Exhibit 12.1
Corporate Office Properties Trust
Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends
(Dollars in thousands)
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| Years Ended December 31, |
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Earnings: |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Income from continuing operations before equity in loss of unconsolidated entities, income taxes and minority interests |
| $ | 39,681 |
| $ | 40,083 |
| $ | 42,074 |
| $ | 33,317 |
| $ | 24,798 |
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Gain (loss) on sales of real estate, excluding discontinued operations |
| 889 |
| 366 |
| (150 | ) | 472 |
| 2,564 |
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Combined fixed charges and preferred share dividends (from below) |
| 110,541 |
| 85,240 |
| 70,627 |
| 71,541 |
| 57,894 |
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Amortization of capitalized interest |
| 527 |
| 337 |
| 285 |
| 254 |
| 195 |
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Distributed income (loss) of equity investees |
| 26 |
| (164 | ) | (83 | ) | (181 | ) | 295 |
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Subtract: |
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Capitalized interest (from below) |
| (14,559 | ) | (9,871 | ) | (5,112 | ) | (2,846 | ) | (3,091 | ) | |||||
Preferred share dividends included in fixed charges |
| (15,404 | ) | (14,615 | ) | (16,329 | ) | (12,003 | ) | (10,134 | ) | |||||
Preferred unit distributions included in fixed charges |
| (660 | ) | (660 | ) | (179 | ) | (1,049 | ) | (2,287 | ) | |||||
Repurchase of preferred units in excess of recorded book value |
| — |
| — |
| — |
| (11,224 | ) | — |
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Issuance costs associated with redeemed preferred shares |
| (3,896 | ) | — |
| (1,813 | ) | — |
| — |
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Total earnings |
| $ | 117,145 |
| $ | 100,716 |
| $ | 89,320 |
| $ | 78,281 |
| $ | 70,234 |
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Combined fixed charges and preferred share dividends: |
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Interest expense on continuing operations |
| $ | 71,378 |
| $ | 54,872 |
| $ | 42,148 |
| $ | 38,730 |
| $ | 36,501 |
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Interest expense on discontinued operations |
| 1,042 |
| 2,272 |
| 2,115 |
| 2,449 |
| 2,855 |
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Capitalized interest (internal and external) |
| 14,559 |
| 9,871 |
| 5,112 |
| 2,846 |
| 3,091 |
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Amortization of debt issuance costs on continuing operations-expensed |
| 2,847 |
| 2,229 |
| 2,420 |
| 2,756 |
| 2,490 |
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Amortization of debt issuance costs on discontinued operations-expensed |
| 134 |
| 11 |
| 11 |
| 11 |
| 11 |
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Amortization of debt issuance costs-capitalized |
| 237 |
| 272 |
| 113 |
| — |
| 59 |
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Interest included in rental expense |
| 384 |
| 438 |
| 387 |
| 473 |
| 466 |
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Preferred share dividends |
| 15,404 |
| 14,615 |
| 16,329 |
| 12,003 |
| 10,134 |
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Preferred unit distributions |
| 660 |
| 660 |
| 179 |
| 1,049 |
| 2,287 |
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Repurchase of preferred units in excess of recorded book value |
| — |
| — |
| — |
| 11,224 |
| — |
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Issuance costs associated with redeemed preferred shares |
| 3,896 |
| — |
| 1,813 |
| — |
| — |
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Total combined fixed charges and preferred share dividends |
| $ | 110,541 |
| $ | 85,240 |
| $ | 70,627 |
| $ | 71,541 |
| $ | 57,894 |
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Ratio of earnings to combined fixed charges and preferred share dividends |
| 1.06 |
| 1.18 |
| 1.26 |
| 1.09 |
| 1.21 |
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