EX-12.1 9 dex121.htm STATEMENT OF COMPUTATION Statement of Computation

EXHIBIT 12.1

KILROY REALTY CORPORATION

Statement of Computation of Consolidated Ratio of Earnings to Combined Fixed Charges

and Preferred Dividends

(in thousands, except ratios)

 

     2008     2007     2006     2005     2004  

Earnings:

           

Income from continuing operations before minority interest

    $ 51,323     $ 48,281     $ 48,020     $ 4,838     $ 32,994  

Plus Fixed Charges:

           

Interest expense (including amortization of loan costs)

      40,366       37,502       43,541       38,956       33,678  

Capitalized interest and loan costs

      15,997       18,068       11,309       8,880       7,707  

Estimate of interest within rental expense

      871       871       871       871       871  

Distributions on Cumulative Redeemable Preferred units

      5,588       5,588       5,588       5,588       9,579  
                                        

Fixed Charges

      62,822       62,029       61,309       54,295       51,835  

Plus: Amortization of capitalized interest(1)

      3,598       3,111       2,691       2,403       2,166  

Less: Capitalized interest and loan costs

      (15,997 )     (18,068 )     (11,309 )     (8,880 )     (7,707 )

Less: Distributions on Cumulative Redeemable Preferred units

      (5,588 )     (5,588 )     (5,588 )     (5,588 )     (9,579 )
                                        

Earnings

    $ 96,158     $ 89,765     $ 95,123     $ 47,068     $ 69,709  
                                        

Combined Fixed Charges and Preferred Dividends:

           

Fixed Charges (from above)

      62,822       62,029       61,309       54,295       51,835  

Preferred Dividends

      9,608       9,608       9,608       9,608       3,553  
                                        

Combined Fixed Charges and Preferred Dividends

    $ 72,430     $ 71,637     $ 70,917     $ 63,903     $ 55,388  
                                        

Consolidated ratio of earnings to combined fixed charges and preferred dividends

      1.33x       1.25x       1.34x       0.74x       1.26x  
                                        

Deficiency

          $ 16,835    
                

 

(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 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 minority interest plus fixed charges and amortization of capitalized 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. For the year ended December 31, 2008, our earnings were adequate to cover combined fixed charges and preferred dividends.