EX-12.2 14 cube-20161231ex122a1ef70.htm EX-12.2 cube_EX_12-2

Exhibit 12.2

 

CubeSmart L.P.

Computation of Ratio of Earnings to Fixed Charges

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,

 

 

    

2012

    

2013

    

2014

    

2015

    

2016

 

Earnings before fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income from continuing operations

 

$
(13,276)

 

$
10,409

 

$
26,366

 

$
78,756

 

$
88,376

 

Fixed charges - per below

 

 
44,329

 

 
44,109

 

 
50,470

 

 
48,760

 

 
57,689

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

 
(185)

 

 
(851)

 

 
(1,328)

 

 
(2,550)

 

 
(4,563)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before fixed charges

 

 
30,868

 

 
53,667

 

 
75,508

 

 
124,966

 

 
141,502

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (including amortization of premiums and discounts related to indebtedness) *

 

 
43,994

 

 
43,108

 

 
48,992

 

 
46,060

 

 
52,976

 

Capitalized interest

 

 
185

 

 
851

 

 
1,328

 

 
2,550

 

 
4,563

 

Estimate of interest within rental expense

 

 
150

 

 
150

 

 
150

 

 
150

 

 
150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Fixed Charges

 

 
44,329

 

 
44,109

 

 
50,470

 

 
48,760

 

 
57,689

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income allocated to preferred shareholders

 

 
6,008

 

 
6,008

 

 
6,008

 

 
6,008

 

 
5,045

 

Total combined fixed charges and preferred distributions

 

 
50,337

 

 
50,117

 

 
56,478

 

 
54,768

 

 
62,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges (a)

 

 
0.61

 

 
1.07

 

 
1.34

 

 
2.28

 

 
2.26

 

 

*  Includes amounts reported in discontinued operations

 

(a)

In fiscal 2012, earnings were insufficient to cover combined fixed charges and preferred distributions.  The Company must generate additional earnings of $19.5 million to achieve a fixed charge coverage ratio of 1:1 in fiscal 2012.