ACRES Commercial Realty (ACR) 10-Q 2018 Q2 Quarterly report

Exhibit 12.1

STATEMENT REGARDING COMPUTATION OF RATIOS OF EARNINGS

	Six Months Ended		Year Ended				Year Ended				Year Ended			Year Ended
	June 30,		December 31,				December 31,				December 31,			December 31,
	2018		2017				2016				2015			2014
	(unaudited)
Earnings:
Pretax income before preferred shared from continuing operations	$	9,021,109	$	(343,321	)		$	12,433,855			$	57,717,463		$	45,636,957
Non-controlling interest	—		(229,547		)		6,627,890				965,007			—
Equity in earnings of unconsolidated subsidiaries	223,093		(5,973,088		)		(2,388,038		)		(4,766,980		)	(949,180		)
Cash income received from unconsolidated entities	—		1,869,247				2,963,499				1,163,805			—
Fixed charges	30,556,352		53,765,276				56,568,114				43,528,402			60,957,469
Total	$	39,800.554	$	49,088.567			$	76,205.32			$	98,607.697		$	105,645.246
Fixed Charges:
Interest (expensed and capitalized)	$	26,162,441	$	45,223,899			$	48,186,795			$	36,729,426		$	52,298,502
Amortized premiums, discounts and capitalized expenses related to indebtedness	4,381,289		8,523,738				8,343,513				6,763,854			8,629,755
Estimate of interest within rental expenses	12,621		17,639				37,806				35,122			29,212
Total	$	30,556.351	$	53,765.276			$	56,568.114			$	43,528.402		$	60,957.469
Preferred stock dividend	$	7,797,464	$	24,091,021			$	24,437,458			$	17,175,869		$	7,221,041
Ratio of earnings to combined fixed charges	1.30		—			(2)	1.35				2.27			1.73
Ratio of earnings to combined fixed charges and preferred stock dividends	1.04		—			(3)	—			(3)	1.62			1.55

(1) The Company did not have any shares of preferred stock outstanding until June 2012 and paid its first preferred stock dividend in July 2012.

(2) The dollar amount of the deficiency for the year ended December 31, 2016 was $4.7 million.

(3) The dollar amount of the deficiency for the year ended December 31, 2016 and 2015 was $28.8 million and $4.8 million, respectively.