Elme Communities (ELME) 10-Q 2014 Q2 Quarterly report

Exhibit 12

WASHINGTON REAL ESTATE INVESTMENT TRUST

Computation of Ratios

(In thousands)

Earnings to fixed charges ratio:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Income (loss) from continuing operations	$	1,368		$	1,538		$	(897	)	$	2,395
Additions:
Fixed charges
Interest expense	14,985			15,824			29,515			32,014
Capitalized interest	461			190			854			483
	15,446			16,014			30,369			32,497
Deductions:
Capitalized interest	(461		)	(190		)	(854		)	(483		)
Net loss attributable to noncontrolling interests	7			—			7			—
Adjusted earnings	16,360			17,362			28,625			34,409
Fixed charges (from above)	$	15,446		$	16,014		$	30,369		$	32,497
Ratio of earnings to fixed charges (1)	1.06			1.08			0.94			1.06

⁽¹⁾ Due to Washington REIT's loss from continuing operations during the 2014 Period, the earnings to fixed charges ratio was less than 1:1. Washington REIT must generate additional earnings of $1.7 million in the 2014 Period to achieve a ratio of 1:1.

Debt service coverage ratio:

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
Net income attributable to the controlling interests	$	1,087		$	5,263	105,641			$	12,598
Additions:
Interest expense (1)	14,985			16,152		29,515			32,670
Real estate depreciation and amortization (1)	24,401			25,582		47,154			51,106
Income tax expense	71			24		71			24
Non-real estate depreciation	180			215		373			411
	39,637			41,973		77,113			84,211
Deductions:
Gain on sale of real estate (1)	(282		)	—		(106,555		)	(3,195		)
Adjusted EBITDA	40,442			47,236		76,199			93,614
Debt service
Interest expense	14,985			16,152		29,515			32,670
Principal amortization	965			811		1,795			1,643
	$	15,950		$	16,963	$	31,310		$	34,313
Debt service coverage ratio	2.54			2.78		2.43			2.73
(1) Includes discontinued operations