EX-12.1 3 exhibit1211.htm EXHIBIT 12.1 Exhibit 12.1 KRC 12.13 Ratio of Earnings
Exhibit 12.1

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

 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings:
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
15,837

 
$
(3,505
)
 
$
(15,584
)
 
$
(6,729
)
 
$
7,709

Plus Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense (including amortization of loan costs)
 
75,870

 
79,114

 
85,785

 
55,082

 
40,926

Capitalized interest and loan costs
 
35,368

 
19,792

 
9,130

 
10,015

 
9,683

Estimate of interest within rental expense
 
4,073

 
3,475

 
1,481

 
997

 
871

Distributions on Cumulative Redeemable Preferred units
 
—

 
3,541

 
5,588

 
5,588

 
5,588

Fixed Charges
 
115,311

 
105,922

 
101,984

 
71,682

 
57,068

Plus: Amortization of capitalized interest (1)
 
5,823

 
5,318

 
4,622

 
4,348

 
4,067

Less: Capitalized interest and loan costs
 
(35,368
)
 
(19,792
)
 
(9,130
)
 
(10,015
)
 
(9,683
)
Less: Distributions on Cumulative Redeemable Preferred units
 
—

 
(3,541
)
 
(5,588
)
 
(5,588
)
 
(5,588
)
Earnings
 
101,603

 
84,402

 
76,304

 
53,698

 
53,573

 
 
 
 
 
 
 
 
 
 
 
Combined Fixed Charges and Preferred Dividends:
 
 
 
 
 
 
 
 
 
 
Fixed Charges (from above)
 
115,311

 
105,922

 
101,984

 
71,682

 
57,068

Preferred Dividends
 
13,250

 
10,567

 
9,608

 
9,608

 
9,608

Combined Fixed Charges and Preferred Dividends
 
$
128,561

 
$
116,489

 
$
111,592

 
$
81,290

 
$
66,676

Consolidated ratio of earnings to fixed charges
 
0.88x
 
0.80x
 
0.75x
 
0.75x
 
0.94x
Consolidated ratio of earnings to combined fixed charges and preferred dividends
 
0.79x
 
0.72x
 
0.68x
 
0.66x
 
0.80x
Deficiency
 
$
26,958

 
$
32,087

 
$
35,288

 
$
27,592

 
$
13,103

________________________
(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.