Exhibit 12.1
CubeSmart
Computation of Ratio of Earnings to Fixed Charges
(dollars in thousands)
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| Year Ended December 31, |
| Six Months Ended June 30, |
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| 2008 |
| 2009 |
| 2010 |
| 2011 |
| 2012 |
| 2012 |
| 2013 |
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Earnings before fixed charges: |
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Add: |
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(Loss) income from continuing operations |
| $ | (31,166) |
| $ | (23,938) |
| $ | (15,000) |
| $ | (8,614) |
| $ | (8,296) |
| $ | (8,140) |
| $ | 1,736 |
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Fixed charges - per below |
| 54,192 |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 20,624 |
| 22,292 |
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Less: |
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Capitalized interest |
| (99) |
| (73) |
| (132) |
| (82) |
| (185) |
| (62) |
| (194) |
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Earnings before fixed charges |
| 22,927 |
| 23,820 |
| 29,407 |
| 37,930 |
| 35,848 |
| 12,422 |
| 23,834 |
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Fixed charges: |
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Interest expense (including amortization premiums and discounts related to indebtedness) |
| 53,943 |
| 47,608 |
| 44,257 |
| 46,394 |
| 43,994 |
| 20,487 |
| 22,023 |
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Early extinguishment of debt |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
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Capitalized interest |
| 99 |
| 73 |
| 132 |
| 82 |
| 185 |
| 62 |
| 194 |
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Estimate of interest within rental expense |
| 150 |
| 150 |
| 150 |
| 150 |
| 150 |
| 75 |
| 75 |
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Total Fixed Charges |
| 54,192 |
| 47,831 |
| 44,539 |
| 46,626 |
| 44,329 |
| 20,624 |
| 22,292 |
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Income allocated to preferred shareholders |
| — |
| — |
| — |
| 1,218 |
| 6,008 |
| 3,004 |
| 3,004 |
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Total combined fixed charges and preferred distributions |
| 54,192 |
| 47,831 |
| 44,539 |
| 47,844 |
| 50,337 |
| 23,628 |
| 25,296 |
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Ratio of earnings to fixed charges (a) |
| 0.42 |
| 0.50 |
| 0.66 |
| 0.79 |
| 0.71 |
| 0.53 |
| 0.94 |
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(a) In fiscal 2008, 2009, 2010, 2011 and 2012 and in the six months ended June 30, 2012 and 2013, earnings were insufficient to cover combined fixed charges and preferred distributions. The Company must generate additional earnings of $31.3 million, $24.0 million, $15.1 million, $9.9 million and $14.5 million in fiscal 2008, 2009, 2010, 2011 and 2012, and $11.2 million and $1.5 million in the six months ended June 30, 2012 and 2013, respectively, to achieve a fixed charge coverage ratio of 1:1.