Exhibit 12.1
STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS OF CUBESMART
CubeSmart
Computation of Ratio of Earnings to Combined
Charges and Preference Dividends
(dollars in thousands)
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| Year Ended December 31, |
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| 2009 |
| 2010 |
| 2011 |
| 2012 |
| 2013 |
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Earnings before fixed charges: |
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Add: |
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(Loss) income from continuing operations |
| $ | (25,370 | ) | $ | (17,443 | ) | $ | (13,400 | ) | $ | (13,276 | ) | $ | 10,409 |
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Fixed charges - per below |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 44,109 |
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Less: |
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Capitalized interest |
| (73 | ) | (132 | ) | (82 | ) | (185 | ) | (851 | ) | |||||
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Earnings before fixed charges |
| 22,388 |
| 26,964 |
| 33,144 |
| 30,868 |
| 53,667 |
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Fixed charges: |
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Interest expense (including amortization of premiums and discounts related to indebtedness) * |
| 47,608 |
| 44,257 |
| 46,394 |
| 43,994 |
| 43,108 |
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Early extinguishment of debt |
| — |
| — |
| — |
| — |
| — |
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Capitalized interest |
| 73 |
| 132 |
| 82 |
| 185 |
| 851 |
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Estimate of interest within rental expense |
| 150 |
| 150 |
| 150 |
| 150 |
| 150 |
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Total Fixed Charges |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 44,109 |
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Income allocated to preferred shareholders |
| — |
| — |
| 1,218 |
| 6,008 |
| 6,008 |
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Total combined fixed charges and preferred distributions |
| 47,831 |
| 44,539 |
| 47,844 |
| 50,337 |
| 50,117 |
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Ratio of earnings to fixed charges and preferred dividends (a) |
| 0.47 |
| 0.61 |
| 0.69 |
| 0.61 |
| 1.07 |
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* Includes amounts reported in discontinued operations
(a) In fiscal 2009, 2010, 2011 and 2012, earnings were insufficient to cover combined fixed charges and preferred distributions. CubeSmart must generate additional earnings of $25.4 million, $17.6 million, $14.7 million and $19.5 million to achieve a coverage ratio of 1:1 in fiscal 2009, 2010, 2011 and 2012, respectively.
