 $ 326,786 $ 300,544 $ 208,612 $ 203,512
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Ratio of earnings to fixed charges........... 22.30x 7.97x 10.32x 42.92x 90.97x
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Ratio of earnings to combined fixed charges and
preferred share distributions.............. 3.75x 1.67x 1.23x 2.27x 1.96x
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Supplemental disclosure of Ratio of Earnings before Interest, Taxes,
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Depreciation and Amortization ("EBITDA") to fixed charges:
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Net income................................... $ 935,176 $ 457,535 $ 314,026 $ 456,393 $ 366,213
Less - Gain on sale of Shurgard Europe....... (344,685) - - - -
Add - Depreciation and amortization (including
discontinued operations)..................... 414,201 622,894 438,218 196,485 184,345
Less - Depreciation allocated to minority
interests.................................... (4,820) (14,058) (4,638) (3,403) (6,046)
Add - Depreciation included in equity in
earnings of real estate entities........... 74,918 45,307 38,890 35,425 33,720
Add - Minority interest - preferred ......... 21,612 21,612 19,055 17,021 32,486
Add - Interest expense ...................... 43,944 63,671 33,062 8,216 760
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EBITDA available to cover fixed charges (b).. $ 1,140,346 $ 1,196,961 $ 838,613 $ 710,137 $ 611,478
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Total fixed charges - interest expense (a)... $ 45,942 $ 68,417 $ 35,778 $ 11,036 $ 4,377
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Preferred share dividends.................... $ 239,721 $ 236,757 $ 214,218 $ 173,017 $ 157,925
Preferred partnership unit distributions..... 21,612 21,612 19,055 16,147 30,423
Allocations pursuant to EITF Topic D-42...... (33,851) - 31,493 8,412 10,787
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Total preferred distributions................ $ 227,482 $ 258,369 $ 264,766 $ 197,576 $ 199,135
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Total combined fixed charges and preferred
share distributions........................ $ 273,424 $ 326,786 $ 300,544 $ 208,612 $ 203,512
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Ratio of EBITDA to fixed charges............. 24.82x 17.50x 23.44x 64.35x 139.70x
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Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 4.17x 3.66x 2.79x 3.40x 3.00x
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Ehibit 12
PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF
RATIO OF EARNINGS TO FIXED CHARGES
Exhibit - 12
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest and includes $13,217,000 in interest expense incurred
by Shurgard Europe for the period from August 23, 2006 through December 31,
2006, $24,819,000 in interest expense for the year ended December 31, 2007,
and $7,737,000 for the year ended December 31, 2008. As described in Note 3
to the Company's December 31, 2008 consolidated financial statements,
Shurgard Europe was deconsolidated as of March 31, 2008. No further
interest expense for Shurgard Europe is reflected in our financial
statements after March 31, 2008.
(b) EBITDA represents earnings prior to interest, taxes, depreciation,
amortization, and gain on sale of an interest in Shurgard Europe. This
supplemental disclosure of EBITDA is included because we believe that
coverage ratios computed on this 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 this 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