EX-12.1 2 v57730exv12w1.htm EX-12.1 exv12w1
Exhibit 12.1
KILROY REALTY CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
                                         
    Year Ended December 31,  
    2010     2009     2008     2007     2006  
Earnings:
                                        
Income from continuing operations
     18,937     $ 35,754     $ 45,849     $ 44,560     $ 47,741  
Plus Fixed Charges:
                                        
Interest expense (including amortization of loan costs)
     59,941       46,119       45,346       40,762       43,541  
Capitalized interest and loan costs
     10,015       9,683       18,132       19,516       11,309  
Estimate of interest within rental expense
     997       871       871       871       871  
Distributions on Cumulative Redeemable Preferred units
     5,588       5,588       5,588       5,588       5,588  
 
                              
 
                                        
Fixed Charges
     76,541       62,261       69,937       66,737       61,309  
Plus: Amortization of capitalized interest(1)
     4,348       4,067       3,669       3,132       2,691  
Less: Capitalized interest and loan costs
     (10,015 )     (9,683 )     (18,132 )     (19,516 )     (11,309 )
Less: Distributions on Cumulative Redeemable Preferred units
     (5,588 )     (5,588 )     (5,588 )     (5,588 )     (5,588 )
 
                              
 
                                        
Earnings
     84,223       86,811       95,735       89,325       94,844  
 
                              
 
                                        
Combined Fixed Charges and Preferred Dividends:
                                        
Fixed Charges (from above)
     76,541       62,261       69,937       66,737       61,309  
Preferred Dividends
     9,608       9,608       9,608       9,608       9,608  
 
                                        
Combined Fixed Charges and Preferred Dividends
     86,149     $ 71,869     $ 79,545     $ 76,345     $ 70,917  
 
                                        
Consolidated ratio of earnings to fixed charges
     1.10x       1.39x       1.37x       1.34x       1.55x  
Consolidated ratio of earnings to combined fixed charges and preferred dividends
     0.98x       1.21x       1.20x       1.17x       1.34x  
 
                                        
Deficiency
   $ 1,926                                  
 
                                      
 
(1)   Amount represents an estimate of capitalized interest that has been amortized each year based on our established depreciation policy and an analysis of total interest costs and loan costs capitalized since 1997.
We have computed the ratio of earnings to fixed charges by dividing earnings by fixed charges. Earnings consist of income from continuing operations before the effect of noncontrolling interest plus fixed charges and amortization of capital interest, reduced by capitalized interest and loan costs and distributions on cumulative redeemable preferred units. Fixed charges consist of interest costs, whether expensed or capitalized, amortization of loan costs, an estimate of the interest within rental expense, and distributions on cumulative redeemable preferred units.
We have computed the consolidated ratio of earnings to combined fixed charges and preferred dividends by dividing earnings by combined fixed charges and preferred dividends. Earnings consist of income from continuing operations before the effect of noncontrolling interest plus fixed charges and amortization of capitalized interest, reduced by capitalized interest and loan costs and distributions on Series A cumulative redeemable preferred units. Fixed charges consist of interest costs, whether expensed or capitalized, amortization of loan costs, an estimate of the interest within rental expense, and distributions on Series A cumulative redeemable preferred units.