EX-12.1 2 w38134exv12w1.htm COMPUTATION OF EARNINGS BRANDYWINE REALTY TRUST exv12w1
 

Exhibit 12.1
Brandywine Realty Trust
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Share Distributions
(in thousands)
                                                         
    For the six months ended June 30,     For the years ended December 31,  
    2007     2006     2006     2005     2004     2003     2002  
Earnings before fixed charges:
                                                        
Add:
                                                        
Income (loss) from continuing operations (a)
   $ (6,250 )   $ (20,862 )   $ (18,423 )   $ 33,065     $ 49,784     $ 65,588     $ 35,977  
Minority interest attributable to continuing operations
     (349 )     (1,423 )     (1,493 )     1,059       2,183       8,827       8,813  
Fixed charges — per below
     94,930       91,304       191,614       86,191       61,443       69,476       76,950  
Less:
                                                        
Capitalized interest
     (8,217 )     (4,916 )     (9,537 )     (9,603 )     (3,030 )     (1,503 )     (2,949 )
Preferred Distributions of consolidated subsidiaries
     —       —       —       —       (832 )     (7,069 )     (7,069 )
 
                                          
Earnings before fixed charges
   $ 80,114     $ 64,103     $ 162,161     $ 110,712     $ 109,548     $ 135,319     $ 111,722  
 
                                          
 
                                                        
Fixed charges and Preferred Distributions:
                                                        
Interest expense (including amortization)
   $ 83,484     $ 83,247     $ 175,784     $ 73,918     $ 54,610     $ 57,835     $ 63,522  
Capitalized interest
     8,217       4,916       9,537       9,603       3,030       1,503       2,949  
Proportionate share of interest for unconsolidated real estate ventures
     3,229       3,141       6,293       2,670       2,971       3,069       3,410  
Distributions to preferred unitholders in Operating Partnership
     —       —       —       —       832       7,069       7,069  
 
                                          
Total Fixed Charges
     94,930       91,304       191,614       86,191       61,443       69,476       76,950  
 
                                                        
Income allocated to preferred shareholders
     3,996       3,996       7,992       7,992       9,720       11,906       11,906  
 
                                          
Total Preferred Distributions
     3,996       3,996       7,992       7,992       9,720       11,906       11,906  
 
                                          
Total combined fixed charges and preferred distributions
   $ 98,926     $ 95,300     $ 199,606     $ 94,183     $ 71,163     $ 81,382     $ 88,856  
 
                                          
 
                                                        
Ratio of earnings to combined fixed charges and preferred distributions
     (b )     (b )     (b )     1.18       1.54       1.66       1.26  
 
                                          
 
(a)   Amounts for the six-months ended June 30, 2007 and 2006 and for the years ended December 31, 2006, 2005, 2004, 2003 and 2002 have been reclassified to present properties sold consistent with the presentation for the period ended June 30, 2007. As a result, operations have been reclassified to discontinued operations from continuing operations for all periods presented.
 
(b)   Due to the registrant’s loss in the period, the coverage ratio was less than 1:1. The registrant must generate additional earnings of $18,812 and $31,197 for the six-months ended June 30, 2007 and 2006, respectively and $37,445 for the year ended December 31, 2006 to achieve a coverage ratio of 1:1.