Exhibit 12
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:
| Three Months Ended March 31, | ||||||||
| 2015 | 2014 | |||||||
| Income from continuing operations | $ | 29,398 | $ | (2,265 | ) | |||
| Additions: | ||||||||
| Fixed charges | ||||||||
| Interest expense | 15,348 | 14,530 | ||||||
| Capitalized interest | 339 | 393 | ||||||
| 15,687 | 14,923 | |||||||
| Deductions: | ||||||||
| Capitalized interest | (339 | ) | (393 | ) | ||||
| Net loss attributable to noncontrolling interests | 108 | — | ||||||
| Adjusted earnings | 44,854 | 12,265 | ||||||
| Fixed charges (from above) | $ | 15,687 | $ | 14,923 | ||||
| Ratio of earnings to fixed charges | 2.86 | 0.82 | (1) | |||||
1) Due to Washington REIT's loss from continuing operations during the 2014 Quarter, the earnings to fixed charges ratio was less than 1:1. Washington REIT must generate additional earnings of $2.7 million in the 2014 Quarter to achieve a ratio of 1:1.
Debt service coverage ratio:
| Three Months Ended March 31, | |||||||
| 2015 | 2014 | ||||||
| Net income attributable to the controlling interests | $ | 29,506 | $ | 104,554 | |||
| Additions: | |||||||
Interest expense (1) | 15,348 | 14,530 | |||||
Real estate depreciation and amortization (1) | 25,275 | 22,753 | |||||
| Non-real estate depreciation | 103 | 193 | |||||
| 40,726 | 37,476 | ||||||
| Deductions: | |||||||
Gain on sale of real estate (1) | (30,277 | ) | (106,273 | ) | |||
| Adjusted EBITDA | 39,955 | 35,757 | |||||
| Debt service | |||||||
| Interest expense | 15,348 | 14,530 | |||||
| Principal amortization | 1,155 | 830 | |||||
| $ | 16,503 | $ | 15,360 | ||||
| Debt service coverage ratio | 2.42 | 2.33 | |||||
(1) Includes discontinued operations | |||||||