EX-12.1 4 a2218947zex-12_1.htm EX-12.1

Exhibit 12.1

 

STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS OF CUBESMART

 

CubeSmart

Computation of Ratio of Earnings to Combined

Charges and Preference Dividends

(dollars in thousands)

 

 

 

Year Ended December 31,

 

 

 

2009

 

2010

 

2011

 

2012

 

2013

 

Earnings before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations

 

$

(25,370

)

$

(17,443

)

$

(13,400

)

$

(13,276

)

$

10,409

 

Fixed charges - per below

 

47,831

 

44,539

 

46,626

 

44,329

 

44,109

 

Less:

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

(73

)

(132

)

(82

)

(185

)

(851

)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before fixed charges

 

22,388

 

26,964

 

33,144

 

30,868

 

53,667

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including amortization of premiums and discounts related to indebtedness) *

 

47,608

 

44,257

 

46,394

 

43,994

 

43,108

 

Early extinguishment of debt

 

 

 

 

 

 

Capitalized interest

 

73

 

132

 

82

 

185

 

851

 

Estimate of interest within rental expense

 

150

 

150

 

150

 

150

 

150

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Charges

 

47,831

 

44,539

 

46,626

 

44,329

 

44,109

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to preferred shareholders

 

 

 

1,218

 

6,008

 

6,008

 

Total combined fixed charges and preferred distributions

 

47,831

 

44,539

 

47,844

 

50,337

 

50,117

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges and preferred dividends (a)

 

0.47

 

0.61

 

0.69

 

0.61

 

1.07

 

 


*  Includes amounts reported in discontinued operations

 

(a)  In fiscal 2009, 2010, 2011 and 2012, earnings were insufficient to cover combined fixed charges and preferred distributions.  CubeSmart must generate additional earnings of $25.4 million, $17.6 million, $14.7 million and $19.5 million to achieve a coverage ratio of 1:1 in fiscal 2009, 2010, 2011 and 2012, respectively.