Exhibit 12.1
CAMPUS CREST COMMUNITIES, INC. AND
CAMPUS CREST COMMUNITIES PREDECESSOR
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| | | The Company | | | Predecessor | |
| | | | | | | | | Period October 19, | | | Period January 1, | | | | | | | |
| | | Year Ended | | | Year Ended | | | 2010 through | | | 2010 through | | | Year Ended | | | Year Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | October 18, | | | December 31, | | | December 31, | |
| | | 2012 | | | 2011 | | | 2010(1) | | | 2010(1) | | | 2009 | | | 2008 | |
| | | (dollars in thousands) | |
| Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
| Income before taxes, noncontrolling interests and equity in earnings (loss) of unconsolidated subsidiaries | | $ | 10,793 | (2) | | $ | 5,409 | (3) | | $ | (1,442 | )(4) | | $ | (20,393 | ) | | $ | (17,164 | ) | | $ | (26,097 | ) |
| Add: Fixed charges | | | 20,882 | | | | 10,176 | | | | 4,289 | | | | 21,769 | | | | 17,080 | | | | 17,533 | |
| Add: Amortization of capitalized interest(5) | | | 113 | | | | 53 | | | | 1 | | | | 113 | | | | 137 | | | | 127 | |
| Less: Capitalized interest | | | (2,385 | ) | | | (1,950 | ) | | | (175 | ) | | | (85 | ) | | | (381 | ) | | | (1,789 | ) |
| Total earnings (loss) | | $ | 29,403 | | | $ | 13,688 | | | $ | 2,673 | | | $ | 1,404 | | | $ | (328 | ) | | $ | (10,226 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Combined fixed charges and preferred stock dividends: | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | $ | 11,545 | | | $ | 6,888 | | | $ | 2,519 | | | $ | 20,836 | | | $ | 15,871 | | | $ | 14,946 | |
| Capitalized interest | | | 2,385 | | | | 1,950 | | | | 175 | | | | 85 | | | | 381 | | | | 1,789 | |
| Amortization of deferred financing costs | | | 2,838 | | | | 1,338 | | | | 1,595 | | | | 848 | | | | 828 | | | | 798 | |
| Dividends on preferred stock(6) | | | 4,114 | | | | - | | | | - | | | | - | | | | - | | | | - | |
| Combined fixed charges and preferred stock dividends | | $ | 20,882 | | | $ | 10,176 | | | $ | 4,289 | | | $ | 21,769 | | | $ | 17,080 | | | $ | 17,533 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of earnings to combined fixed charges and preferred stock dividends(7) | | | 1.41 | x | | | 1.35 | x | | | 0.62 | x | | | 0.06 | x | | | - | (8) | | | - | (8) |
| (1) | Our initial public offering was completed October 19, 2010. |
| (2) | Includes non-cash gain of approximately $6.6 million recognized in connection with the acquisition of our joint venture partner's interest in The Grove at Moscow and The Grove at Valdosta, which if excluded would result in a ratio of earnings to fixed charges of 1.09x |
| (3) | Includes non-cash gain of approximately $3.2 million recognized in connection with the acquisition of our joint venture partner's interest in The Grove at Huntsville and The Grove at Statesboro, which if excluded would result in a ratio of earnings to fixed charges of 1.03x. |
| (4) | Includes non-cash gain of approximately $0.6 million recognized in connection with the acquisition of our joint venture partner's interest in The Grove at San Marcos, which if excluded would result in a ratio of earnings to fixed charges of 0.49x. |
| (5) | Represents an estimate based on the Company's and the Predecessor's established depreciation policies and an analysis of capitalized interest. |
| (6) | We issued preferred stock in February 2012. |
| (7) | The shortfall of earnings to combined fixed charges and preferred stock dividends for Campus Crest Communities, Inc. for the period October 19, 2010 through December 31, 2010 was approximately $1.6 million and for Campus Crest Communities Predecessor for the period January 1, 2010 through October 18, 2010 and for the years ended December 31, 2009, 2008 was approximately $20.4 million, $17.4 million and $27.8 million respectively. |
| (8) | Earnings for the period were less than zero. |
