STATEMENT OF COMPUTATION OF RATIOS OF EARNINGS
TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(in thousands, except ratios)
Because Spirit Realty Capital, Inc., directly or indirectly through wholly-owned subsidiaries, owns 100% interest in Spirit Realty, L.P., the ratios of earnings to combined fixed charges are the same for Spirit Realty Capital, Inc. and Spirit Realty, L.P.
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| | | | | | | | | | | | | | | | | | | | | | |
| Twelve Months Ended December 31, |
| 2017 | | 2016 | | 2015 | | 2014 | | 2013 | |
| | | | | | | | | | |
Pre-tax income (loss) from continuing operations | $ | 12,436 |
| | $ | 46,046 |
| | $ | 24,704 |
| | $ | (50,186 | ) | | $ | (32,059 | ) | |
Add: Fixed charges | 190,127 |
| | 196,586 |
| | 222,901 |
| | 220,070 |
| | 179,267 |
| |
Pre-tax earnings from continuing operations before fixed charges | $ | 202,563 |
| | $ | 242,632 |
| | $ | 247,605 |
| | $ | 169,884 |
| | $ | 147,208 |
| |
| | | | | | | | | | |
Fixed charges: | | | | | | | | | | |
Interest expense | $ | 166,659 |
| | $ | 181,206 |
| | $ | 212,534 |
| | $ | 214,895 |
| | $ | 161,415 |
| |
Amortization of deferred financing costs | 9,896 |
| | 9,070 |
| | 7,937 |
| | 5,899 |
| | 13,188 |
| |
Amortization of discount relating to indebtedness | 14,638 |
| | 15,104 |
| | 17,823 |
| | 17,752 |
| | 13,234 |
| |
Amortization of premium relating to indebtedness | (1,066 | ) | | (8,887 | ) | | (15,501 | ) | | (18,601 | ) | | (8,581 | ) | |
Amortization related to interest rate swaps | — |
| | 93 |
| | 108 |
| | 125 |
| | 11 |
| |
Fixed charges | $ | 190,127 |
| | $ | 196,586 |
| | $ | 222,901 |
| | $ | 220,070 |
| | $ | 179,267 |
| |
| | | | | | | | | | |
Ratio of earnings from continuing operations to fixed charges | 1.07x | | 1.23x | | 1.11x | | — | (1 | ) | — | (1 | ) |
| | | | | | | | | | |
Fixed charges | $ | 190,127 |
| | $ | 196,586 |
| | $ | 222,901 |
| | $ | 220,070 |
| | $ | 179,267 |
| |
Preferred dividends | 2,530 |
| | — |
| | — |
| | — |
| | — |
| |
Combined fixed charges and preferred dividends | $ | 192,657 |
| | $ | 196,586 |
| | $ | 222,901 |
| | $ | 220,070 |
| | $ | 179,267 |
| |
| | | | | | | | | | |
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | 1.05x | | 1.23x | | 1.11x | | — |
| (2 | ) | — |
| (2 | ) |
| | | | | | | | | | |
Surplus (Deficiency) Combined Fixed Charges and Preferred Dividends | $ | 9,906 |
| | $ | 46,046 |
| | $ | 24,704 |
| | $ | (50,186 | ) | | $ | (32,059 | ) | |
| | | | | | | | | | |
Interest expense | 166,659 |
| | 181,299 |
| | 212,642 |
| | 215,020 |
| | 161,426 |
| |
(1) The ratio of earnings from continuing operations to fixed charges was less than 1.00 as a result of losses from continuing operations.
(2) The ratio of earnings to combined fixed charges and preferred dividends was less than 1.00 as a result of losses from continuing operations.