EX-12.1 2 bdn-06302014xex121.htm EXHIBIT 12.1
Exhibit 12.1

Brandywine Realty Trust |
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Share Distributions |
(in thousands) |
|  | Six months ended June 30, |  |  | For the years ended December 31, |
|  | 2014 |  |  | 2013 |  | 2012 |  | 2011 |  | 2010 |  | 2009 |
Earnings before fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before non-controlling interest and equity in earnings from unconsolidated real estate ventures |  | $ | (745 | ) |  |  | $ | 35,318 |  |  | $ | (40,050 | ) |  | $ | (28,331 | ) |  | $ | (48,305 | ) |  | $ | (12,985 | ) |
Distributed income of equity investees |  | — |  |  |  | 1,650 |  |  | 1,224 |  |  | 2,600 |  |  | 657 |  |  | 1,557 |  |
Amortization of capitalized interest |  | 1,859 |  |  |  | 3,557 |  |  | 3,538 |  |  | 3,564 |  |  | 3,527 |  |  | 3,166 |  |
Fixed charges - per below |  | 69,352 |  |  |  | 132,146 |  |  | 147,077 |  |  | 140,356 |  |  | 148,500 |  |  | 153,042 |  |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capitalized interest |  | (2,726 | ) |  |  | (3,137 | ) |  | (2,560 | ) |  | (1,997 | ) |  | (10,385 | ) |  | (8,893 | ) |
Earnings before fixed charges |  | $ | 67,740 |  |  |  | $ | 169,534 |  |  | $ | 109,229 |  |  | $ | 116,192 |  |  | $ | 93,994 |  |  | $ | 135,887 |  |
Fixed charges and Preferred Distributions: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense from continuing operations (including amortization) |  | $ | 66,330 |  |  |  | $ | 127,585 |  |  | $ | 142,982 |  |  | $ | 136,396 |  |  | $ | 136,410 |  |  | $ | 142,520 |  |
Capitalized interest |  | 2,726 |  |  |  | 3,137 |  |  | 2,560 |  |  | 1,997 |  |  | 10,385 |  |  | 8,893 |  |
Ground leases and other |  | 296 |  |  |  | 1,424 |  |  | 1,535 |  |  | 1,963 |  |  | 1,705 |  |  | 1,629 |  |
Total Fixed Charges |  | 69,352 |  |  |  | 132,146 |  |  | 147,077 |  |  | 140,356 |  |  | 148,500 |  |  | 153,042 |  |
Income allocated to preferred shareholders |  | 3,450 |  |  |  | 6,900 |  |  | 10,405 |  |  | 7,992 |  |  | 7,992 |  |  | 7,992 |  |
Total Preferred Distributions |  | 3,450 |  |  |  | 6,900 |  |  | 10,405 |  |  | 7,992 |  |  | 7,992 |  |  | 7,992 |  |
Total combined fixed charges and preferred distributions |  | $ | 72,802 |  |  |  | $ | 139,046 |  |  | $ | 157,482 |  |  | $ | 148,348 |  |  | $ | 156,492 |  |  | $ | 161,034 |  |
Ratio of earnings to combined fixed charges and preferred distributions |  | (a) |  |  | 1.22 |  | (a) |  | (a) |  | (a) |  | (a) |
(a) Due to the registrant's loss in the period, the coverage ratio was less than 1:1. The registrant must generate additional earnings of $5,062 for the six months ended June 30, 2014, $48,253 for the year ended December 31, 2012, $32,156 for the year ended December 31, 2011, $62,498 for the year ended December 31, 2010, and $25,147 for the year ended December 31, 2009 to achieve a coverage ratio of 1:1.