Spirit Realty Capital 10-Q 2006 Q3 Quarterly report

Exhibit 12.1

SPIRIT FINANCE CORPORATION
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

	Nine Months									Date of Inception (August 14, 2003)
	Ended			Years Ended December 31,						to December 31,
(Dollars in thousands)	9/30/2006			2005			2004			2003 (1)
Earnings: (2)
Income from continuing operations:
Net income (loss)	$	36,406		$	27,819		$	8,972		$	(1,158	)
Less: Discontinued operations	(6,864		)	(3,128		)	(589		)	—
Income (loss) from continuing operations	29,542			24,691			8,383			(1,158		)
Interest expense from continuing operations (3)	59,214			25,852			4,959			53
Total earnings (loss) (a)	$	88,756		$	50,543		$	13,342		$	(1,105	)
Fixed Charges: (2)
Interest expense from continuing operations (3) (b)	$	59,214		$	25,852		$	4,959		$	53
Ratio of earnings to fixed charges (a/b)	1.5x			2.0x			2.7x			—

(1)Earnings were insufficient to meet fixed charges by approximately $1.2 million for the period from inception on August 14, 2003 to December 31, 2003.  For the period ended December 31, 2003, our operations consisted primarily of start-up and organization activities.

(2)Periodically, Spirit Finance may sell real estate properties.  SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets,” requires that gains and losses from any such dispositions of properties and all operations from these properties be reclassified as “discontinued operations” in the Consolidated Statements of Operations.  As a result of this reporting requirement, each time a property is sold, the operations of such property previously reported as part of “income from continuing operations” are reclassified into discontinued operations.

(3)Interest expense from continuing operations includes interest expense on all indebtedness, including amortization of deferred financing costs, debt insurer premiums and the amortization of interest rate swap settlement costs, and the portion of the Company’s operating lease rental expense that management considers to be representative of interest.