EX-12.2 12 eqc123117exhibit122.htm EXHIBIT 12.2 Exhibit



Exhibit 12.2
EQUITY COMMONWEALTH
COMPUTATION OF RATIO OF EARNINGS TO COMBINED
FIXED CHARGES AND PREFERRED DISTRIBUTIONS
(dollars in thousands)

 
Year Ended December 31,
 
 
2017
 
2016
 
2015
 
2014
 
2013(1)
 
Earnings:
 

 
 

 
 

 
 

 
 

 
Income (loss) from continuing operations before income tax expense and equity in earnings of investees
30,166

 
$
233,639

 
$
102,221

 
$
(63
)
 
$
(62,034
)
 
Gains on equity transactions of investees
—

 
—

 
—

 
(17,020
)
 
—

 
Fixed charges before preferred distributions
52,183

 
84,329

 
107,316

 
143,838

 
174,753

 
Distributions from investees
—

 
—

 
—

 
20,680

 
24,079

 
Adjusted Earnings
$
82,349

 
$
317,968

 
$
209,537

 
$
147,435

 
$
136,798

 
 
 
 
 
 
 
 
 
 
 
 
Fixed Charges and Preferred Distributions:
 

 
 

 
 

 
 

 
 

 
Interest expense (including net amortization of debt discounts, premiums and deferred financing fees)
$
52,183

 
$
84,329

 
$
107,316

 
$
143,838

 
$
174,753

 
Preferred distributions
7,988

 
17,956

 
27,924

 
32,095

 
44,604

 
Combined Fixed Charges and Preferred Distributions
$
60,171

 
$
102,285

 
$
135,240

 
$
175,933

 
$
219,357

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Combined Fixed Charges and Preferred Distributions
1.4
x
 
3.1x

 
1.5x

 
0.8x

(2)
0.6x

(3)
 
 
 
 
 
 
 
 
 
 
 

(1)
Reclassifications have been made to the prior years' financial statements to conform to the current year's presentation.
(2)
The deficiency for this period was $28,498.
(3)
The deficiency for this period was $82,559.