EX-12.2 6 a2218525zex-12_2.htm EX-12.2

Exhibit 12.2

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

 
   Year Ended December 31,  
 
   2013   2012(1)   2011(1)   2010(1)   2009(1)  

Earnings:

                                

Income from continuing operations before income tax expense and equity in earnings of investees

   $ 52,745   $ 70,360   $ 42,214   $ 1,889   $ 39,359  

Gains on equity transactions of investees

     —     (7,246 )   (11,177 )   (34,808 )   —  

Fixed charges before preferred distributions

     174,753     204,244     195,024     183,433     173,458  

Distributions from investees

     24,079     16,816     16,617     16,119     4,975  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Adjusted Earnings

   $ 251,577   $ 284,174   $ 242,678   $ 166,633   $ 217,792  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Fixed Charges and Preferred Distributions:

                                

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

   $ 174,753   $ 204,244   $ 195,024   $ 183,433   $ 173,458  

Preferred distributions

     44,604     51,552     46,985     47,733     50,668  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Combined Fixed Charges and Preferred Distributions

   $ 219,357   $ 255,796   $ 242,009   $ 231,166   $ 224,126  
                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                       

Ratio of Earnings to Combined Fixed Charges and Preferred Distributions

     1.1x     1.1x     1.0x     0.7x (2)   1.0x (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 $64,533 and reflects a loss on asset impairment of $24,660 and acquisition related costs of $20,875.

(3)
The deficiency for this period was $6,334.