Exhibit 12.1
STATEMENT REGARDING COMPUTATION OF RATIO OF COMBINED FIXED CHARGES AND
PREFERRED DIVIDENDS TO EARNINGS
Sunstone Hotel Investors, Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(numbers in thousands, except ratio amounts)
Nine Months Ended September 30, 2010 | Nine Months Ended September 30, 2009 | Year Ended December 31, 2009 | Year Ended December 31, 2008 | Year Ended December 31, 2007 | Year Ended December 31, 2006 | Year Ended December 31, 2005 | ||||||||||||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||||||||||||
Earnings | ||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (35,686 | ) | $ | (7,795 | ) | $ | (43,184 | ) | $ | 29,067 | $ | 29,376 | $ | 9,117 | $ | 3,163 | |||||||||||
Equity in (earnings) losses of unconsolidated joint ventures | (475 | ) | 2,616 | 27,801 | 1,445 | 3,588 | (140 | ) | — | |||||||||||||||||||
Interest expense | 69,274 | 74,676 | 99,237 | 101,794 | 103,254 | 86,579 | 60,015 | |||||||||||||||||||||
Interest portion of rental expense | 2,533 | 2,540 | 3,389 | 3,400 | 3,410 | 3,951 | 3,191 | |||||||||||||||||||||
Total | $ | 35,646 | $ | 72,037 | $ | 87,243 | $ | 135,706 | $ | 139,628 | $ | 99,507 | $ | 66,369 | ||||||||||||||
Fixed Charges | ||||||||||||||||||||||||||||
Interest expense | $ | 69,274 | $ | 74,676 | $ | 99,237 | $ | 101,794 | $ | 103,254 | $ | 86,579 | $ | 60,015 | ||||||||||||||
Interest portion of rental expense | 2,533 | 2,540 | 3,389 | 3,400 | 3,410 | 3,951 | 3,191 | |||||||||||||||||||||
Preferred dividends | 15,515 | 15,562 | 20,749 | 20,884 | 20,795 | 19,616 | 10,973 | |||||||||||||||||||||
Total | $ | 87,322 | $ | 92,778 | $ | 123,375 | $ | 126,078 | $ | 127,459 | $ | 110,146 | $ | 74,179 | ||||||||||||||
Ratio | 0.41 | 0.78 | 0.71 | 1.08 | 1.10 | 0.90 | 0.89 | |||||||||||||||||||||
Deficiency | $ | (51,676 | ) | $ | (20,741 | ) | $ | (36,132 | ) | $ | — | $ | — | $ | (10,639 | ) | $ | (7,810 | ) | |||||||||