EX-12.1 5 exhibit121123112.htm EXHIBIT 12.1 Exhibit 12.1 12.31.12


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

 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
2009
 
2008
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
5,447

 
$
(3,728
)
 
$
(427
)
 
$
15,569

 
$
28,181

Plus Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of loan costs)
 
79,114

 
89,409

 
59,941

 
46,119

 
45,346

Capitalized interest and loan costs
 
19,792

 
9,130

 
10,015

 
9,683

 
18,132

Estimate of interest within rental expense
 
3,475

 
1,481

 
997

 
871

 
871

Distributions on Cumulative Redeemable Preferred units
 
3,541

 
5,588

 
5,588

 
5,588

 
5,588

Fixed Charges
 
105,922

 
105,608

 
76,541

 
62,261

 
69,937

Plus: Amortization of capitalized interest (1)
 
5,318

 
4,622

 
4,348

 
4,067

 
3,669

Less: Capitalized interest and loan costs
 
(19,792
)
 
(9,130
)
 
(10,015
)
 
(9,683
)
 
(18,132
)
Less: Distributions on Cumulative Redeemable Preferred units
 
(3,541
)
 
(5,588
)
 
(5,588
)
 
(5,588
)
 
(5,588
)
Earnings
 
93,354

 
91,784

 
64,859

 
66,626

 
78,067

 
 
 
 
 
 
 
 
 
 
 
Combined Fixed Charges and Preferred Dividends:
 
 
 
 
 
 
 
 
 
 
Fixed Charges (from above)
 
105,922

 
105,608

 
76,541

 
62,261

 
69,937

Preferred Dividends
 
10,567

 
9,608

 
9,608

 
9,608

 
9,608

Combined Fixed Charges and Preferred Dividends
 
$
116,489

 
$
115,216

 
$
86,149

 
$
71,869

 
$
79,545

Consolidated ratio of earnings to fixed charges
 
0.88x
 
0.87x
 
0.85x
 
1.07x
 
1.12x
Consolidated ratio of earnings to combined fixed charges and preferred dividends
 
0.80x
 
0.80x
 
0.75x
 
0.93x
 
0.98x
Deficiency
 
$
23,135

 
$
23,432

 
$
21,290

 
$
5,243

 
$
1,478

________________________
(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.