EXHIBIT 12.1
GLOBAL NET LEASE, INC.
CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
The following table sets forth the historical ratio of earnings to fixed charges and to combined fixed charges and preferred stock dividends of Global Net Lease, Inc.’s (the “Company”) for the periods indicated. The following table also sets forth the Company’s pro forma ratio of earnings to fixed charges and to combined fixed charges and preferred stock dividends for the periods indicated, as adjusted to give effect to the completion of the Company’s public offering of 4,000,000 shares of the Company’s 7.25% Series A Cumulative Redeemable Preferred Stock for an aggregate net proceeds of $96,850,000, and the application of the proceeds therefrom to repay indebtedness outstanding under the Company’s revolving credit facility, as if it had occurred on January 1, 2016. Dollar amounts are presented in thousands unless otherwise noted:
| | | Historical | | | Historical Year Ended December 31 | | | Pro Forma | |
| | | January 1,
2017 to
June 30,
2017
(unaudited) | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | January 1,
2017 to
June 30,
2017
(unaudited) | | | Year Ended
December 31,
2016
(unaudited) | |
| Earnings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Pre-tax income/(loss) from continuing operations before adjustment for non-controlling interests in consolidated subsidiaries | | $ | 14,066 | | | $ | 51,999 | | | $ | 3,874 | | | $ | (55,025 | ) | | $ | (6,989 | ) | | $ | (413 | ) | | $ | 15,494 | | | $ | 54,314 | |
Add:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | | 21,038 | | | | 32,860 | | | | 26,826 | | | | 11,597 | | | | 720 | | | | 9 | | | | 19,610 | | | | 30,545 | |
| Amortization of deferred financing costs | | | 1,823 | | | | 6,698 | | | | 8,527 | | | | 3,753 | | | | 250 | | | | 1 | | | | 1,823 | | | | 6,698 | |
| Amortization of mortgage (discount) premium, net, and mezzanine discount | | | 304 | | | | (437 | ) | | | (489 | ) | | | (498 | ) | | | (1 | ) | | | — | | | | 304 | | | | (437 | ) |
| | | $ | 37,231 | | | $ | 91,120 | | | $ | 38,738 | | | $ | (40,173 | ) | | $ | (6,020 | ) | | $ | (403 | ) | | $ | 37,231 | | | $ | 91,120 | |
Fixed Charges:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest expense | | $ | 21,038 | | | $ | 32,860 | | | $ | 26,826 | | | $ | 11,597 | | | $ | 720 | | | $ | 9 | | | $ | 19,610 | | | $ | 30,545 | |
| Amortization of deferred financing costs | | | 1,823 | | | | 6,698 | | | | 8,527 | | | | 3,753 | | | | 250 | | | | 1 | | | | 1,823 | | | | 6,698 | |
| Amortization of mortgage (discount) premium | | | 304 | | | | (437 | ) | | | (489 | ) | | | (498 | ) | | | (1 | ) | | | — | | | | 304 | | | | (437 | ) |
| | | $ | 23,165 | | | $ | 39,121 | | | $ | 34,864 | | | $ | 14,852 | | | $ | 969 | | | $ | 10 | | | $ | 21,737 | | | $ | 36,806 | |
| Preferred stock dividends | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | $ | 3,625 | | | $ | 7,250 | |
| Combined fixed charges and preferred stock dividends | | $ | 23,165 | | | $ | 39,121 | | | $ | 34,864 | | | $ | 14,852 | | | $ | 969 | | | $ | 10 | | | $ | 25,362 | | | $ | 44,056 | |
| Ratio of earnings to fixed charges | | | 1.61 | | | | 2.33 | | | | 1.11 | | | | * | | | | * | | | | * | | | | 1.71 | | | | 2.48 | |
| Ratio of earnings to combined fixed charges and preferred stock dividends | | | 1.61 | | | | 2.33 | | | | 1.11 | | | | * | | | | * | | | | * | | | | 1.47 | | | | 2.07 | |
* For these periods, earnings were less than fixed charges and less than combined fixed charges, and the coverage deficiency for each was approximately $55,025, $6,989 and $413 for the years ended December 31, 2014, 2013 and 2012, respectively.
