UDR (UDR) 10-K 2005 FY Annual report

Exhibit 12

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

	Years ended December 31,
	2005			2004			2003			2002			2001
Income/(loss) before discontinued operations, net of minority interests	$	18,302		$	24,421		$	24,188		$	(13,985	)	$	1,924
Add:
Portion of rents representative of the interest factor		667			651			651			691			794
Minority interests		288			127			(883	)		(1,304	)		(151	)
Loss on equity investment in joint venture		—			—			—			—			254
Interest on indebtedness from continuing operations		162,508			123,170			116,294			127,102			132,196
Earnings	$	181,765		$	148,369		$	140,250		$	112,504		$	135,017
Fixed charges and preferred stock dividend:
Interest on indebtedness from continuing operations	$	162,508		$	123,170		$	116,294		$	127,102		$	132,196
Capitalized interest		2,769			986			1,808			931			2,925
Portion of rents representative of the interest factor		667			651			651			691			794
Fixed charges		165,944			124,807			118,753			128,724			135,915
Add:
Preferred stock dividend		15,370			19,531			26,326			27,424			31,190
Accretion of preferred stock		—			5,729			19,271			—			—
Preferred stock dividend and accretion of preferred stock		15,370			25,260			45,597			27,424			31,190
Combined fixed charges and preferred stock dividend	$	181,314		$	150,067		$	164,350		$	156,148		$	167,105
Ratio of earnings to fixed charges		1.10	x		1.19	x		1.18	x		—			—
Ratio of earnings to combined fixed charges and preferred stock dividend		1.00	x		—			—			—			—

For the year ended December 31, 2004, the ratio of earnings to combined fixed charges and preferred stock dividend was deficient of achieving a 1:1 ratio by $1.7 million.

For the year ended December 31, 2003, the ratio of earnings to combined fixed charges and preferred stock dividend was deficient of achieving a 1:1 ratio by $24.1 million.

For the year ended December 31, 2002, the ratio of earnings to fixed charges was deficient of achieving a 1:1 ratio by $16.2 million.

For the year ended December 31, 2002, the ratio of earnings to combined fixed charges and preferred stock dividend was deficient of achieving a 1:1 ratio by $43.6 million.

For the year ended December 31, 2001, the ratio of earnings to fixed charges was deficient of achieving a 1:1 ratio by $0.9 million.

For the year ended December 31, 2001, the ratio of earnings to combined fixed charges and preferred stock dividend was deficient of achieving a 1:1 ratio by $32.1 million.