Exhibit 12
W. P. CAREY INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For purposes of calculating the ratio of earnings to fixed charges, the term “earnings” is the amount resulting from adding (i) income from continuing operations before income taxes and adjustment for net income attributable to noncontrolling interests, (ii) fixed charges, (iii) distributed income of equity investments, and (iv) amortization of capitalized interest, reduced by (i) equity in earnings of equity method investments and (ii) net income attributable to noncontrolling interests that have not incurred fixed charges. “Fixed charges” consist of (i) interest expensed and capitalized, (ii) amortized premiums, discounts, and capitalized expenses related to indebtedness, and (iii) an estimate of the interest within rental expense.
The following table sets forth information regarding our ratio of earnings to fixed charges for the periods shown.
(Dollars in thousands)
Six Months Ended June 30, | Years Ended December 31, | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
Income from continuing operations before income taxes | $ | 106,343 | $ | 222,848 | $ | 230,360 | $ | 95,237 | $ | 94,286 | 190,255 | ||||||||||||
Fixed charges | 96,278 | 196,991 | 180,689 | 110,179 | 52,193 | 23,625 | |||||||||||||||||
Less: Equity in earnings of equity method investments | (31,440 | ) | (51,020 | ) | (44,116 | ) | (52,731 | ) | (62,392 | ) | (51,228 | ) | |||||||||||
Distributed income of equity investments | 32,365 | 51,435 | 42,809 | 42,554 | 45,121 | 51,538 | |||||||||||||||||
Amortization of capitalized interest | 6 | — | — | — | — | — | |||||||||||||||||
Net income attributable to noncontrolling interests that have not incurred fixed charges | (3,821 | ) | (6,235 | ) | (4,619 | ) | (3,847 | ) | (1,319 | ) | (2,735 | ) | |||||||||||
Earnings | $ | 199,731 | $ | 414,019 | $ | 405,123 | $ | 191,392 | $ | 127,889 | $ | 211,455 | |||||||||||
Interest expense | $ | 95,147 | $ | 194,326 | $ | 178,462 | $ | 108,193 | $ | 50,709 | $ | 22,366 | |||||||||||
Capitalized interest | — | 329 | 163 | — | — | — | |||||||||||||||||
1/3 of rental expense - interest factor | 1,131 | 2,336 | 2,064 | 1,986 | 1,484 | 1,259 | |||||||||||||||||
Fixed Charges | $ | 96,278 | $ | 196,991 | $ | 180,689 | $ | 110,179 | $ | 52,193 | $ | 23,625 | |||||||||||
Ratio of Earnings to Fixed Charges | 2.07 | 2.10 | 2.24 | 1.74 | 2.45 | 8.95 |
__________
(a) | Includes adjustments to correct amounts previously reported, related primarily to the inclusion of distributed income of equity investments. The corrections resulted in increases/(decreases) to the Ratio of Earnings to Fixed Charges of 0.20, 0.14, (0.14), (0.02), and 1.31 for the years ended December 31, 2015, 2014, 2013, 2012, and 2011, respectively. |