EX-12 3 ps3q08_ex12.txt EXHIBIT 12 PUBLIC STORAGE EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Nine Months Ended September 30, -------------------------- 2008 2007 ----------- ------------ (Amounts in thousands) Net income................................... $ 783,486 $ 289,648 Add: Minority interest in income.......... 28,352 21,611 Less: Minority interest in income which do not have fixed charges.................. (13,326) (12,069) Less: Equity in earnings of investments... (13,679) (10,183) Add: Cash distributions from investments.. 31,472 17,185 Less: Impact of discontinued operations... 1,132 3,238 ----------- ------------ Adjusted net income.......................... 817,437 309,430 Interest expense.......................... 35,187 48,772 ----------- ------------ Total earnings available to cover fixed charges $ 852,624 $ 358,202 =========== ============ Total fixed charges - interest expense (a)... $ 36,817 $ 51,783 =========== ============ Cumulative preferred share dividends......... $ 180,999 $ 176,424 Preferred partnership unit distributions..... 16,209 16,209 Allocations pursuant to EITF Topic D-42...... - - ----------- ------------ Total preferred distributions................ $ 197,208 $ 192,633 =========== ============ Total combined fixed charges and preferred share distributions........................ $ 234,025 $ 244,416 =========== ============ Ratio of earnings to fixed charges........... 23.16x 6.92x =========== ============ Ratio of earnings to fixed charges and preferred share distributions.............. 3.64x 1.47x =========== ============
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 $18,135,000 in interest expense incurred by Shurgard Europe for the nine months ended September 30, 2007, and $7,737,000 for the nine months ended September 30, 2008. As described in Note 3 to our September 30, 2008 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. 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 Nine Months Ended September 30, --------------------------- 2008 2007 ------------ ------------- (Amounts in thousands) Net income................................... $ 783,486 $ 289,648 Less: Gain on sale of Shurgard Europe........ (342,181) - Add - Depreciation and amortization (including discontinued operations)................... 309,911 492,030 Less - Depreciation allocated to minority interests.................................... (4,647) (10,166) Add - Depreciation included in equity in earnings of real estate entities........... 56,191 32,553 Add - Minority interest - preferred ......... 16,209 16,209 Add - Interest expense ...................... 35,187 48,772 ------------ ------------- EBITDA available to cover fixed charges (b).. $ 854,156 $ 869,046 ============ ============= Total fixed charges - interest expense (a)... $36,817 $ 51,783 ============ ============= Preferred share dividends.................... $ 180,999 $ 176,424 Preferred partnership unit distributions..... 16,209 16,209 Allocations pursuant to EITF Topic D-42...... - - ------------ ------------- Total preferred distributions................ $ 197,208 $ 192,633 ============ ============= Total combined fixed charges and preferred share distributions........................ $ 234,025 $ 244,416 ============ ============= Ratio of EBITDA to fixed charges............. 23.20x 16.78x ============ ============= Ratio of EBITDA to combined fixed charges and preferred share distributions.............. 3.65x 3.56x ============ =============
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 on sale of Shurgard Europe........ - - - - - 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 ------------- ------------- ------------ ------------ ----------- 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 $18,135,000 in interest expense incurred by Shurgard Europe for the nine months ended September 30, 2007, and $7,737,000 for the nine months ended September 30, 2008. As described in Note 3 to our September 30, 2008 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. Exhibit 12