PUBLIC STORAGE
EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Three Months Ended
March 31,
--------------------------
2009 2008
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Net income................................... $ 153,429 $ 519,941
Less: Income allocated to noncontrolling
interests in subsidiaries which do not
have fixed charges...................... (4,115) (4,227)
Less: Equity in earnings of investments... (22,811) (2,729)
Add: Cash distributions from investments.. 11,819 6,493
Less: Impact of discontinued operations... 283 1,148
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Adjusted net income.......................... 138,605 520,626
Interest expense.......................... 8,128 16,487
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Total earnings available to cover fixed charges $ 146,733 $ 537,113
=========== ============
Total fixed charges - interest expense (a)... $ 8,318 $ 17,235
=========== ============
Cumulative preferred share dividends......... $ 58,108 $ 60,333
Preferred partnership unit distributions (prior
to EITF Topic D-42)....................... 4,017 5,403
Allocations pursuant to EITF Topic D-42...... (78,218) -
----------- ------------
Total preferred distributions................ $ (16,093) $ 65,736
=========== ============
Total combined fixed charges and preferred
share distributions........................ $ (7,775) $ 82,971
=========== ============
Ratio of earnings to fixed charges........... 17.64x 31.16x
=========== ============
Ratio of earnings to fixed charges and
preferred share distributions.............. (b) 6.47x
=========== ============
For the Year Ended December 31,
----------------------------------------------------------------
2008 2007 2006 2005 2004
----------- ----------- ----------- ----------- -----------
(Amounts in thousands)
Net income................................... $ 973,872 $ 487,078 $ 345,909 $ 489,044 $ 416,126
Less: Income allocated to noncontrolling
interests in subsidiaries 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... 5,912 1,101 (3,016) (9,078) (3,324)
----------- ----------- ----------- ----------- -----------
Adjusted net income.......................... 985,180 482,520 332,683 463,034 394,100
Interest expense.......................... 43,944 63,671 33,062 8,216 760
----------- ----------- ----------- ----------- -----------
Total earnings available to cover fixed charges $1,029,124 $ 546,191 $ 365,745 $ 471,250 $ 394,860
=========== =========== =========== =========== ===========
Total fixed charges - interest expense (a)... $ 45,942 $ 68,417 $ 35,778 $ 11,036 $ 4,377
=========== =========== =========== =========== ===========
Cumulative preferred share dividends......... $ 239,721 $ 236,757 $ 214,218 $ 173,017 $ 157,925
Preferred partnership unit distributions (prior
to EITF Topic D-42)....................... 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
----------- ----------- ----------- ----------- -----------
Total preferred distributions................ $ 227,482 $ 258,369 $ 264,766 $ 197,576 $ 199,135
=========== =========== =========== =========== ===========
Total combined fixed charges and preferred
share distributions........................ $ 273,424 $ 326,786 $ 300,544 $ 208,612 $ 203,512
=========== =========== =========== =========== ===========
Ratio of earnings to fixed charges........... 22.40x 7.98x 10.22x 42.70x 90.21x
=========== =========== =========== =========== ===========
Ratio of earnings to fixed charges and
preferred share distributions.............. 3.76x 1.67x 1.22x 2.26x 1.94x
=========== =========== =========== =========== ===========
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest, and includes $18,135,000 in interest expense incurred
by Shurgard Europe for the three months ended March 31, 2008 As described
in Note 3 to our March 31, 2009 condensed 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) Not meaningful as combined fixed charges and preferred share distributions
are negative.
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,
--------------------------
2009 2008
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Net income................................... $ 153,429 $ 519,941
Less: Gain on sale of Shurgard Europe........ - (341,865)
Add - Depreciation and amortization (including
discontinued operations)................... 85,200 122,491
Add - Depreciation included in equity in
earnings of real estate entities........... 17,632 12,172
Add - Interest expense ...................... 8,128 16,487
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EBITDA available to cover fixed charges (b).. $ 264,389 $ 329,226
=========== =============
Total fixed charges - interest expense (a)... $ 8,318 $ 17,235
=========== =============
Preferred share dividends.................... $ 58,108 $ 60,333
Preferred partnership unit distributions (prior
to EITF Topic D-42)........................ 4,017 5,403
----------- -------------
Total preferred distributions (prior to-EITF
Topic D-42) 62,125 65,736
Allocations pursuant to EITF Topic D-42...... (78,218) -
----------- -------------
Total preferred distributions................ $ (16,093) $ 65,736
=========== =============
Total combined fixed charges and preferred
share distributions........................ $ (7,775) $ 82,971
=========== =============
Ratio of EBITDA to fixed charges............. 31.79x 19.10x
=========== =============
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. (c) 3.97x
=========== =============
For the Year Ended December 31,
-------------------------------------------------------------------
2008 2007 2006 2005 2004
------------ ------------ ------------- ----------- -----------
(Amounts in thousands)
Net income................................... $ 973,872 $ 487,078 $ 345,909 $ 489,044 $ 416,126
Less: Gain on sale of Shurgard Europe........ (344,685) - - - -
Add - Depreciation and amortization (including
discontinued operations)................... 414,364 623,067 438,395 196,663 184,518
Add - Depreciation included in equity in
earnings of real estate entities........... 74,918 45,307 38,890 35,425 33,720
Add - Interest expense ...................... 43,944 63,671 33,062 8,216 760
------------ ------------ ------------- ----------- -----------
EBITDA available to cover fixed charges (b).. $ 1,162,413 $ 1,219,123 $ 856,256 $ 729,348 $ 635,124
============ ============ ============= =========== ===========
Total fixed charges - interest expense (a)... $ 45,942 $ 68,417 $ 35,778 $ 11,036 $ 4,377
============ ============ ============= =========== ===========
Preferred share dividends.................... $ 239,721 $ 236,757 $ 214,218 $173,017 $157,925
Preferred partnership unit distributions (prior
to EITF Topic D-42)........................ 21,612 21,612 19,055 16,147 30,423
------------ ------------ ------------- ----------- -----------
Total preferred distributions (prior to-EITF
Topic D-42) 261,333 258,369 233,273 189,164 188,348
Allocations pursuant to EITF Topic D-42...... (33,851) - 31,493 8,412 10,787
------------ ------------ ------------- ----------- -----------
Total preferred distributions................ $ 227,482 $ 258,369 $ 264,766 $ 197,576 $ 199,135
============ ============ ============= =========== ===========
Total combined fixed charges and preferred
share distributions........................ $ 273,424 $ 326,786 $ 300,544 $ 208,612 $ 203,512
============ ============ ============= =========== ===========
Ratio of EBITDA to fixed charges............. 25.30x 17.82x 23.93x 66.09x 145.10x
============ ============ ============= =========== ===========
Ratio of EBITDA to combined fixed charges and
preferred share distributions.............. 4.25x 3.73x 2.85x 3.50x 3.12x
============ ============ ============= =========== ===========
(a) "Total fixed charges - interest expense" includes interest expense plus
capitalized interest, and includes $18,135,000 in interest expense incurred
by Shurgard Europe for the three months ended March 31, 2009 As described
in Note 3 to our March 31, 2009 condensed 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 and
amortization, and gain on sale of an interest in Shurgard Europe. This
supplemental disclosure of EBITDA is included because we believe that the
coverage ratios computed on a pre-depreciation basis and prior to our gain
on sale of an interest in Shurgard Europe 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.
(c) Not meaningful as combined fixed charges and preferred share distributions
are negative.
Exhibit 12