EX-12.2 4 a11-25722_1ex12d2.htm EX-12.2

Exhibit 12.2

 

COMMONWEALTH REIT

COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DISTRIBUTIONS

(dollars in thousands)

 

 

 

Nine Months Ended
September 30,

 

Year Ended December 31,

 

 

 

2011

 

2010(1)

 

2010(1)

 

2009(1)

 

2008(1)

 

2007(1)

 

2006(1)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

60,008

 

$

57,572

 

$

39,374

 

$

72,429

 

$

58,865

 

$

64,733

 

$

195,695

 

Equity in earnings and gains on equity transactions of investees

 

(19,567

)

(41,451

)

(43,272

)

(6,546

)

—

 

—

 

(119,423

)

Fixed charges before preferred distributions

 

145,037

 

137,506

 

183,433

 

173,458

 

180,553

 

171,571

 

165,894

 

Distributions from investees

 

12,438

 

12,039

 

16,119

 

4,975

 

—

 

—

 

5,387

 

Capitalized interest

 

—

 

—

 

—

 

—

 

—

 

(489

)

(335

)

Adjusted Earnings

 

$

197,916

 

$

165,666

 

$

195,654

 

$

244,316

 

$

239,418

 

$

235,815

 

$

247,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges and Preferred Distributions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including net amortization of debt discounts, premiums and deferred financing fees)

 

$

145,037

 

$

137,506

 

$

183,433

 

$

173,458

 

$

180,553

 

$

171,571

 

$

165,894

 

Capitalized interest

 

—

 

—

 

—

 

—

 

—

 

489

 

335

 

Preferred distributions

 

33,162

 

38,001

 

47,733

 

50,668

 

50,668

 

60,572

 

44,692

 

Combined Fixed Charges and Preferred Distributions

 

$

178,199

 

$

175,507

 

$

231,166

 

$

224,126

 

$

231,221

 

$

232,632

 

$

210,921

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Combined Fixed Charges and Preferred Distributions

 

1.1x

 

0.9x

 

0.8x

 

1.1x

 

1.0x

 

1.0x

 

1.2x

 

 

(1)             Reclassifications have been made to the prior year’s financial statements to conform to the current year’s presentation.