EX-12.1 2 a14-26755_1ex12d1.htm EX-12.1

Exhibit 12.1

CubeSmart

Computation of Ratio of Earnings to Fixed Charges

(dollars in thousands)

|  | Year Ended December 31, |
|  | 2010 |  | 2011 |  | 2012 |  | 2013 |  | 2014 |
Earnings before fixed charges: |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |
(Loss) income from continuing operations |  | $ | (17,443 | ) | $ | (13,400 | ) | $ | (13,276 | ) | $ | 10,409 |  | $ | 26,366 |
Fixed charges - per below |  | 44,539 |  | 46,626 |  | 44,329 |  | 44,109 |  | 50,470 |
Less: |  |  |  |  |  |  |  |  |  |  |
Capitalized interest |  | (132 | ) | (82 | ) | (185 | ) | (851 | ) | (1,328 | )
Earnings before fixed charges |  | 26,964 |  | 33,144 |  | 30,868 |  | 53,667 |  | 75,508 |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |
Interest expense (including amortization of premiums and discounts related to indebtedness) * |  | 44,257 |  | 46,394 |  | 43,994 |  | 43,108 |  | 48,992 |
Capitalized interest |  | 132 |  | 82 |  | 185 |  | 851 |  | 1,328 |
Estimate of interest within rental expense |  | 150 |  | 150 |  | 150 |  | 150 |  | 150 |
Total Fixed Charges |  | 44,539 |  | 46,626 |  | 44,329 |  | 44,109 |  | 50,470 |
Income allocated to preferred shareholders |  | — |  | 1,218 |  | 6,008 |  | 6,008 |  | 6,008 |
Total combined fixed charges and preferred distributions |  | 44,539 |  | 47,844 |  | 50,337 |  | 50,117 |  | 56,478 |
Ratio of earnings to fixed charges (a) |  | 0.61 |  | 0.69 |  | 0.61 |  | 1.07 |  | 1.34 |

* Includes amounts reported in discontinued operations

(a) In fiscal 2010, 2011 and 2012, earnings were insufficient to cover combined fixed charges and preferred distributions. The Company must generate additional earnings of $17.6 million, $14.7 million and $19.5 million to achieve a fixed charge coverage ratio of 1:1 in fiscal 2010, 2011 and 2012, respectively.