Exhibit 12.2
KILROY REALTY, L.P.
Statement of Computation of Ratio of Earnings to Fixed Charges
(in thousands, except ratios)
For the Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 12,068 | 5,447 | $ | (3,728 | ) | $ | (427 | ) | $ | 15,569 | $ | 28,181 | |||||||||||
Plus Fixed Charges: | ||||||||||||||||||||||||
Interest expense (including amortization of loan costs) | 39,168 | 79,114 | 89,409 | 59,941 | 46,119 | 45,346 | ||||||||||||||||||
Capitalized interest and loan costs | 16,212 | 19,792 | 9,130 | 10,015 | 9,683 | 18,132 | ||||||||||||||||||
Estimate of interest within rental expense | 2,040 | 3,475 | 1,481 | 997 | 871 | 871 | ||||||||||||||||||
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Fixed Charges | 57,420 | 102,381 | 100,020 | 70,953 | 56,673 | 64,349 | ||||||||||||||||||
Plus: Amortization of capitalized interest(1) | 2,890 | 5,318 | 4,622 | 4,348 | 4,067 | 3,669 | ||||||||||||||||||
Less: Capitalized interest and loan costs | (16,212 | ) | (19,792 | ) | (9,130 | ) | (10,015 | ) | (9,683 | ) | (18,132 | ) | ||||||||||||
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Earnings | $ | 56,166 | 93,354 | $ | 91,784 | $ | 64,859 | $ | 66,626 | $ | 78,067 | |||||||||||||
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Ratio of earnings to fixed charges | 0.98 | x | 0.91 | x | 0.92 | x | 0.91 | x | 1.18 | x | 1.21 | x | ||||||||||||
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Fixed Charges in Excess of Earning (in thousands) | $ | 1,254 | $ | 9,027 | $ | 8,236 | $ | 6,094 | ||||||||||||||||
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(1) | Amount represents an estimate of capitalized interest that has been amortized each year based on our established depreciation policy and an analysis of total interest costs and loan costs capitalized since 1997. |
We have computed the ratio of earnings to fixed charges by dividing earnings by fixed charges. Earnings consist of income from continuing operations before the effect of noncontrolling interest plus fixed charges and amortization of capital interest and reduced by capitalized interest and loan costs. Fixed charges consist of interest costs, whether expensed or capitalized, amortization of loan costs and an estimate of the interest within rental expense.