EX-12.1 3 bdn-ex121_18.htm EX-12.1

Exhibit 12.1

Brandywine Realty Trust

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Share Distributions

(in thousands)

|  | For the years ended December 31, |
|  | 2016 |  |  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2012 |
Earnings before fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations before non-controlling interest and equity in income (loss) from unconsolidated real estate ventures |  | $ | 52,004 |  |  | $ | (29,929 | ) |  | $ | 6,814 |  |  | $ | 35,318 |  |  | $ | (40,050 | )
Distributed income of equity investees |  |  | 622 |  |  |  | 1,223 |  |  |  | 1,164 |  |  |  | 1,650 |  |  |  | 1,224 |
Amortization of capitalized interest |  |  | 4,899 |  |  |  | 4,277 |  |  |  | 3,840 |  |  |  | 3,557 |  |  |  | 3,538 |
Fixed charges - per below |  |  | 101,574 |  |  |  | 129,307 |  |  |  | 138,007 |  |  |  | 132,146 |  |  |  | 147,077 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capitalized interest |  |  | (12,835 | ) |  |  | (12,150 | ) |  |  | (6,803 | ) |  |  | (3,137 | ) |  |  | (2,560 | )
Earnings before fixed charges |  | $ | 146,264 |  |  | $ | 92,728 |  |  | $ | 143,022 |  |  | $ | 169,534 |  |  | $ | 109,229 |
Fixed charges and Preferred Distributions: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense from continuing operations (including amortization) |  | $ | 88,083 |  |  | $ | 116,511 |  |  | $ | 130,621 |  |  | $ | 127,585 |  |  | $ | 142,982 |
Capitalized interest |  |  | 12,835 |  |  |  | 12,150 |  |  |  | 6,803 |  |  |  | 3,137 |  |  |  | 2,560 |
Ground leases and other |  |  | 656 |  |  |  | 646 |  |  |  | 583 |  |  |  | 1,424 |  |  |  | 1,535 |
Total Fixed Charges |  |  | 101,574 |  |  |  | 129,307 |  |  |  | 138,007 |  |  |  | 132,146 |  |  |  | 147,077 |
Income allocated to preferred shareholders |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 10,405 |
Total Preferred Distributions |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 6,900 |  |  |  | 10,405 |
Total combined fixed charges and preferred distributions |  | $ | 108,474 |  |  | $ | 136,207 |  |  | $ | 144,907 |  |  | $ | 139,046 |  |  | $ | 157,482 |
Ratio of earnings to combined fixed charges and preferred distributions |  |  | 1.35 |  |  | (a) |  |  | (a) |  |  | 1.22 |  |  | (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 $43,479 for the year ended December 31, 2015, $1,885 for the year ended December 31, 2014 and $48,253 for the year ended December 31, 2012 to achieve a coverage ratio of 1:1.