EX-12.1 2 stag-123115xex121.htm EXHIBIT 12.1 Exhibit


Exhibits 12.1
Statement of Computation of Ratios of Earnings to Fixed Charges and
Preferred Stock Dividends
(dollars in thousands)
 
 
STAG Industrial, Inc.
 
STAG Predecessor Group
 
 
Year ended
December 31, 2015
 
Year ended
December 31, 2014
 
Year ended
December 31, 2013
 
Year Ended December 31, 2012
 
Period
April 20, 2011
to
December 31, 2011
 
Period
January 1, 2011
to
April 19, 2011
Fixed Charges
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
36,098

 
$
25,109

 
$
20,319

 
$
16,269

 
$
12,289

 
$
4,136

Interest within rental expense
 
358

 
245

 
156

 
125

 
71

 
—

Fixed charges
 
$
36,456

 
$
25,354

 
$
20,475

 
$
16,394

 
$
12,360

 
$
4,136

Earnings
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) from continuing operations
 
(31,469
)
 
(5,039
)
 
106

 
(7,817
)
 
(10,510
)
 
(251
)
Fixed Charges
 
36,456

 
25,354

 
20,475

 
16,394

 
12,360

 
4,136

Earnings
 
$
4,987

 
$
20,315

 
$
20,581

 
$
8,577

 
$
1,850

 
$
3,885

Add:  Depreciation and amortization
 
112,545

 
88,057

 
67,556

 
42,427

 
21,325

 
2,345

Less:  Straight-line rent adjustments, net
 
(3,134
)
 
(3,347
)
 
(3,140
)
 
(2,710
)
 
(1,189
)
 
6

Add:  Deferred leasing intangibles amortization
 
8,526

 
6,253

 
5,798

 
4,718

 
2,774

 
(3
)
Add:  Loss on impairments
 
29,272

 
2,840

 
—

 
622

 
—

 
—

Add:  Non-cash compensation expense
 
7,578

 
7,314

 
2,970

 
1,936

 
693

 
—

Add:  Gain on interest rate swaps
 
—

 
—

 
—

 
(215
)
 
(2,179
)
 
(762
)
Adjusted Earnings
 
$
159,774

 
$
121,432

 
$
93,765

 
$
55,355

 
$
23,274

 
$
5,471

Preferred Dividends
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock dividends
 
$
10,848

 
$
10,848

 
$
9,495

 
$
6,210

 
$
1,018

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
 
0.14x

 
0.80x

 
1.01x

 
0.52x

 
0.15x

 
0.94x

Inadequate amount
 
$
(31,469
)
 
$
(5,039
)
 
—

 
$
(7,817
)
 
$
(10,510
)
 
$
(251
)
Ratio of earnings to combined fixed charges and preferred dividends
 
0.11x

 
0.56x

 
0.69x

 
0.38x

 
0.14x

 
0.94x

Inadequate amount
 
$
(42,317
)
 
$
(15,887
)
 
$
(9,389
)
 
$
(14,027
)
 
$
(11,528
)
 
$
(251
)
Ratio of Adjusted Earnings to Fixed Charges
 
4.38x

 
4.79x

 
4.58x

 
3.38x

 
1.88x

 
1.32x

Ratio of Adjusted Earnings to Combined Fixed Charges and Preferred Dividends
 
3.38x

 
3.35x

 
3.13x

 
2.45x

 
1.74x

 
1.32x

“Adjusted earnings” consist of earnings excluding depreciation and amortization, straight-line rent adjustments, deferred leasing intangibles amortization, amortization of non-cash compensation expense, loss on impairments and gain on interest rate swaps. Earnings, fixed charges and preferred stock dividends are calculated in the same manner as they are for the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred stock dividends as described above. We believe that the ratios of adjusted earnings to fixed charges and combined fixed charges and preferred stock dividends are useful supplemental information regarding our ability to cover our fixed charges and preferred stock dividends.