EX-12.2 7 dex122.htm STATEMENT OF COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES Statement of Computation of Consolidated Ratio of Earnings to Fixed Charges

Exhibit 12.2

KILROY REALTY, L.P.

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   
                                        

Fixed Charges

     70,953        56,673        64,349        61,149        55,721   

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
                                        

Earnings

   $ 84,223      $ 86,811      $ 95,735      $ 89,325      $ 94,844   

Ratio of earnings to fixed charges

     1.19x        1.53x        1.49x        1.46x        1.70x   
                                        

 

(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 capitalized interest and reduced by capitalized interest and loan costs. Fixed charges consist of interest costs, whether expensed or capitalized, amortization of loan costs and an estimate of the interest within rental expense.