EX-12.2 6 d449736dex122.htm EX-12.2 EX-12.2

Exhibit 12.2

KILROY REALTY, L.P.

Statement of Computation of Ratio of Earnings to Fixed Charges

(in thousands, except ratios)

 

     For the Six
Months Ended
June 30,		     Year Ended December 31,  
     2016     2015     2014     2013     2012     2011  

Earnings:

             

Income (loss) from continuing operations (1)

    $ 212,005      $ 238,604      $ 59,313      $ 14,935      $ (5,475 )    $ (16,664 ) 

Plus Fixed Charges:

             

Interest expense (including amortization of loan costs)

      26,213        57,682        67,571        75,870        79,114        85,785   

Capitalized interest and loan costs

      26,630        51,965        47,090        35,368        19,792        9,130   

Estimate of interest within rental expense

      1,569        3,138        4,270        4,073        3,475        1,481   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed Charges

      54,412        112,785        118,931        115,311        102,381        96,396   

Plus: Amortization of capitalized interest (2)

      4,960        8,412        7,001        5,823        5,318        4,622   

Less: Capitalized interest and loan costs

      (26,630 )      (51,965 )      (47,090 )      (35,368 )      (19,792 )      (9,130 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

    $ 244,747      $ 307,836      $ 138,155      $ 100,701      $ 82,432      $ 75,224   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      4.50x        2.73x        1.16x        0.87x        0.81x        0.78x   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The Company adopted Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity, effective January 1, 2015. As a result, properties classified as held for sale and/or disposed of subsequent to January 1, 2015 that do not represent a strategic shift are no longer presented as discontinued operations. In accordance with the accounting pronouncement, we adopted the guidance on a prospective basis. Therefore our earnings presented prior to adoption do not include the results of operations for properties classified as held for sale and/or disposed of prior to January 1, 2015.
(2) 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 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.