Exhibit 12
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:
| Q3 2011 | Q3 2010 | YTD 2011 | YTD 2010 | |||||||||||||
Income from continuing operations | $ | 2,707 | $ | 3,093 | $ | 9,257 | $ | 7,955 | ||||||||
Additions: | ||||||||||||||||
Fixed charges | ||||||||||||||||
Interest expense | 16,508 | 16,717 | 50,266 | 49,662 | ||||||||||||
Capitalized interest | 236 | 83 | 400 | 775 | ||||||||||||
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| 16,744 | 16,800 | 50,666 | 50,437 | |||||||||||||
Deductions: | ||||||||||||||||
Capitalized interest | (236 | ) | (83 | ) | (400 | ) | (775 | ) | ||||||||
Net income attributable to noncontrolling interests | (28 | ) | (33 | ) | (85 | ) | (109 | ) | ||||||||
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Adjusted earnings | $ | 19,187 | $ | 19,777 | $ | 59,438 | $ | 57,508 | ||||||||
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Fixed charges (from above) | $ | 16,744 | $ | 16,800 | $ | 50,666 | $ | 50,437 | ||||||||
Ratio of earnings to fixed charges | 1.14 | 1.18 | 1.17 | 1.14 | ||||||||||||
Debt service coverage ratio:
| Q3 2011 | Q3 2010 | YTD 2011 | YTD 2010 | |||||||||||||
Net income attributable to the controlling interests | $ | 63,008 | $ | 6,625 | $ | 74,195 | $ | 26,835 | ||||||||
Additions: | ||||||||||||||||
Interest expense | 16,739 | 17,100 | 50,962 | 51,178 | ||||||||||||
Real estate depreciation and amortization | 24,422 | 24,278 | 75,130 | 71,555 | ||||||||||||
Real estate impairment | — | — | 599 | — | ||||||||||||
Income tax expense | (35 | ) | — | 1,138 | — | |||||||||||
Non-real estate depreciation | 243 | 277 | 759 | 823 | ||||||||||||
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| 41,369 | 41,655 | 128,588 | 123,556 | |||||||||||||
Deductions: | ||||||||||||||||
Loss on extinguishment of debt | — | 238 | — | 280 | ||||||||||||
Gain on sale of real estate | (56,639 | ) | — | (56,639 | ) | (7,942 | ) | |||||||||
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Adjusted EBITDA | $ | 47,738 | $ | 48,518 | $ | 146,144 | $ | 142,729 | ||||||||
Debt service | ||||||||||||||||
Interest expense | $ | 16,739 | $ | 17,100 | $ | 50,962 | $ | 51,178 | ||||||||
Principal amortization | 1,142 | 1,042 | 3,189 | 3,187 | ||||||||||||
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| $ | 17,881 | $ | 18,142 | $ | 54,151 | $ | 54,365 | |||||||||
Debt service coverage ratio | 2.67 | 2.67 | 2.70 | 2.63 | ||||||||||||
