In connection with the Series M and O redemptions, the Company reported the excess of the redemption amount over the carrying amount of $5.3 million, representing the original issuance costs, as a reduction of net income allocable to common shareholders and unit holders for the three months ended March 31, 2012.

The preferred equity transactions noted above will result in a net reduction in annual cash distributions of $1.4 million.

Financial Condition

The following are key financial ratios with respect to the Company’s leverage at and for the three months ended March 31, 2012:
Ratio of FFO to fixed charges (1)         10.2x
Ratio of FFO to fixed charges and preferred distributions (1) 3.1x
Debt and preferred equity to total market capitalization (based on

common stock price of $65.54 at March 31, 2012)
38.8 %
Available balance under the $250.0 million unsecured credit facility at March 31, 2012 $144.0 million

(1) Fixed charges include interest expense of $5.3 million.

Distributions Declared

The Board of Directors declared a quarterly dividend of $0.44 per common share on April 30, 2012. Distributions were also declared on the various series of depositary shares, each representing 1/1,000 of a share of preferred stock listed below. Distributions are payable June 28, 2012 to shareholders of record on June 13, 2012.


Dividend Rate

Dividend Declared
Series H 7.000 % $ 0.437500
Series I 6.875 % $ 0.429688
Series P 6.700 % $ 0.418750
Series R 6.875 % $ 0.429688
Series S 6.450 % $ 0.326979

Company Information

PS Business Parks, Inc., a member of the S&P SmallCap 600, is a self-advised and self-managed real estate investment trust (“REIT”) that acquires, develops, owns and operates commercial properties, primarily multi-tenant flex, office and industrial space. The Company defines “flex” space as buildings that are configured with a combination of office and warehouse space and can be designed to fit a number of uses (including office, assembly, showroom, laboratory, light manufacturing and warehouse space). As of March 31, 2012, the Company wholly owned 27.2 million rentable square feet with approximately 4,400 customers located in eight states, concentrated in California (11.1 million sq. ft.), Virginia (4.2 million sq. ft.), Florida (3.7 million sq. ft.), Texas (3.3 million sq. ft.), Maryland (2.4 million sq. ft.), Oregon (1.3 million sq. ft.), Arizona (0.7 million sq. ft.) and Washington (0.5 million sq. ft.).

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