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iStar Financial
Computation of Ratio of Earnings to Fixed Charges and Earnings to Fixed Charges and Preferred Stock Dividends
| Nine Months Ended September 30, 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings: | |||||||||||||||||||||
Net income before equity in (loss) earnings from joint ventures and unconsolidated subsidiaries, minority interest and other items | $ | 258,473 | $ | 273,783 | $ | 189,341 | $ | 260,832 | $ | 183,118 | $ | 191,686 | |||||||||
Add: Fixed Charges | 312,967 | 314,865 | 233,877 | 195,823 | 186,109 | 171,703 | |||||||||||||||
Add: Distributions of earnings of joint ventures | 9,639 | 6,672 | 5,840 | 2,839 | 5,802 | 4,802 | |||||||||||||||
Subtract: Capitalized interest | (1,317 | ) | (788 | ) | — | — | (70 | ) | (1,010 | ) | |||||||||||
Subtract: Minority interest (expense) in pre-tax income of subsidiaries that have not incurred fixed charges | (1,275 | ) | (691 | ) | (225 | ) | — | — | — | ||||||||||||
Total earnings | $ | 578,487 | $ | 593,841 | $ | 428,833 | $ | 459,494 | $ | 374,959 | $ | 367,181 | |||||||||
Fixed charges: | |||||||||||||||||||||
Interest expense | $ | 310,146 | $ | 313,053 | $ | 232,918 | $ | 194,999 | $ | 185,361 | $ | 170,121 | |||||||||
Plus: Capitalized interest | 1,317 | 788 | — | — | 70 | 1,010 | |||||||||||||||
Implied interest component on the Company's rent obligations | 1,504 | 1,024 | 959 | 824 | 678 | 572 | |||||||||||||||
Fixed charges | $ | 312,967 | $ | 314,865 | $ | 233,877 | $ | 195,823 | $ | 186,109 | $ | 171,703 | |||||||||
Preferred dividend requirements | 31,740 | 42,320 | 51,340 | 36,908 | 36,908 | 36,908 | |||||||||||||||
Fixed charges and preferred stock dividends | $ | 344,707 | $ | 357,185 | $ | 285,217 | $ | 232,731 | $ | 223,017 | $ | 208,611 | |||||||||
Ratio of earnings to fixed charges and preferred stock dividends(1) | 1.7x | 1.7x | (2) | 1.5x | (3) | 2.0x | 1.7x | 1.8x | |||||||||||||
Ratio of earnings to fixed charges(1) | 1.8x | 1.9x | (2) | 1.8x | (3) | 2.3x | 2.0x | 2.1x |
- (1)
- For the purposes of calculating these ratios, "earnings" consist of income from continuing operations before adjustment for minority interest in consolidated subsidiaries, or income or loss from equity investees, income taxes and cumulative effect of change in accounting principle plus "fixed charges" and certain other adjustments. "Fixed charges" consist of interest incurred on all indebtedness related to continuing and discontinued operations (including amortization of original issue discount) and a reasonable approximation of the interest factor from our rent obligations in the periods presented.
- (2)
- Includes the effect of STARs asset-backed notes redemption charge of $44.3 million. Excluding this charge, the ratio of earnings to fixed charges and preferred stock dividends and the ratio of earnings to fixed charges would have been 1.8x and 2.0x respectively.
- (3)
- Includes the effect of chief executive officer, chief financial officer and ACRE Partners compensation charges of $106.9 million, 8.75% Senior Notes due 2008 redemption charge of $11.5 million and, for the ratio of earnings to fixed charges and preferred dividends, preferred stock redemption charge of $9.0 million. Excluding these charges, the ratio of earnings to fixed charges and preferred stock dividends and the ratio of earnings to fixed charges would have been 2.0x and 2.3x, respectively.
iStar Financial Computation of Ratio of Earnings to Fixed Charges and Earnings to Fixed Charges and Preferred Stock Dividends