EX-12.1 2 a2207152zex-12_1.htm EX-12.1

Exhibit 12.1

Corporate Office Properties Trust

Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends

(Dollars in thousands)

|  | Years Ended December 31, |
|  | 2011 |  | 2010 |  | 2009 |  | 2008 |  | 2007 |
Earnings: |  |  |  |  |  |  |  |  |  |  |
(Loss) income from continuing operations before equity in (loss) income of unconsolidated entities and income taxes |  | $ | (123,044 | ) | $ | 35,352 |  | $ | 55,703 |  | $ | 54,299 |  | $ | 28,218 |
Gain on sales of real estate, excluding discontinued operations |  | 2,721 |  | 2,840 |  | — |  | 1,682 |  | 3,108 |
Combined fixed charges and preferred share dividends (from below) |  | 139,159 |  | 135,836 |  | 115,014 |  | 122,395 |  | 127,139 |
Amortization of capitalized interest |  | 1,610 |  | 1,363 |  | 1,105 |  | 890 |  | 695 |
Distributed loss of equity investees |  | (31 | ) | — |  | — |  | (203 | ) | (224 | )
Subtract: |  |  |  |  |  |  |  |  |  |  |
Capitalized interest (from below) |  | (17,400 | ) | (16,524 | ) | (15,461 | ) | (18,312 | ) | (19,964 | )
Preferred share dividends included in fixed charges |  | (16,102 | ) | (16,102 | ) | (16,102 | ) | (16,102 | ) | (16,068 | )
Preferred unit distributions included in fixed charges |  | (660 | ) | (660 | ) | (660 | ) | (660 | ) | (660 | )
Total (loss) earnings |  | $ | (13,747 | ) | $ | 142,105 |  | $ | 139,599 |  | $ | 143,989 |  | $ | 122,244 |
Combined fixed charges and preferred share dividends: |  |  |  |  |  |  |  |  |  |  |
Interest expense on continuing operations |  | $ | 101,281 |  | $ | 98,748 |  | $ | 79,789 |  | $ | 82,401 |  | $ | 85,076 |
Interest expense on discontinued operations |  | 3,020 |  | 3,380 |  | 2,631 |  | 4,520 |  | 4,944 |
Capitalized interest (internal and external) |  | 17,400 |  | 16,524 |  | 15,461 |  | 18,312 |  | 19,964 |
Amortization of debt issuance costs-capitalized |  | 183 |  | 19 |  | 30 |  | 32 |  | 138 |
Interest included in rental expense |  | 513 |  | 403 |  | 341 |  | 368 |  | 289 |
Preferred share dividends |  | 16,102 |  | 16,102 |  | 16,102 |  | 16,102 |  | 16,068 |
Preferred unit distributions |  | 660 |  | 660 |  | 660 |  | 660 |  | 660 |
Total combined fixed charges and preferred share dividends |  | $ | 139,159 |  | $ | 135,836 |  | $ | 115,014 |  | $ | 122,395 |  | $ | 127,139 |
Ratio of (loss) earnings to combined fixed charges and preferred share dividends |  | (0.10 | ) | 1.05 |  | 1.21 |  | 1.18 |  | 0.96 |
Deficiency |  | $ | 152,906 |  |  |  |  |  |  |  | $ | 4,895 |