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<p style="text-indent: -0.2in; margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b>2. Summary of significant accounting policies </b></p>
<p style="text-indent: -0.2in; margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<div>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Basis of presentation</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2011 are not necessarily indicative of the results that may be expected for the year ended December 31, 2011. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2010. </p>
<p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The accompanying consolidated financial statements include the accounts of PSB and the Operating Partnership. All significant inter-company balances and transactions have been eliminated in the consolidated financial statements.</p>
<p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Noncontrolling Interests</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company's noncontrolling interests are reported as a component of equity separate from the parent's equity. Purchases or sales of equity interests that do not result in a change in control are accounted for as equity transactions. In addition, net income attributable to the noncontrolling interest is included in consolidated net income on the face of the income statement and, upon a gain or loss of control, the interest purchased or sold, as well as any interest retained, is recorded at fair value with any gain or loss recognized in earnings. </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Use of estimates</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from these estimates.</p><font style="font-family: 'Times New Roman','serif'; background: yellow; font-size: 10pt;" class="_mt"><br /></font>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Allowance for doubtful accounts</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="font-size: 8pt;" class="_mt"> </font> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company monitors the collectability of its receivable balances including the deferred rent receivable on an ongoing basis. Based on these reviews, the Company maintains an allowance for doubtful accounts for estimated losses resulting from the possible inability of tenants to make contractual rent payments to the Company. A provision for doubtful accounts is recorded during each period. The allowance for doubtful accounts, which represents the cumulative allowances less write-offs of uncollectible rent, is netted against tenant and other receivables on the consolidated balance sheets. Tenant receivables are net of an allowance for uncollectible accounts totaling $400,000 at March 31, 2011 and December 31, 2010.</p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Financial instruments</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The methods and assumptions used to estimate the fair value of financial instruments are described below. The Company has estimated the fair value of financial instruments using available market information and appropriate valuation methodologies. Considerable judgment is required in interpreting market data to develop estimates of market value. Accordingly, estimated fair values are not necessarily indicative of the amounts that could be realized in current market exchanges.</p>
<p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company considers all highly liquid investments with a remaining maturity of three months or less at the date of purchase to be cash equivalents. Due to the short period to maturity of the Company's cash and cash equivalents, accounts receivable, other assets and accrued and other liabilities, the carrying values as presented on the consolidated balance sheets are reasonable estimates of fair value. Based on borrowing rates currently available to the Company, the carrying amount of debt approximates fair value.</p>
<p style="text-align: justify; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Financial assets that are exposed to credit risk consist primarily of cash and cash equivalents and receivables. Cash and cash equivalents, which consist primarily of money market investments, are only invested in entities with an investment grade rating. Receivables are comprised of balances due from a large number of customers. Balances that the Company expects to become uncollectible are reserved for or written off.</p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Real estate facilities</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Real estate facilities are recorded at cost. Costs related to the renovation or improvement of the properties are capitalized. Expenditures for repairs and maintenance are expensed as incurred. Expenditures that are expected to benefit a period greater than two years and exceed $2,000 are capitalized and depreciated over the estimated useful life. Buildings and equipment are depreciated on the straight-line method over the estimated useful lives, which are generally 30 and five years, respectively. Transaction costs, which include tenant improvements and lease commissions, in excess of $1,000 for leases with terms greater than one year are capitalized and depreciated over their estimated useful lives. Transaction costs for leases of one year or less or less than $1,000 are expensed as incurred.</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Intangible assets/liabilities</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Intangible assets and liabilities include above-market and below-market in-place lease values of acquired properties based on the present value (using an interest rate which reflects the risks associated with the leases acquired) of the difference between (i) the contractual amounts to be paid pursuant to the in-place leases and (ii) management's estimate of fair market lease rates for the corresponding in-place leases, measured over a period equal to the remaining non-cancelable term of the lease. The capitalized above-market and below-market lease values (included in other assets and accrued liabilities in the accompanying consolidated balance sheets) are amortized to rental income over the remaining non-cancelable terms of the respective leases. The Company recorded net amortization of $209,000 and $37,000 of intangible assets and liabilities resulting from the above-market and below-market lease values during the three months ended March 31, 2011 and 2010, respectively. As of March 31, 2011, the value of in-place leases resulted in a net intangible asset of $5.1 million, net of $2.4 million of accumulated amortization with a weighted average amortization period of 6.6 years, and a net intangible liability of $2.0 million, net of $1.7 million of accumulated amortization with a weighted average amortization period of 4.9 years. As of December 31, 2010, the value of in-place leases resulted in a net intangible asset of $5.4 million, net of $2.1 million of accumulated amortization, and a net intangible liability of $2.2 million, net of $1.5 million of accumulated amortization.<font style="background: yellow;" class="_mt"> </font></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Evaluation of asset impairment</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company evaluates its assets used in operations by identifying indicators of impairment and by comparing the sum of the estimated undiscounted future cash flows for each asset to the asset's carrying value. When indicators of impairment are present and the sum of the undiscounted future cash flows is less than the carrying value of such asset, an impairment loss is recorded equal to the difference between the asset's current carrying value and its value based on discounting its estimated future cash flows. In addition, the Company evaluates its assets held for disposition for impairment. Assets held for disposition are reported at the lower of their carrying value or fair value, less cost of disposition. At March 31, 2011, the Company did not consider any assets to be impaired.</p>
<p style="text-align: justify; margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Stock compensation</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">All share-based payments to employees, including grants of employee stock options, are recognized as stock compensation in the Company's income statement based on their fair values. See Note 11.</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Revenue and expense recognition</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company must meet four basic criteria before revenue can be recognized: persuasive evidence of an arrangement exists; the delivery has occurred or services rendered; the fee is fixed or determinable; and collectability is reasonably assured. All leases are classified as operating leases. Rental income is recognized on a straight-line basis over the terms of the leases. Straight-line rent is recognized for all tenants with contractual fixed increases in rent that are not included on the Company's credit watch list. Deferred rent receivable represents rental revenue recognized on a straight-line basis in excess of billed rents. Reimbursements from tenants for real estate taxes and other recoverable operating expenses are recognized as rental income in the period the applicable costs are incurred. Property management fees are recognized in the period earned.</p>
<p style="text-align: justify; margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Costs incurred in connection with leasing (primarily tenant improvements and lease commissions) are capitalized and amortized over the lease period.</p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Gains from sales of real estate facilities</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company recognizes gains from sales of real estate facilities at the time of sale using the full accrual method, provided that various criteria related to the terms of the transactions and any subsequent involvement by the Company with the properties sold are met. If the criteria are not met, the Company defers the gains and recognizes them when the criteria are met or using the installment or cost recovery methods as appropriate under the circumstances.</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>General and administrative expenses</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">General and administrative expenses include executive and other compensation, office expense, professional fees, aquisition transaction costs state income taxes and other such administrative items.</p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Income taxes</i></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company has qualified and intends to continue to qualify as a REIT, as defined in Section 856 of the Internal Revenue Code. As a REIT, the Company is not subject to federal income tax to the extent that it distributes its REIT taxable income to its shareholders. A REIT must distribute at least 90% of its taxable income each year. In addition, REITs are subject to a number of organizational and operating requirements. If the Company fails to qualify as a REIT in any taxable year, the Company will be subject to federal income tax (including any applicable alternative minimum tax) based on its taxable income using corporate income tax rates. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain state and local taxes on its income and property and to federal income and excise taxes on its undistributed taxable income. The Company believes it met all organization and operating requirements to maintain its REIT status during 2010 and intends to continue to meet such requirements for 2011. Accordingly, no provision for income taxes has been made in the accompanying consolidated financial statements.</p>
<p style="text-align: justify; margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company can recognize a tax benefit only if it is "more likely than not" that a particular tax position will be sustained upon examination or audit. To the extent that the "more likely than not" standard has been satisfied, the benefit associated with a position is measured as the largest amount that is greater than 50% likely of being recognized upon settlement. As of March 31, 2011, the Company did not recognize any tax benefit for uncertain tax positions.</p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Accounting for preferred equity issuance costs</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company records issuance costs as a reduction to paid-in capital on its balance sheet at the time the preferred securities are issued and reflects the carrying value of the preferred equity at the stated value. The Company records issuance costs as non-cash preferred equity distributions at the time it notifies the holders of preferred stock or units of its intent to redeem such shares or units.</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i> </i> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Net income allocation</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Net income was allocated as follows (in thousands):</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="background: yellow;" class="_mt"> </font> </p>
<table style="border-collapse: collapse; font-family: 'Calibri','sans-serif'; margin-left: 2.35pt; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="650">
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="510">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 105pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="140" colspan="2">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><font style="line-height: 93%; font-size: 8pt;" class="_mt"> For the Three Months</font></b></p>
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> Ended March 31, </font></u></b></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="510">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> 2011 </font></u></b></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> 2010 </font></u></b></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net income allocable to noncontrolling interests:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Noncontrolling interests — common units:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Continuing operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 4,901</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 2,322</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Discontinued operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> —</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 1,191</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 27.65pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to noncontrolling interests — common units </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 4,901</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 3,513</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Noncontrolling interests — preferred units:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Distributions to preferred unit holders </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 99</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 1,382</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Gain on repurchase of preferred units, net of issuance costs </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> (7,389</u>)</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> —</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 27.65pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to noncontrolling interests — preferred units </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> (7,290</u>)</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 1,382</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 33.8pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to noncontrolling interests </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> (2,389</u>)</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 4,895</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net income allocable to PS Business Parks, Inc.:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Common shareholders:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Continuing operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 16,562</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 7,761</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Discontinued operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> —</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 3,979</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 27.65pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to common shareholders </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 16,562</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 11,740</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Preferred shareholders:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Distributions to preferred shareholders </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 10,450</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 11,155</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Restricted stock unit holders:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Continuing operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 50</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 34</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 19.45pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Discontinued operations </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> —</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 17</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 27.65pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to restricted stock unit holders </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 50</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 51</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5pt; margin: 0in 5.05pt 0pt 33.8pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Total net income allocable to PS Business Parks, Inc. </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 27,062</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 22,946</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 382.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="510">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 24,673 </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 52.5pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="70">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 27,841 </font></p></td></tr></table>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i><font style="background: yellow;" class="_mt"> </font></i> </p><i><font style="font-family: 'Times New Roman','serif'; background: yellow; font-size: 10pt;" class="_mt"><br /></font></i>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Net income per common share</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Per share amounts are computed using the number of weighted average common shares outstanding. "Diluted" weighted average common shares outstanding includes the dilutive effect of stock options and restricted stock units under the treasury stock method. "Basic" weighted average common shares outstanding excludes such effect. The Company's restricted stock units are participating securities and included in the computation of basic and diluted weighted average common shares outstanding. The Company's allocation of net income to the restricted stock unit holders are paid non-forfeitable dividends in excess of the expense recorded which results in a reduction in net income allocable to common shareholders and unit holders. Earnings per share has been calculated as follows (in thousands, except per share amounts):</p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="background: yellow;" class="_mt"> </font> </p>
<table style="border-collapse: collapse; font-family: 'Calibri','sans-serif'; font-size: 11pt;" class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" width="655">
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="495">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 120pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="160" colspan="2">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><font style="line-height: 93%; font-size: 8pt;" class="_mt"> For the Three Months</font></b></p>
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> Ended March 31, </font></u></b></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="495">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> 2011 </font></u></b></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="top" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><b><u><font style="line-height: 93%; font-size: 8pt;" class="_mt"> 2010 </font></u></b></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net income allocable to common shareholders </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 16,562 </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 11,740 </font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Weighted average common shares outstanding:</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Basic weighted average common shares outstanding </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 24,685</font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 24,413</font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net effect of dilutive stock compensation — based on treasury stock method using average market price </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 107</u></font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> <u> 151</u></font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt 12.55pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Diluted weighted average common shares outstanding </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 24,792 </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> 24,564 </font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net income per common share — Basic </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 0.67 </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 0.48 </font></p></td></tr>
<tr><td style="padding-bottom: 0in; padding-left: 2.35pt; width: 371.35pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="495">
<p style="line-height: 93%; text-indent: -5.05pt; margin: 0in 5.05pt 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt">Net income per common share — Diluted </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 0.67 </font></p></td>
<td style="padding-bottom: 0in; padding-left: 2.35pt; width: 60pt; padding-right: 2.35pt; padding-top: 0in;" valign="bottom" width="80">
<p style="border-bottom: black 3px double; line-height: 93%; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="line-height: 93%;" class="_mt"> $ 0.48 </font></p></td></tr></table>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="background: yellow;" class="_mt"> </font> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><a name="OLE_LINK2"> </a><a name="OLE_LINK1">Options to purchase 66,000 and 331,000 shares for the three months ended March 31, 2011 and 2010, respectively, were not included in the computation of diluted net income per share because such options were considered anti-dilutive</a>. <font style="background: yellow;" class="_mt"> </font></p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Segment reporting</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">The Company views its operations as one segment. </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><font style="background: yellow;" class="_mt"> </font> </p>
<p style="margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"><i>Reclassifications</i></p>
<p style="margin: 0in 0in 0pt 0.2in; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal"> </p>
<p style="text-align: justify; text-indent: 0.2in; margin: 0in 0in 0pt; font-family: 'Times New Roman','serif'; font-size: 10pt;" class="MsoNormal">Certain reclassifications have been made to the consolidated financial statements for 2010 in order to conform to the 2011 presentation.</p></div></div> </div>2. Summary of significant accounting policies
Basis of presentation
The accompanying unaudited consolidated financial statementsfalsefalsefalsefalsefalse | Otherus-types:textBlockItemTypestringThis element may be used to describe all significant accounting policies of the reporting entity.Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 22
-Paragraph 8
falsefalse
12Summary of Significant Accounting PoliciesUnKnownUnKnownUnKnownUnKnownfalsetrue