Centerspace (CSR) 10-Q 2015 Q1 Quarterly report

Exhibit 12

CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED SHARE DISTRIBUTIONS

(In Thousands, Except Ratios; Unaudited)

		Three Months Ended		Fiscal Year Ended April 30,
		July 31, 2014			2014		2013		2012		2011		2010
Earnings
(Loss) income from continuing operations		$	(199)	$	(23,390)	$	20,677	$	8,644	$	4,679	$	5,710
Add:
	Combined fixed charges and preferred distributions (see below)		18,573		73,933		73,657		68,172		64,954		71,497
	Amortization of capitalized interest		14		0		0		0		0		0
Less:
	(Income) loss noncontrolling interests – consolidated real estate entities		(354)		(910)		(809)		(135)		180		(22)
	Interest capitalized		(1,030)		(2,856)		(742)		(571)		(57)		(19)
	Preferred distributions		(2,879)		(11,514)		(9,229)		(2,372)		(2,372)		(2,372)
Total earnings		$	14,125	$	35,263	$	83,554	$	73,738	$	67,384	$	74,794
Fixed charges
	Interest expensed	$	14,664	$	59,563		63,686		65,229		62,525		69,106
	Interest capitalized		1,030		2,856		742		571		57		19
Total fixed charges		$	15,694	$	62,419	$	64,428	$	65,800	$	62,582	$	69,125
	Preferred distributions		2,879		11,514		9,229		2,372		2,372		2,372
Total combined fixed charges and preferred distributions		$	18,573	$	73,933	$	73,657	$	68,172	$	64,954	$	71,497
Ratio of earnings to fixed charges			(1)		(2)		1.30x		1.12x		1.08x		1.08x
Ratio of earnings to combined fixed charges and preferred distributions			(1)		(2)		1.13x		1.08x		1.04x		1.05x

(1) Due to non-cash asset impairment and loss on sale charges of $5.3 million, earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $1.6 million and $4.5 million, respectively. Excluding the asset impairment and loss on sale charges, the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred distributions would have been 1.24 and 1.05, respectively, for the three months  ended July 31, 2014.

(2) Due to non-cash asset impairment charges of $42.6 million, earnings were inadequate to cover fixed charges and combined fixed charges and preferred distributions by $27.2 million and $38.7 million, respectively. Excluding the asset impairment charge, the ratios of earnings to fixed charges and earnings to combined fixed charges and preferred distributions would have been 1.25 and 1.05, respectively, for the fiscal year ended April 30, 2014.