Safehold 10-K 2012 FY Annual report

Exhibit 12.1

Computation of Ratio of Earnings to Fixed Charges and Earnings to Fixed Charges and Preferred Dividends

($ in thousands, except ratios)

	For the Years Ended December 31,
	2012			2011			2010			2009			2008
Earnings:
Pre-tax income from continuing operations before earnings from equity method investments and other items (1)	$	(407,258	)	$	(153,762	)	$	(250,537	)	$	(793,786	)	$	(322,646	)
Add: Fixed charges as calculated below	359,845			348,664			349,041			485,624			671,304
Add: Distributions of earnings from equity method investments	105,586			85,766			32,650			36,766			48,196
Less: Capitalized interest	(1,794		)	(788		)	(466		)	(263		)	(2,501		)
Total earnings	$	56,379		$	279,880		$	130,688		$	(271,659	)	$	394,353
Fixed charges:
Interest expense (2)	$	356,161		$	345,914		$	346,500		$	481,116		$	666,706
Add: Capitalized interest	1,794			788			466			263			2,501
Implied interest component on the company's rent obligations	1,889			1,962			2,075			4,245			2,097
Fixed charges	$	359,844		$	348,664		$	349,041		$	485,624		$	671,304
Preferred dividends	42,320			42,320			42,320			42,320			42,320
Fixed charges and preferred dividends	$	402,164		$	390,984		$	391,361		$	527,944		$	713,624
Earnings to fixed charges (3)	—			—			—			—			—
Earnings to fixed charges and preferred dividends (3)	—			—			—			—			—

Explanatory Notes:

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(1) Prior period presentation has been restated to conform to current period presentation.

(2) For the years ended December 31, 2012, 2011, 2010, 2009 and 2008, interest expense includes $1,064, $3,728, $32,734, $69,227 and $51,173, respectively, of interest expense reclassified to discontinued operations.

(3) For the years ended December 31, 2012, 2011, 2010, 2009, and 2008 earnings were not sufficient to cover fixed charges by $303,465, $68,784, $218,353, $757,283 and $276,951, respectively, and earnings were not sufficient to cover fixed charges and preferred dividends by $345,785, $111,104, $260,673, $799,603 and $319,271, respectively.