EX-12 2 psex12_1208.txt EXHIBIT 12 PUBLIC STORAGE EXHIBIT 12 - STATEMENT RE: COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Exhibit - 12
For the Year Ended December 31, -------------------------------------------------------------------------- 2008 2007 2006 2005 2004 ------------- ------------- ------------- ------------- ------------- (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 ------------- ------------- ------------- ------------- ------------- Adjusted net income.......................... 980,534 481,671 336,233 465,427 397,428 Interest expense.......................... 43,944 63,671 33,062 8,216 760 ------------- ------------- ------------- ------------- ------------- Total earnings available to cover fixed charges $ 1,024,478 $ 545,342 $ 369,295 $ 473,643 $ 398,188 ============= ============= ============= ============= ============= 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..... 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........... 22.30x 7.97x 10.32x 42.92x 90.97x ============= ============= ============= ============= ============= Ratio of earnings to combined fixed charges and preferred share distributions.............. 3.75x 1.67x 1.23x 2.27x 1.96x ============= ============= ============= ============= ============= Supplemental disclosure of Ratio of Earnings before Interest, Taxes, -------------------------------------------------------------------- Depreciation and Amortization ("EBITDA") to fixed charges: ---------------------------------------------------------- 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 ------------- ------------- ------------- ------------- ------------- EBITDA available to cover fixed charges (b).. $ 1,140,346 $ 1,196,961 $ 838,613 $ 710,137 $ 611,478 ============= ============= ============= ============= ============= 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..... 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 EBITDA to fixed charges............. 24.82x 17.50x 23.44x 64.35x 139.70x ============= ============= ============= ============= ============= Ratio of EBITDA to combined fixed charges and preferred share distributions.............. 4.17x 3.66x 2.79x 3.40x 3.00x ============= ============= ============= ============= =============
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