Gladstone Commercial (GOOD) 10-Q 2012 Q2 Quarterly report

Exhibit 12

Statements re: computation of ratios

(Dollars in Thousands, Except Ratios)

				For the year ended December 31,
	For the six months ended June 30, 2012			2011			2010			2009			2008			2007
Net income from continuing operations	$	2,155		$	5,714		$	4,928		$	4,400		$	4,873		$	5,958
Add: fixed charges and preferred and senior common distributions		12,698			21,247			21,191			22,001			20,964			15,670
Less: preferred and senior common distributions		(2,088	)		(4,156	)		(4,114	)		(4,094	)		(4,094	)		(4,094	)
Earnings	$	12,765		$	22,805		$	22,005		$	22,307		$	21,743		$	17,534
Fixed charges and preferred and senior common distributions:
Interest expense(1)		9,899			16,158			16,031			16,399			15,575			10,847
Amortization of deferred financing fees		703			918			1,031			1,496			1,284			717
Estimated interest component of rent		8			15			15			12			11			12
Preferred and senior common distributions		2,088			4,156			4,114			4,094			4,094			4,094
Total fixed charges and preferred and senior common distributions	$	12,698		$	21,247		$	21,191		$	22,001		$	20,964		$	15,670
Ratio of earnings to combined fixed charges and preferred distributions		1.0			1.1			1.0			1.0			1.0			1.1

⁽¹⁾ Interest expense includes dividends paid on our mandatorily redeemable preferred stock.

The calculation of the ratio of earnings to combined fixed charges and preferred distributions is above. “Earnings” consist of net income from continuing operations before fixed charges. “Fixed charges” consist of interest expense, amortization of deferred financing fees and the portion of operating lease expense that represents interest. The portion of operating lease expense that represents interest is calculated by dividing the amount of rent expense, allocated to us by our Adviser as part of the administration fee payable under the Advisory Agreement, by three.