EX-12 2 iretexhibit12-10312014.htm CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES AND EARNINGS TO COMBINED FIXED
Exhibit 12
CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED SHARE DISTRIBUTIONS
(In Thousands, Except Ratios; Unaudited)

|  | Six Months Ended | Fiscal Year Ended April 30,
|  | October 31, 2014 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010
Earnings |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations | $ | 5,671 | $ | (23,390) | $ | 20,677 | $ | 8,644 | $ | 4,679 | $ | 5,710
Add: |  |  |  |  |  |  |  |  |  |  |  |
| Combined fixed charges and preferred distributions (see below) |  | 37,252 |  | 73,933 |  | 73,657 |  | 68,172 |  | 64,954 |  | 71,497
| Amortization of capitalized interest |  | 29 |  | 0 |  | 0 |  | 0 |  | 0 |  | 0
Less: |  |  |  |  |  |  |  |  |  |  |  |  |
| (Income) loss noncontrolling interests – consolidated real estate entities |  | (747) |  | (910) |  | (809) |  | (135) |  | 180 |  | (22)
| Interest capitalized |  | (2,232) |  | (2,856) |  | (742) |  | (571) |  | (57) |  | (19)
| Preferred distributions |  | (5,757) |  | (11,514) |  | (9,229) |  | (2,372) |  | (2,372) |  | (2,372)
Total earnings | $ | 34,216 | $ | 35,263 | $ | 83,554 | $ | 73,738 | $ | 67,384 | $ | 74,794
Fixed charges |  |  |  |  |  |  |  |  |  |  |  |
| Interest expensed | $ | 29,263 | $ | 59,563 |  | 63,686 |  | 65,229 |  | 62,525 |  | 69,106
| Interest capitalized |  | 2,232 |  | 2,856 |  | 742 |  | 571 |  | 57 |  | 19
Total fixed charges | $ | 31,495 | $ | 62,419 | $ | 64,428 | $ | 65,800 | $ | 62,582 | $ | 69,125
| Preferred distributions |  | 5,757 |  | 11,514 |  | 9,229 |  | 2,372 |  | 2,372 |  | 2,372
Total combined fixed charges and preferred distributions | $ | 37,252 | $ | 73,933 | $ | 73,657 | $ | 68,172 | $ | 64,954 | $ | 71,497
Ratio of earnings to fixed charges |  | 1.09x |  | (2) |  | 1.30x |  | 1.12x |  | 1.08x |  | 1.08x
Ratio of earnings to combined fixed charges and preferred distributions |  | (1) |  | (2) |  | 1.13x |  | 1.08x |  | 1.04x |  | 1.05x

(1) | Due to non-cash asset impairment and loss on sale charges of $7.3 million, earnings were inadequate to cover combined fixed charges and preferred distributions by $3.0 million. Excluding the asset impairment and loss on sale charges, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.12 for the six months ended October 31, 2014.

(2) | Due to non-cash asset impairment charges of $42.6 million, earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $27.2 million and $38.7 million, respectively. Excluding the asset impairment charge, the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred distributions would have been 1.25 and 1.05, respectively, for the fiscal year ended April 30, 2014.