EX-12 2 ex12_93016.htm EXHIBIT 12
Exhibit 12
Statements re: computation of ratio of earnings to combined fixed charges and preferred
distributions
(Dollars in Thousands)

|  | For the nine months ended September 30, |  | For the year ended December 31,
|  | 2016 |  | 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011
Net (loss) income from continuing operations |  | $ | (3,385 | ) |  | $ | 3,596 |  |  | $ | (5,902 | ) | (1) | $ | 1,527 |  |  | $ | 3,761 |  |  | $ | 5,714 |
Add: fixed charges and preferred and senior common distributions |  | 26,211 |  |  | 35,871 |  |  | 33,592 |  |  | 31,506 |  |  | 26,962 |  |  | 21,247 |
Less: preferred and senior common distributions |  | (5,050 | ) |  | (5,101 | ) |  | (4,636 | ) |  | (4,394 | ) |  | (4,206 | ) |  | (4,156 | )
Earnings |  | $ | 17,776 |  |  | $ | 34,366 |  |  | $ | 23,054 |  |  | $ | 28,639 |  |  | $ | 26,517 |  |  | $ | 22,805 |
Fixed charges and preferred and senior common distributions: |  |  |  |  |  |  |  |  |  |  |  |
Interest expense (2) |  | 19,613 |  |  | 28,802 |  |  | 27,284 |  |  | 25,314 |  |  | 21,239 |  |  | 16,158 |
Amortization of deferred financing fees |  | 1,537 |  |  | 1,955 |  |  | 1,656 |  |  | 1,780 |  |  | 1,502 |  |  | 918 |
Estimated interest component of rent |  | 11 |  |  | 13 |  |  | 16 |  |  | 18 |  |  | 15 |  |  | 15 |
Preferred and senior common distributions |  | 5,050 |  |  | 5,101 |  |  | 4,636 |  |  | 4,394 |  |  | 4,206 |  |  | 4,156 |
Total fixed charges and preferred and senior common distributions |  | $ | 26,211 |  |  | $ | 35,871 |  |  | $ | 33,592 |  |  | $ | 31,506 |  |  | $ | 26,962 |  |  | $ | 21,247 |
Ratio of earnings to combined fixed charges and preferred distributions |  | N/A |  | (3) | N/A |  | (4) | N/A |  | (5) | N/A |  | (6) | N/A |  | (7) | 1.1 |

(1) | We recognized a $14.2 million impairment loss and a $5.3 million gain on debt extinguishment as a result of our Roseville, MN deed-in-lieu transaction during the year ended December 31, 2014.

(2) | Interest expense includes dividends paid on our mandatorily redeemable term preferred stock.

(3) | For the nine months ended September 30, 2016, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $8,435.

(4) | For the year ended December 31, 2015, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $1,505.

(5) | For the year ended December 31, 2014, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $10,538.

(6) | For the year ended December 31, 2013, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $2,867.

(7) | For the year ended December 31, 2012, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $445.

N/A: Not Applicable
The calculation of the ratio of earnings to combined fixed charges and preferred distributions is above. “Earnings” consist of net income from continuing operations and before fixed charges. “Fixed charges” consist of interest expense, amortization of deferred financing fees and the portion of operating lease expense that represents interest. The portion of operating lease expense that represents interest is calculated by dividing the amount of rent expense allocated to us by our Administrator as part of the administration fee payable under the Administration Agreement, by three, for the years ended December 31, 2011 to 2015 and for the nine months ended months ended September 30, 2016.