EX-12 2 q42015exhibit12-ratios.htm EXHIBIT 12
Exhibit 12
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:

| Three Months Ended December 31, |  | Year Ended December 31, |
| 2015 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |
Income (loss) from continuing operations | $ | 62,095 |  |  | $ | 89,187 |  |  | $ | 5,070 |  |  | $ | (193 | ) |  | $ | 7,768 |  |  | $ | (14,389 | ) |
Additions: |  |  |  |  |  |  |  |  |  |  |  |
Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense | 15,012 |  |  | 59,546 |  |  | 59,785 |  |  | 63,573 |  |  | 60,627 |  |  | 61,402 |  |
Capitalized interest | 103 |  |  | 658 |  |  | 2,142 |  |  | 1,236 |  |  | 1,688 |  |  | 738 |  |
| 15,115 |  |  | 60,204 |  |  | 61,927 |  |  | 64,809 |  |  | 62,315 |  |  | 62,140 |  |
Deductions: |  |  |  |  |  |  |  |  |  |  |  |
Capitalized interest | (103 | ) |  | (658 | ) |  | (2,142 | ) |  | (1,236 | ) |  | (1,688 | ) |  | (738 | ) |
Net loss (income) attributable to noncontrolling interests | 38 |  |  | 553 |  |  | 38 |  |  | — |  |  | — |  |  | (494 | ) |
Adjusted earnings | $ | 77,145 |  |  | $ | 149,286 |  |  | $ | 64,893 |  |  | $ | 63,380 |  |  | $ | 68,395 |  |  | $ | 46,519 |  |
Fixed charges (from above) | $ | 15,115 |  |  | $ | 60,204 |  |  | $ | 61,927 |  |  | $ | 64,809 |  |  | $ | 62,315 |  |  | $ | 62,140 |  |
Ratio of earnings to fixed charges | 5.10 |  | (1) | 2.48 |  | (1) | 1.05 |  |  | 0.98 |  | (2) | 1.10 |  |  | 0.75 |  | (3)

(1) The earnings to fixed charges ratio for the three and twelve months ended December 31, 2015 includes gains on sale of real estate of $59.4 million and $91.1 million, respectively, classified as continuing operations. Prior to our adoption of Accounting Standards Update 2014-08 effective January1, 2014, gains from the sale of real estate were classified as discontinued operations.
(2) Due to the loss from continuing operations, the ratio was less than 1:1. Washington REIT must generate additional earnings of $1,429 to achieve a ratio of 1:1.
(3) Due to the loss from continuing operations, the ratio was less than 1:1. Washington REIT must generate additional earnings of $15,621 to achieve a ratio of 1:1.