EX-12 7 q42014exhibit12-ratios.htm EXHIBIT 12 Q4 2014 Exhibit 12 - Ratios


Exhibit 12
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:
 
Three Months Ended December 31,
 
Year Ended December 31,
 
 
2014
 
2014
 
2013
 
2012
 
2011
 
2010
 
Income (loss) from continuing operations
$
2,309

 
$
5,070

 
$
(193
)
 
$
7,768

 
$
(14,389
)
 
$
(10,874
)
 
Additions:
 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
15,183

 
59,785

 
63,573

 
60,627

 
61,402

 
61,839

 
Capitalized interest
697

 
2,142

 
1,236

 
1,688

 
738

 
858

 
 
15,880

 
61,927

 
64,809

 
62,315

 
62,140

 
62,697

 
Deductions:
 
 
 
 
 
 
 
 
 
 
 
 
Capitalized interest
(697
)
 
(2,142
)
 
(1,236
)
 
(1,688
)
 
(738
)
 
(858
)
 
Net income attributable to noncontrolling interests
21

 
38

 
—

 
—

 
(494
)
 
(133
)
 
Adjusted earnings
$
17,513

 
$
64,893

 
$
63,380

 
$
68,395

 
$
46,519

 
$
50,832

 
Fixed charges (from above)
$
15,880

 
$
61,927

 
$
64,809

 
$
62,315

 
$
62,140

 
$
62,697

 
Ratio of earnings to fixed charges
1.10

 
1.05

 
0.98

(1) 
1.10


0.75

(2) 
0.81

(3) 

(1) Due to WRIT's loss from continuing operations, the ratio was less than 1:1. WRIT must generate additional earnings of $1,429 to achieve a ratio of 1:1.
(2) Due to WRIT's loss from continuing operations, the ratio was less than 1:1. WRIT must generate additional earnings of $15,621 to achieve a ratio of 1:1.
(3) Due to WRIT's loss from continuing operations, the ratio was less than 1:1. WRIT must generate additional earnings of $11,865 to achieve a ratio of 1:1.


Debt service coverage ratio:
 
Three Months Ended December 31,
 
Year Ended December 31,
 
2014
 
2014
 
2013
 
2012
 
2011
 
2010
Net income attributable to the controlling interests
$
2,330

 
$
111,639

 
$
37,346

 
$
23,708

 
$
104,884

 
$
37,426

Additions:
 
 
 
 
 
 
 
 
 
 
 
Interest expense, including discontinued operations
15,183

 
59,785

 
64,769

 
64,958

 
66,947

 
68,979

Real estate depreciation and amortization, including discontinued operations
24,503

 
96,011

 
97,901

 
103,934

 
100,528

 
95,746

Income tax expense (benefit)
—

 
117

 
5

 
245

 
1,146

 
—

Real estate impairment, including discontinued operations
—

 
—

 
92

 
2,097

 
15,125

 
—

Non-real estate depreciation
793

 
1,279

 
810

 
914

 
1,001

 
1,102

 
40,479

 
157,192

 
163,577

 
172,148

 
184,747

 
165,827

Deductions:
 
 
 
 
 
 
 
 
 
 
 
Gain on sale of real estate attributable to the controlling interests
—

 
(106,555
)
 
(22,144
)
 
(5,124
)
 
(97,091
)
 
(21,599
)
Loss (gain) on extinguishment of debt
—

 
—

 
2,737

 
—

 
976

 
9,176

Gain from non-disposal activities
—

 
—

 
—

 
—

 
—

 
(7
)
Adjusted EBITDA
$
42,809

 
$
162,276

 
$
181,516

 
$
190,732

 
$
193,516

 
$
190,823

Debt service:
 
 
 
 
 
 
 
 
 
 
 
       Interest expense
$
15,183

 
$
59,785

 
$
64,769

 
$
64,958

 
$
66,947

 
$
68,979

       Principal amortization
1,094

 
3,954

 
3,153

 
5,151

 
4,615

 
4,302

 
$
16,277

 
$
63,739

 
$
67,922

 
$
70,109

 
$
71,562

 
$
73,281

Debt service coverage ratio
2.63

 
2.55

 
2.67

 
2.72

 
2.70

 
2.60