GLADSTONE COMMERCIAL CORP - FORM 10-Q - EX-12 - April 27, 2016

Attached files

file filename
EX-32.2 - EX-32.2 - GLADSTONE COMMERCIAL CORPd140882dex322.htm
EX-32.1 - EX-32.1 - GLADSTONE COMMERCIAL CORPd140882dex321.htm
EX-31.1 - EX-31.1 - GLADSTONE COMMERCIAL CORPd140882dex311.htm
10-Q - FORM 10-Q - GLADSTONE COMMERCIAL CORPd140882d10q.htm
EX-31.2 - EX-31.2 - GLADSTONE COMMERCIAL CORPd140882dex312.htm

Exhibit 12

Statements re: computation of ratio of earnings to combined fixed charges and preferred

distributions

(Dollars in Thousands)

 

    For the three
months ended
March 31,		     For the year ended December 31,  
    2016     2015     2014     2013     2012     2011  

Net income (loss) from continuing operations

   $ 853      $ 3,596      $ (5,902 )(1)    $ 1,527      $ 3,761      $ 5,714   

Add: fixed charges and preferred and senior common distributions

     8,700        35,871        33,592        31,506        26,962        21,247   

Less: preferred and senior common distributions

     (1,279 )      (5,101 )      (4,636 )      (4,394 )      (4,206 )      (4,156 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

   $ 8,274      $ 34,366      $ 23,054      $ 28,639      $ 26,517      $ 22,805   

Fixed charges and preferred and senior common distributions:

            

Interest expense (2)

     6,946        28,802        27,284        25,314        21,239        16,158   

Amortization of deferred financing fees

     471        1,955        1,656        1,780        1,502        918   

Estimated interest component of rent

     4        13        16        18        15        15   

Preferred and senior common distributions

     1,279        5,101        4,636        4,394        4,206        4,156   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred and senior common distributions

   $ 8,700      $ 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 three months ended March 31, 2016, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $426.
(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 three months ended March 31, 2016.

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