Exhibit 12.2
STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES OF CUBESMART, L.P.
CubeSmart, L.P.
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
| Six Months |
| ||||||
|
| Year Ended December 31, |
| Ended June 30, |
| ||||||||||||||
|
| 2006 |
| 2007 |
| 2008 |
| 2009 |
| 2010 |
| 2011 |
| ||||||
Earnings before fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
(Loss) income from continuing operations |
| $ | (19,746 | ) | $ | (26,737 | ) | $ | (25,837 | ) | $ | (19,302 | ) | $ | (9,851 | ) | $ | 169 |
|
Fixed charges - per below |
| 49,695 |
| 56,192 |
| 54,192 |
| 47,831 |
| 44,539 |
| 21,341 |
| ||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Capitalized interest |
| (35 | ) | (108 | ) | (99 | ) | (73 | ) | (132 | ) | (31 | ) | ||||||
Noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges |
| — |
| — |
| — |
| (673 | ) | (1,783 | ) | (1,254 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Earnings before fixed charges |
| 29,914 |
| 29,347 |
| 28,256 |
| 27,783 |
| 32,773 |
| 20,225 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest expense (including amortization premiums and discounts related to indebtedness) |
| 47,600 |
| 55,880 |
| 53,943 |
| 47,608 |
| 44,257 |
| 21,249 |
| ||||||
Early extinguishment of debt |
| 1,907 |
| — |
| — |
| — |
| — |
| — |
| ||||||
Capitalized interest |
| 35 |
| 108 |
| 99 |
| 73 |
| 132 |
| 31 |
| ||||||
Estimate of interest within rental expense |
| 153 |
| 204 |
| 150 |
| 150 |
| 150 |
| 61 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Total Fixed Charges |
| 49,695 |
| 56,192 |
| 54,192 |
| 47,831 |
| 44,539 |
| 21,341 |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Ratio of earnings to fixed charges (a) |
| 0.60 |
| 0.52 |
| 0.52 |
| 0.58 |
| 0.74 |
| 0.95 |
| ||||||
(a) Due to our losses in fiscal 2006, 2007, 2008, 2009, 2010 and six months ended June 30, 2011 the coverage ratio was less than 1:1. The Company must generate additional earnings of $19.8 million, $26.9 million, $25.9 million, $20.0 million, $11.8 million and $1.1 million to achieve a coverage of 1:1 in fiscal 2006, 2007, 2008, 2009 and 2010, and six months ended June 30, 2011, repectively.
