Exhibit 12.1
CubeSmart
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
| | 2007 | | 2008 | | 2009 | | 2010 | | 2011 | |
Earnings before fixed charges: | | | | | | | | | | | |
Add: | | | | | | | | | | | |
Loss from continuing operations | | $ | (28,051 | ) | $ | (27,634 | ) | $ | (21,291 | ) | $ | (11,996 | ) | $ | (5,052 | ) |
Fixed charges - per below | | 56,192 | | 54,192 | | 47,831 | | 44,539 | | 46,626 | |
Less: | | | | | | | | | | | |
Capitalized interest | | (108 | ) | (99 | ) | (73 | ) | (132 | ) | (82 | ) |
| | | | | | | | | | | |
Earnings before fixed charges | | 28,033 | | 26,459 | | 26,467 | | 32,411 | | 41,492 | |
| | | | | | | | | | | |
Fixed charges: | | | | | | | | | | | |
Interest expense (including amortization premiums and discounts related to indebtedness) | | 55,880 | | 53,943 | | 47,608 | | 44,257 | | 46,394 | |
Early extinguishment of debt | | — | | — | | — | | — | | — | |
Capitalized interest | | 108 | | 99 | | 73 | | 132 | | 82 | |
Estimate of interest within rental expense | | 204 | | 150 | | 150 | | 150 | | 150 | |
| | | | | | | | | | | |
Total Fixed Charges | | 56,192 | | 54,192 | | 47,831 | | 44,539 | | 46,626 | |
| | | | | | | | | | | |
Income allocated to preferred shareholders | | — | | — | | — | | — | | 1,218 | |
Total combined fixed charges and preferred distributions | | 56,192 | | 54,192 | | 47,831 | | 44,539 | | 47,844 | |
| | | | | | | | | | | |
Ratio of earnings to fixed charges (a) | | 0.50 | | 0.49 | | 0.55 | | 0.73 | | 0.87 | |
| | | | | | | | | | | | | | | | |
(a) Due to our losses in fiscal 2007, 2008, 2009, 2010 and 2011 the coverage ratio was less than 1:1. The Parent Company must generate additional earnings of $28.2 million, $27.7 million, $21.4 million, $12.1 million, and $6.4 million to achieve a coverage of 1:1 in fiscal 2007, 2008, 2009, 2010 and 2011, repectively.
