Exhibit 12
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:
Three Months Ended December 31, | Year Ended December 31, | |||||||||||||||||||||||
2015 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
Income (loss) from continuing operations | $ | 62,095 | $ | 89,187 | $ | 5,070 | $ | (193 | ) | $ | 7,768 | $ | (14,389 | ) | ||||||||||
Additions: | ||||||||||||||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | 15,012 | 59,546 | 59,785 | 63,573 | 60,627 | 61,402 | ||||||||||||||||||
Capitalized interest | 103 | 658 | 2,142 | 1,236 | 1,688 | 738 | ||||||||||||||||||
15,115 | 60,204 | 61,927 | 64,809 | 62,315 | 62,140 | |||||||||||||||||||
Deductions: | ||||||||||||||||||||||||
Capitalized interest | (103 | ) | (658 | ) | (2,142 | ) | (1,236 | ) | (1,688 | ) | (738 | ) | ||||||||||||
Net loss (income) attributable to noncontrolling interests | 38 | 553 | 38 | — | — | (494 | ) | |||||||||||||||||
Adjusted earnings | $ | 77,145 | $ | 149,286 | $ | 64,893 | $ | 63,380 | $ | 68,395 | $ | 46,519 | ||||||||||||
Fixed charges (from above) | $ | 15,115 | $ | 60,204 | $ | 61,927 | $ | 64,809 | $ | 62,315 | $ | 62,140 | ||||||||||||
Ratio of earnings to fixed charges | 5.10 | (1) | 2.48 | (1) | 1.05 | 0.98 | (2) | 1.10 | 0.75 | (3) |
(1) The earnings to fixed charges ratio for the three and twelve months ended December 31, 2015 includes gains on sale of real estate of $59.4 million and $91.1 million, respectively, classified as continuing operations. Prior to our adoption of Accounting Standards Update 2014-08 effective January1, 2014, gains from the sale of real estate were classified as discontinued operations.
(2) Due to the loss from continuing operations, the ratio was less than 1:1. Washington REIT must generate additional earnings of $1,429 to achieve a ratio of 1:1.
(3) Due to the loss from continuing operations, the ratio was less than 1:1. Washington REIT must generate additional earnings of $15,621 to achieve a ratio of 1:1.