Gladstone Commercial (GOOD) 10-Q 2013 Q1 Quarterly report

Exhibit 12

Statements re: computation of ratios

(Dollars in Thousands, Except Ratios)

	For the three months ended March 31, 2013			For the year ended December 31, (Dollars in Thousands, Except Per Share Amounts)
	2013			2012			2011			2010			2009			2008
Net income from continuing operations	$	433		$	3,761		$	5,714		$	4,928		$	4,400		$	4,873
Add: fixed charges and preferred and senior common distributions		7,427			26,962			21,247			21,191			22,001			20,964
Less: preferred and senior common distributions		(1,076	)		(4,206	)		(4,156	)		(4,114	)		(4,094	)		(4,094	)
Earnings	$	6,784		$	26,517		$	22,805		$	22,005		$	22,307		$	21,743
Fixed charges and preferred and senior common distributions:
Interest expense(1)		5,942			21,239			16,158			16,031			16,399			15,575
Amortization of deferred financing fees		405			1,502			918			1,031			1,496			1,284
Estimated interest component of rent		4			15			15			15			12			11
Preferred and senior common distributions		1,076			4,206			4,156			4,114			4,094			4,094
Total fixed charges and preferred and senior common distributions	$	7,427		$	26,962		$	21,247		$	21,191		$	22,001		$	20,964
Ratio of earnings to combined fixed charges and preferred distributions		0.9	(2)		1.0	(3)		1.1			1.0			1.0			1.0

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

⁽²⁾ Note for the three months ended March 31, 2013, earnings, as defined, were insufficent to cover fixed charges by $643.

⁽³⁾ Note for the year ended December 31, 2012, earnings, as defined, were insufficent to cover fixed charges by $445.

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.