Kite Realty Group Trust (KRG) 10-Q 2011 Q1 Quarterly report

EXHIBIT 12.1

Kite Realty Group

Calculation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends

		Three Months ended March 31, 2011			Years ended December 31
					2010		2009		2008		2007		2006
Earnings:
Net (loss) income from continuing operations		$	(777,311)	$	(9,186,140)	$	4,939,365	$	10,183,056	$	13,876,074	$	11,601,854
Add:
	Income taxes expense (benefit)		(16,073)		265,986		(22,293)		1,927,830		761,628		965,532
	Fixed charges, net of capitalized interest		5,910,187		28,560,292		27,350,287		29,649,915		26,257,879		21,528,608
	Distributions and income from majority-owned unconsolidated entity		—		—		381,514		825,747		621,793		504,713
Less:
	Loss (income) from unconsolidated entities		87,625		51,964		(226,041)		(842,425)		(290,710)		(286,452)
Earnings before fixed charges and preferred dividends		$	5,204,428	$	19,692,102		32,422,832		41,744,123		41,226,664		34,314,255
Fixed charges:
	Interest expense	$	5,901,625	$	28,532,440	$	27,151,054	$	29,372,181	$	25,965,141	$	21,221,758
	Capitalized interest		2,142,262		8,807,062		8,892,218		10,061,770		12,824,398		10,680,000
	Interest within rental expense		8,562		27,852		20,056		16,690		16,673		16,673
	Fixed charges of unconsolidated entities		—		—		179,177		261,044		276,065		290,177
Total fixed charges			8,052,449		37,367,354	$	36,242,505	$	39,711,685	$	39,082,277	$	32,208,608
	Preferred dividends		1,443,750		376,979		—		—		—		—
Total fixed charges and preferred dividends		$	9,496,199	$	37,744,333	$	36,242,505	$	39,711,685	$	39,082,277	$	32,208,608
Ratio of earnings to fixed charges and preferred dividends			(1)		(2)		(3)		1.05		1.05		1.07

(1)   The ratio is less than 1.0; the amount of coverage deficiency for the three months ended March 31, 2011 was $4.3 million.  The calculation of earnings includes $9.2 million of non-cash depreciation expense.

(2)   The ratio is less than 1.0; the amount of coverage deficiency for the year ended December 31, 2010 was $18.1 million.  The calculation of earnings includes $40.7 million of non-cash depreciation expense.

(3)   The ratio is less than 1.0; the amount of coverage deficiency for the year ended December 31, 2009 was $3.8 million.  The calculation of earnings includes $32.1 million of non-cash depreciation expense.