EX-12.2 4 eqc123114exhibit122.htm EXHIBIT 12.2 EQC 12.31.14 Exhibit 12.2



Exhibit 12.2
EQUITY COMMONWEALTH
COMPUTATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED DISTRIBUTIONS
(dollars in thousands)

 
Year Ended December 31,
 
 
2014
 
2013(1)
 
2012(1)
 
2011(1)
 
2010(1)
 
Earnings:
 

 
 

 
 

 
 

 
 

 
(Loss) income from continuing operations before income tax expense and equity in earnings of investees
$
(63
)
 
$
(62,034
)
 
$
84,484

 
$
53,992

 
$
10,406

 
Gains on equity transactions of investees
(17,020
)
 
—

 
(7,246
)
 
(11,177
)
 
(34,808
)
 
Fixed charges before preferred distributions
143,838

 
174,753

 
204,244

 
195,024

 
183,433

 
Distributions from investees
20,680

 
24,079

 
16,816

 
16,617

 
16,119

 
Adjusted Earnings
$
147,435

 
$
136,798

 
$
298,298

 
$
254,456

 
$
175,150

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges and Preferred Distributions:
 

 
 

 
 

 
 

 
 

 
Interest expense (including net amortization of debt discounts, premiums and deferred financing fees)
$
143,838

 
$
174,753

 
$
204,244

 
$
195,024

 
$
183,433

 
Preferred distributions
32,095

 
44,604

 
51,552

 
46,985

 
47,733

 
Combined Fixed Charges and Preferred Distributions
$
175,933

 
$
219,357

 
$
255,796

 
$
242,009

 
$
231,166

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Combined Fixed Charges and Preferred Distributions
0.8x

(2
)
0.6x

(3
)
1.2x

 
1.1x

 
0.8x

(4
)
 
 
 
 
 
 
 
 
 
 
 

(1)
Reclassifications have been made to the prior years' financial statements to conform to the current year's presentation.
(2)
The deficiency for this period was $28,498.
(3)
The deficiency for this period was $82,559.
(4)
The deficiency for this period was $56,016.