Exhibit 12.1
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(In thousands, except share and per share data)
City Office REIT Inc. | City Office REIT, Inc. Predecessor | |||||||||||||||||||||||||||
Nine months ended September 30, 2017 |
Year ended December 31, 2016 |
Year ended December 31, 2015 |
Period from April 21, 2014 to December 31, 2014 |
Period from January 1, 2014 to April 20, 2014 |
Year ended December 31, 2013 |
Year ended December 31, 2012 |
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Earnings |
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Add: |
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Income/(Loss) from continuing operations before adjustment for income or loss from equity investees |
$ | 10,146 | $ | 376 | $ | (7,667 | ) | $ | (6,855 | ) | $ | (2,530 | ) | $ | (4,580 | ) | $ | (2,388 | ) | |||||||||
Fixed charges |
13,968 | 14,761 | 11,353 | 7,180 | 3,772 | 5,368 | 3,686 | |||||||||||||||||||||
Distributed income of equity investees |
— | — | — | — | — | 403 | 506 | |||||||||||||||||||||
Subtract: |
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Capitalized interest |
— | — | — | — | — | — | — | |||||||||||||||||||||
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Total Earnings |
$ | 24,114 | $ | 15,137 | $ | 3,686 | $ | 325 | $ | 1,242 | $ | 1,191 | $ | 1,804 | ||||||||||||||
Fixed Charges |
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Interest expense |
13,968 | 14,761 | 11,353 | 7,180 | 3,772 | 5,368 | 3,686 | |||||||||||||||||||||
Capitalized interest |
— | — | — | — | — | — | — | |||||||||||||||||||||
Rental expense at computed interest factor(1) |
— | — | — | — | — | — | — | |||||||||||||||||||||
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Total Fixed Charges |
13,968 | 14,761 | 11,353 | 7,180 | 3,772 | 5,368 | 3,686 | |||||||||||||||||||||
Preferred Stock Dividends |
5,556 | 1,781 | — | — | — | — | — | |||||||||||||||||||||
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Combined Fixed Charges and Preferred Stock Dividends |
$ | 19,524 | $ | 16,542 | $ | 11,353 | $ | 7,180 | $ | 3,772 | $ | 5,368 | $ | 3,686 | ||||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends |
1.24 | 0.92 | 0.32 | 0.05 | 0.33 | 0.22 | 0.49 | |||||||||||||||||||||
Inadequate amount |
— | $ | 1,405 | $ | 7,667 | $ | 6,855 | $ | 2,530 | $ | 4,177 | $ | 1,882 |
(1) | Amounts represent those portions of rent expense that are reasonable approximations of interest costs. |