Exhibit 12.1
COLONY FINANCIAL, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | Period from June 23, | |
| | | | | | | | | | | | | | | | | | 2009 (Date of | |
| | | Three Months | | | | | | | | | | | | | | | Inception) to | |
| | | Ended March 31, | | | Year Ended December 31, | | | December 31, 2009 | |
| | | 2014 (Unaudited) | | | 2013 | | | 2012 | | | 2011 | | | 2010 | | | (1) | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Income (loss) before income taxes before adjustment for noncontrolling interest and income from equity method investees | | $ | 7,456 | | | $ | 25,874 | | | $ | 1,633 | | | $ | (2,356 | ) | | $ | (6,516 | ) | | $ | (1,610 | ) |
Add: | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | 8,949 | | | | 18,838 | | | | 8,248 | | | | 3,011 | | | | 555 | | | | — | |
Distributed income of equity investees | | | 24,027 | | | | 101,874 | | | | 64,839 | | | | 25,959 | | | | 16,296 | | | | — | |
Subtract: | | | | | | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests in pre-tax income of consolidated subsidiaries with no fixed charges | | | (5,747 | ) | | | (17,018 | ) | | | (1,976 | ) | | | (1,095 | ) | | | (22 | ) | | | (2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Earnings (loss) | | $ | 34,685 | | | $ | 129,568 | | | $ | 72,744 | | | $ | 25,519 | | | $ | 10,313 | | | $ | (1,612 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest expense | | $ | 8,949 | | | $ | 18,838 | | | $ | 8,248 | | | $ | 3,011 | | | $ | 555 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | | 3.9x | | | | 6.9x | | | | 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
Three Months
Ended March 31,
2014 (Unaudited) | | | Pro Forma for the
Year Ended
December 31, 2013 | |
Earnings: | | | | | | | | |
Income before income taxes before adjustment for noncontrolling interest and income from equity method investees | | $ | 6,311 | | | $ | 21,388 | |
Add: | | | | | | | | |
Fixed charges | | | 10,094 | | | | 23,324 | |
Distributed income of equity investees | | | 24,027 | | | | 101,874 | |
Subtract: | | | | | | | | |
Noncontrolling interests in pre-tax income of consolidated subsidiaries with no fixed charges | | | (5,747 | ) | | | (17,018 | ) |
| | | | | | | | |
Earnings | | $ | 34,685 | | | $ | 129,568 | |
| | | | | | | | |
Fixed Charges: | | | | | | | | |
Interest expense | | $ | 10,094 | | | $ | 23,324 | |
| | | | | | | | |
Pro Forma Ratio of Earnings to Fixed Charges (1) | | | 3.4x | | | | 5.6x | |
| | | | | | | | |
| (1) | In calculating the pro forma ratio of earnings to fixed charges, we have assumed the additional notes offered by this prospectus supplement were issued on January 1, 2013 and the repayment of outstanding borrowings under our revolving credit facility with the net proceeds therefrom (or a portion of such borrowings, to the extent such borrowings exceeded the net proceeds from this offering). Therefore, the pro forma ratio reflects the effects of additional interest expense that would have been incurred on the additional notes and lower interest expense resulting from the assumed repayment of borrowings under our revolving credit facility. As of June 11, 2014, we had approximately $110 million in outstanding borrowings under our revolving credit facility. |
COLONY FINANCIAL, INC.
COMPUTATION OF PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES
(In thousands, except ratios)
| | | | | | | | |
| | | Pro Forma for the
Three Months
Ended March 31,
2014 (Unaudited) | | | Pro Forma for the
Year Ended
December 31, 2013 | |
Earnings: | | | | | | | | |
Income before income taxes before adjustment for noncontrolling interest and income from equity method investees | | $ | 6,412 | | | $ | 21,540 | |
Add: | | | | | | | | |
Fixed charges | | | 9,993 | | | | 23,172 | |
Distributed income of equity investees | | | 24,027 | | | | 101,874 | |
Subtract: | | | | | | | | |
Noncontrolling interests in pre-tax income of consolidated subsidiaries with no fixed charges | | | (5,747 | ) | | | (17,018 | ) |
| | | | | | | | |
Earnings | | $ | 34,685 | | | $ | 129,568 | |
| | | | | | | | |
Fixed Charges: | | | | | | | | |
Interest expense | | $ | 9,993 | | | $ | 23,172 | |
| | | | | | | | |
Pro Forma Ratio of Earnings to Fixed Charges (1) | | | 3.5x | | | | 5.6x | |
| | | | | | | | |
| (1) | In calculating this pro forma ratio, as adjusted, of earnings to fixed charges, we have assumed that (i) the additional notes offered by this prospectus supplement were issued on January 1, 2013, and (ii) $75 million of shares of Series B Preferred Stock were issued on January 1, 2013. For purposes of this pro forma calculation, we have assumed the repayment of outstanding borrowings under our revolving credit facility with the combined net proceeds from this offering and the Series B Preferred Stock offering (or a portion of such borrowings, to the extent such borrowings exceeded the combined net proceeds from both offerings). Therefore, the pro forma ratio as adjusted reflects the effects of additional interest expense that would have been incurred on the additional notes and lower interest expense resulting from the assumed repayment of borrowings under our revolving credit facility to the extent of the combined net proceeds of both offerings. As of June 11, 2014, we had approximately $110 million in outstanding borrowings under our revolving credit facility. |
