Exhibit 12.1
COLONY FINANCIAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | |
| | | Nine Months
Ended September 30,
2013 | | | Year Ended December 31, | | | Period from June 23,
2009 (Date of
Inception) to
December 31, | |
| | | (Unaudited) | | | 2012 | | | 2011 | | | 2010 | | | 2009 (1) | |
Earnings: | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes before adjustment for noncontrolling interest and income from equity method investees | | $ | 17,453 | | | $ | 1,633 | | | $ | (2,356 | ) | | $ | (6,516 | ) | | $ | (1,610 | ) |
Add: | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | 12,498 | | | | 8,248 | | | | 3,011 | | | | 555 | | | | — | |
Distributed income of equity investees | | | 71,142 | | | | 64,839 | | | | 25,959 | | | | 16,296 | | | | — | |
Subtract: | | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests in pre-tax income of consolidated subsidiaries with no fixed charges | | | (10,200 | ) | | | (1,976 | ) | | | (1,095 | ) | | | (22 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | |
Earnings (loss) | | $ | 90,893 | | | $ | 72,744 | | | $ | 25,519 | | | $ | 10,313 | | | $ | (1,612 | ) |
| | | | | | | | | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 12,498 | | | $ | 8,248 | | | $ | 3,011 | | | $ | 555 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | | 7.3x | | | | 8.8x | | | | 8.5x | | | | 18.6x | | | | N/A | (2) |
| | | | | | | | | | | | | | | | | | | | |
| (1) | We were formed on June 23, 2009 and completed the initial public offering of our common stock on September 29, 2009. |
| (2) | We did not have any fixed charges in the period presented. |
COLONY FINANCIAL, INC.
COMPUTATION OF PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| | | | | | | | |
| | | Pro Forma for the
Nine Months
Ended September 30,
2013 (Unaudited) | | | Pro Forma for the
Year Ended
December 31,
2012 | |
Earnings: | | | | | | | | |
Income before income taxes before adjustment for noncontrolling interest and income from equity method investees | | $ | 17,453 | | | $ | 1,633 | |
Add: | | | | | | | | |
Fixed charges | | | 18,167 | | | | 15,898 | |
Distributed income of equity investees | | | 71,142 | | | | 64,839 | |
Subtract: | | | | | | | | |
Noncontrolling interests in pre-tax income of consolidated subsidiaries with no fixed charges | | | (10,200 | ) | | | (1,976 | ) |
| | | | | | | | |
Earnings | | $ | 96,562 | | | $ | 80,394 | |
| | | | | | | | |
Fixed Charges: | | | | | | | | |
Interest expense | | $ | 18,167 | | | $ | 15,898 | |
| | | | | | | | |
Pro Forma Ratio of Earnings to Fixed Charges | | | 5.3x | (3) | | | 5.1x | (3) |
| | | | | | | | |
| (3) | In calculating the pro forma ratio of earnings to fixed charges, we have assumed the issuance of the convertible notes offered by this prospectus supplement as of the beginning of each period presented and the repayment of all outstanding borrowings under our revolving credit facility with the net proceeds. Therefore, the pro forma ratio reflects the effects of additional interest expense that would have been incurred on the convertible notes and lower interest expense resulting from the assumed repayment of borrowings under our revolving credit facility. |
