UDR (UDR) 10-Q 2010 Q2 Quarterly report

EXHIBIT 12

UDR, Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)

	Three Months Ended June 30,						Six months ended June 30,
	2010			2009			2010			2009
Loss from continuing operations	$	(27,837	)	$	(14,713	)	$	(52,822	)	$	(27,968	)
Add (from continuing operations):
Interest on indebtedness (a)		36,915			36,429			73,781			74,234
Portion of rents representative of the interest factor		469			580			974			1,255
Earnings	$	9,547		$	22,296		$	21,933		$	47,521
Fixed charges and preferred stock dividend (from continuing operations):
Interest on indebtedness (a)	$	36,915		$	36,429		$	73,781		$	74,234
Capitalized interest		3,329			4,268			7,276			8,170
Portion of rents representative of the interest factor		469			580			974			1,255
Fixed charges		40,713			41,277			82,031			83,659
Add:
Preferred stock dividend		2,372			2,800			4,751			5,600
Discount on preferred stock repurchases		(25	)		—			(25	)		—
Combined fixed charges and preferred stock dividend	$	43,060		$	44,077		$	86,757		$	89,259
Ratio of earnings to fixed charges		—			—			—			—
Ratio of earnings to combined fixed charges and preferred stock dividend		—			—			—			—

For the three months ended June 30, 2010, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $31.2 million and $33.5 million, respectively.

For the three months ended June 30, 2009, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $19.0 million and $21.8 million, respectively.

For the six months ended June 30, 2010, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $60.1 million and $64.8 million, respectively.

For the six months ended June 30, 2009, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $36.1 million and $41.7 million, respectively.

(a) Interest on indebtedness for the three and six months ended June 30, 2010 is presented gross of the loss on debt extinguishment of $1.0 million. Interest on indebtedness for the three and six months ended June 30, 2009 is presented gross of the gain on debt extinguishment of $2.7 million and $9.8 million.