Property Acquisition

On July 24, 2012, the Company acquired a 958,000 square foot industrial park consisting of eight single-story buildings located in Kent Valley, Washington, for a purchase price of $37.6 million. The park was 52.3% occupied at the time of acquisition.

Property Disposition

Subsequent to September 30, 2012, the Company completed the sale of Quail Valley Business Park, a 66,000 square foot flex park in Houston, Texas, for $2.3 million.

Financial Condition

The following are key financial ratios with respect to the Company’s leverage at and for the three months ended September 30, 2012:
        Ratio of FFO to fixed charges (1)       10.8x
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 $66.82 at September 30, 2012)
39.3 %
Available balance under the $250.0 million unsecured credit facility at September 30, 2012 $250.0 million

(1) Fixed charges include interest expense of $5.2 million.

Distributions Declared

The Board of Directors declared a quarterly dividend of $0.44 per common share on October 29, 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 December 27, 2012 to shareholders of record on December 12, 2012.


Dividend Rate

Dividend Declared
Series R 6.875 % $ 0.429688
Series S 6.450 % $ 0.403125
Series T 6.000 % $ 0.375000
Series U 5.750 % $ 0.427257

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 October 29, 2012, the Company wholly owned 28.1 million rentable square feet with approximately 4,600 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 (2.3 million sq. ft.), Washington (1.5 million sq. ft.), Oregon (1.3 million sq. ft.) and Arizona (0.7 million sq. ft.).

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