EX-12 5 l03945bexv12.htm EX-12 RATIO OF EARNINGS TO FIXED CHARGES EX-12 RATIO OF EARNINGS TO FIXED CHARGES
 

     
Parkway Properties, Inc   Exhibit 12
Ratio of earnings to fixed charges (Dollars in thousands)    
                                                   
      Nine Months   Year Ended December 31
      Ended  
      September 30, 2003   2002   2001   2000   1999   1998
     
 
 
 
 
 
Net income
   $ 35,846     $ 29,512     $ 26,548     $ 34,896     $ 26,327     $ 27,425  
Adjustments:
                                                
 
Extraordinary loss on early extinguishment of debt (1)
     —       —       —       —       —       —  
 
Discontinued operations
     —       (817 )     —       —       —       —  
 
(Gain) loss on real estate and securities
     (10,661 )     2,068       (1,611 )     (9,471 )     (795 )     (4,788 )
 
Minority interest
     2       2       3       4       2       1  
 
Income taxes
     132       (23 )     164       160       —       —  
 
    
     
     
     
     
     
 
Consolidated pretax income from continuing operations
     25,319       30,742       25,104       25,589       25,534       22,638  
Less equity in earnings of unconsolidated joint ventures
     (1,644 )     (824 )     (62 )     (47 )     (39 )     (47 )
Distributed income from unconsolidated joint ventures
     2,339       1,641       34       20       23       24  
Interest expense
     14,201       25,654       26,381       22,584       18,765       14,902  
Amortization of loan costs
     637       832       944       714       685       1,107  
 
    
     
     
     
     
     
 
Earnings
   $ 40,852     $ 58,045     $ 52,401     $ 48,860     $ 44,968     $ 38,624  
 
    
     
     
     
     
     
 
 
(1) In accordance with SFAS 145 “Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections”, effective for fiscal years beginning after May 15, 2002, any gain or loss on extinguishment of debt that was classified as an extraordinary item in prior periods shall be reclassified. Therefore, the amounts recognized as extraordinary losses on the early extinguishment of debt of $833 and $1,302 for the years ended December 31, 2002 and 2001, respectively, have been reclassified to interest expense.
 
Interest expense
   $ 14,201     $ 25,654     $ 26,381     $ 22,584     $ 18,765     $ 14,902  
Capitalized interest
     —       —       —       520       661       —  
Amortization of loan costs
     637       832       944       714       685       1,107  
Preferred stock dividends
     8,852       12,054       9,046       5,797       5,797       3,913  
 
    
     
     
     
     
     
 
Fixed charges
   $ 23,663     $ 38,540     $ 36,371     $ 29,615     $ 25,908     $ 19,922  
 
    
     
     
     
     
     
 
Ratio of earnings to fixed charges
     1.73       1.51       1.44       1.65       1.74       1.94