UDR (UDR) 10-Q 2005 Q3 Quarterly report

Exhibit 12

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(Dollars in thousands)

			Three Months Ended						Nine Months Ended
			September 30,						September 30,
			2005			2004			2005			2004
Income before discontinued operations, net of minority interests			$	3,183		$	3,534		$	14,147		$	20,488
Add:
	Portion of rents representative of the interest factor			167			159			496			470
	Minority interests			(77	)		(171	)		250			199
	Loss on early debt retirement			—			—			6,785			—
	Interest on indebtedness from continuing operations			41,331			29,780			119,347			87,555
		Earnings	$	44,604		$	33,302		$	141,025		$	108,712
Fixed charges and preferred stock dividend:
	Interest on indebtedness from continuing operations		$	41,331		$	29,780		$	119,347		$	87,555
	Capitalized interest			353			212			988			692
	Portion of rents representative of the interest factor			167			159			496			470
		Fixed charges		41,851			30,151			120,831			88,717
Add:
	Preferred stock dividend			3,842			5,094			11,527			15,271
	Accretion of preferred stock			—			1,562			—			4,687
		Preferred stock dividend		3,842			6,656			11,527			19,958
		Combined fixed charges and preferred stock dividend	$	45,693		$	36,807		$	132,358		$	108,675
Ratio of earnings to fixed charges				1.07	x		1.10	x		1.17	x		1.23	x
Ratio of earnings to combined fixed charges and preferred stock dividend				—			—			1.07	x		1.00	x

For the three months ended September 30, 2005 and 2004, the ratio of earnings to combined fixed charges and preferred stock dividend was deficient of achieving a 1:1 ratio by $1.1 million and $3.5 million, respectively.