EX-12.1 5 copt12312017ex121.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,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
Earnings: |  |  |  |  |  |  |  |  |  |
Income (loss) before equity in income of unconsolidated entities and income taxes |  | $ | 64,659 |  |  | $ | (26,419 | ) |  | $ | 120,812 |  |  | $ | 34,590 |  |  | $ | 36,704 |
Gain on sales of real estate |  | 9,890 |  |  | 40,986 |  |  | 68,047 |  |  | 10,671 |  |  | 9,016 |
Combined fixed charges and preferred share dividends (from below) |  | 89,737 |  |  | 104,541 |  |  | 111,737 |  |  | 115,842 |  |  | 120,307 |
Amortization of capitalized interest |  | 2,631 |  |  | 2,715 |  |  | 2,591 |  |  | 2,374 |  |  | 1,977 |
Distributed income of equity investees |  | 1,496 |  |  | 732 |  |  | 361 |  |  | 225 |  |  | 1,857 |
Subtract: |  |  |  |  |  |  |  |  |  |
Capitalized interest (from below) |  | (5,229 | ) |  | (5,723 | ) |  | (7,151 | ) |  | (6,065 | ) |  | (8,785 | )
Preferred share dividends included in fixed charges |  | (6,219 | ) |  | (14,297 | ) |  | (14,210 | ) |  | (15,939 | ) |  | (19,971 | )
Preferred unit distributions included in fixed charges |  | (660 | ) |  | (660 | ) |  | (660 | ) |  | (660 | ) |  | (660 | )
Preferred distributions of other consolidated entities |  | (16 | ) |  | (16 | ) |  | (16 | ) |  | (16 | ) |  | (16 | )
Total earnings |  | $ | 156,289 |  |  | $ | 101,859 |  |  | $ | 281,511 |  |  | $ | 141,022 |  |  | $ | 140,429 |
Combined Fixed Charges and Preferred Share Dividends: |  |  |  |  |  |  |  |  |  |
Combined fixed charges and preferred share dividends: |  |  |  |  |  |  |  |  |  |
Interest expense on continuing operations |  | $ | 76,983 |  |  | $ | 83,163 |  |  | $ | 89,074 |  |  | $ | 92,393 |  |  | $ | 82,010 |
Interest expense on discontinued operations |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,221 |
Capitalized interest (internal and external) |  | 5,229 |  |  | 5,723 |  |  | 7,151 |  |  | 6,065 |  |  | 8,785 |
Amortization of debt issuance costs-capitalized |  | — |  |  | — |  |  | 8 |  |  | 186 |  |  | 144 |
Interest included in rental expense |  | 630 |  |  | 682 |  |  | 618 |  |  | 583 |  |  | 500 |
Preferred share dividends |  | 6,219 |  |  | 14,297 |  |  | 14,210 |  |  | 15,939 |  |  | 19,971 |
Preferred unit distributions |  | 660 |  |  | 660 |  |  | 660 |  |  | 660 |  |  | 660 |
Preferred distributions of other consolidated entities |  | 16 |  |  | 16 |  |  | 16 |  |  | 16 |  |  | 16 |
Total combined fixed charges and preferred share dividends |  | $ | 89,737 |  |  | $ | 104,541 |  |  | $ | 111,737 |  |  | $ | 115,842 |  |  | $ | 120,307 |
Ratio of earnings to combined fixed charges and preferred share dividends |  | 1.74 |  |  | 0.97 |  |  | 2.52 |  |  | 1.22 |  |  | 1.17 |
Deficiency |  |  |  |  | $ | 2,682 |  |  |  |  |  |  |  |  |  |

For purposes of calculating the above ratios, earnings were computed by adding fixed charges (excluding capitalized interest), gain on sales of real estate (excluding discontinued operations), amortization of capitalized interest and distributed income of equity investees to income before noncontrolling interests, equity in income of unconsolidated entities and income taxes. Fixed charges consist of interest costs and capitalized amortization of debt issuance costs.