EX-12.2 3 a13-13812_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)

 

 

 

Six Months
Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30,

 

Year Ended December 31,

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before income tax expense

 

$

72,086

 

$

104,292

 

$

76,437

 

$

27,389

 

$

64,621

 

$

44,932

 

Equity in earnings and gains on equity transactions of investees

 

(4,421

)

(18,666

)

(22,554

)

(43,272

)

(6,546

)

 

Fixed charges before preferred distributions

 

96,106

 

204,244

 

195,024

 

183,433

 

173,458

 

180,553

 

Distributions from investees

 

4,279

 

16,816

 

16,617

 

16,119

 

4,975

 

 

Adjusted Earnings

 

$

168,050

 

$

306,686

 

$

265,524

 

$

183,669

 

$

236,508

 

$

225,485

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed Charges and Preferred Distributions:

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

96,106

 

$

204,244

 

$

195,024

 

$

183,433

 

$

173,458

 

$

180,553

 

Preferred distributions

 

22,302

 

51,552

 

46,985

 

47,733

 

50,668

 

50,668

 

Combined Fixed Charges and Preferred Distributions

 

$

118,408

 

$

255,796

 

$

242,009

 

$

231,166

 

$

224,126

 

$

231,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of Earnings to Combined Fixed Charges and Preferred Distributions

 

1.4x

 

1.2x

 

1.1x

 

0.8x

(1)

1.1x

 

1.0x

(2)

 


(1)    The deficiency for this period was $47,497 and primarily reflects a loss on asset impairment of $29,949 and acquisition related costs of $21,553.

(2)    The deficiency for this period was $5,736.