EX-12.1 2 exhibit121123111.htm EXHIBIT 12.1 Exhibit 12.1 12.31.11


Exhibit 12.1
KILROY REALTY CORPORATION
Statement of Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)

 
 
Year Ended December 31,
 
 
2011
 
2010
 
2009
 
2008
 
2007
Earnings:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
5,059

 
$
10,302

 
$
28,032

 
$
40,972

 
$
39,496

Plus Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of loan costs)
 
89,409

 
59,941

 
46,119

 
45,346

 
40,762

Capitalized interest and loan costs
 
9,130

 
10,015

 
9,683

 
18,132

 
19,516

Estimate of interest within rental expense
 
1,481

 
997

 
871

 
871

 
871

Distributions on Cumulative Redeemable Preferred units
 
5,588

 
5,588

 
5,588

 
5,588

 
5,588

Fixed Charges
 
105,608

 
76,541

 
62,261

 
69,937

 
66,737

Plus: Amortization of capitalized interest (1)
 
4,622

 
4,348

 
4,067

 
3,669

 
3,132

Less: Capitalized interest and loan costs
 
(9,130
)
 
(10,015
)
 
(9,683
)
 
(18,132
)
 
(19,516
)
Less: Distributions on Cumulative Redeemable Preferred units
 
(5,588
)
 
(5,588
)
 
(5,588
)
 
(5,588
)
 
(5,588
)
Earnings
 
100,571

 
75,588

 
79,089

 
90,858

 
84,261

 
 
 
 
 
 
 
 
 
 
 
Combined Fixed Charges and Preferred Dividends:
 
 
 
 
 
 
 
 
 
 
Fixed Charges (from above)
 
105,608

 
76,541

 
62,261

 
69,937

 
66,737

Preferred Dividends
 
9,608

 
9,608

 
9,608

 
9,608

 
9,608

Combined Fixed Charges and Preferred Dividends
 
$
115,216

 
$
86,149

 
$
71,869

 
$
79,545

 
$
76,345

Consolidated ratio of earnings to fixed charges
 
0.95
x
 
0.99
x
 
1.27
x
 
1.30
x
 
1.26
x
Consolidated ratio of earnings to combined fixed charges and preferred dividends
 
0.87
x
 
0.88
x
 
1.10
x
 
1.14
x
 
1.10
x
Deficiency
 
$
14,645

 
$
10,561

 
 
 
 
 
 
________________________
(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.