EX-12.1 2 copt12312013ex121.htm EXHIBIT 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,
|  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009
Earnings: |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before equity in income (loss) of unconsolidated entities and income taxes |  | $ | 36,704 |  |  | $ | 8,894 |  |  | $ | (85,580 | ) |  | $ | 24,693 |  |  | $ | 47,924 |
Gain on sales of real estate, excluding discontinued operations |  | 9,016 |  |  | 21 |  |  | 2,732 |  |  | 2,840 |  |  | — |
Combined fixed charges and preferred share dividends (from below) |  | 120,307 |  |  | 133,345 |  |  | 139,159 |  |  | 135,836 |  |  | 115,014 |
Amortization of capitalized interest |  | 1,977 |  |  | 1,798 |  |  | 1,610 |  |  | 1,363 |  |  | 1,105 |
Distributed income (loss) of equity investees |  | 1,857 |  |  | — |  |  | (31 | ) |  | — |  |  | — |
Subtract: |  |  |  |  |  |  |  |  |  |
Capitalized interest (from below) |  | (8,785 | ) |  | (13,903 | ) |  | (17,400 | ) |  | (16,524 | ) |  | (15,461 | )
Preferred share dividends included in fixed charges |  | (19,971 | ) |  | (20,844 | ) |  | (16,102 | ) |  | (16,102 | ) |  | (16,102 | )
Preferred unit distributions included in fixed charges |  | (660 | ) |  | (660 | ) |  | (660 | ) |  | (660 | ) |  | (660 | )
Preferred distributions of other consolidated entities |  | (16 | ) |  | (16 | ) |  | — |  |  | — |  |  | — |
Total earnings |  | $ | 140,429 |  |  | $ | 108,635 |  |  | $ | 23,728 |  |  | $ | 131,446 |  |  | $ | 131,820 |
Combined Fixed Charges and Preferred Share Dividends: |  |  |  |  |  |  |  |  |  |
Combined fixed charges and preferred share dividends: |  |  |  |  |  |  |  |  |  |
Interest expense on continuing operations |  | $ | 82,010 |  |  | $ | 86,401 |  |  | $ | 90,037 |  |  | $ | 87,551 |  |  | $ | 68,540 |
Interest expense on discontinued operations |  | 8,221 |  |  | 10,397 |  |  | 14,264 |  |  | 14,577 |  |  | 13,880 |
Capitalized interest (internal and external) |  | 8,785 |  |  | 13,903 |  |  | 17,400 |  |  | 16,524 |  |  | 15,461 |
Amortization of debt issuance costs-capitalized |  | 144 |  |  | 649 |  |  | 183 |  |  | 19 |  |  | 30 |
Interest included in rental expense |  | 500 |  |  | 475 |  |  | 513 |  |  | 403 |  |  | 341 |
Preferred share dividends |  | 19,971 |  |  | 20,844 |  |  | 16,102 |  |  | 16,102 |  |  | 16,102 |
Preferred unit distributions |  | 660 |  |  | 660 |  |  | 660 |  |  | 660 |  |  | 660 |
Preferred distributions of other consolidated entities |  | 16 |  |  | 16 |  |  | — |  |  | — |  |  | — |
Total combined fixed charges and preferred share dividends |  | $ | 120,307 |  |  | $ | 133,345 |  |  | $ | 139,159 |  |  | $ | 135,836 |  |  | $ | 115,014 |
Ratio of earnings to combined fixed charges and preferred share dividends |  | 1.17 |  |  | 0.81 |  |  | 0.17 |  |  | 0.97 |  |  | 1.15 |
Deficiency |  |  |  | $ | 24,710 |  |  | $ | 115,431 |  |  | $ | 4,390 |  |  |