Exhibit 12.2
COMMONWEALTH REIT
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DISTRIBUTIONS
(dollars in thousands)
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| Three Months Ended |
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| March 31, |
| Year Ended December 31, |
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| 2012 |
| 2011 |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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Earnings: |
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Income (loss) from continuing operations before income tax expense |
| $ | 25,066 |
| $ | 10,475 |
| $ | 63,156 |
| $ | (60,596 | ) | $ | 68,085 |
| $ | 61,348 |
| $ | 72,256 |
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Equity in earnings and gains on equity transactions of investees |
| (2,958 | ) | (2,712 | ) | (22,554 | ) | (43,272 | ) | (6,546 | ) | — |
| — |
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Fixed charges before preferred distributions |
| 49,106 |
| 47,414 |
| 195,024 |
| 183,433 |
| 173,458 |
| 180,553 |
| 172,060 |
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Distributions from investees |
| 4,179 |
| 4,080 |
| 16,617 |
| 16,119 |
| 4,975 |
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| — |
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Capitalized interest |
| — |
| — |
| — |
| — |
| — |
| — |
| (489 | ) | |||||||
Adjusted Earnings |
| $ | 75,393 |
| $ | 59,257 |
| $ | 252,243 |
| $ | 95,684 |
| $ | 239,972 |
| $ | 241,901 |
| $ | 243,827 |
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Fixed Charges and Preferred Distributions: |
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Interest expense (including net amortization of debt discounts, premiums and deferred financing fees) |
| $ | 49,106 |
| $ | 47,414 |
| $ | 195,024 |
| $ | 183,433 |
| $ | 173,458 |
| $ | 180,553 |
| $ | 171,571 |
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Capitalized interest |
| — |
| — |
| — |
| — |
| — |
| — |
| 489 |
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Preferred distributions |
| 13,823 |
| 8,839 |
| 46,985 |
| 47,733 |
| 50,668 |
| 50,668 |
| 60,572 |
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Combined Fixed Charges and Preferred Distributions |
| $ | 62,929 |
| $ | 56,253 |
| $ | 242,009 |
| $ | 231,166 |
| $ | 224,126 |
| $ | 231,221 |
| $ | 232,632 |
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Ratio of Earnings to Combined Fixed Charges and Preferred Distributions |
| 1.2x |
| 1.1x |
| 1.0x |
| 0.4x | (1) | 1.1x |
| 1.0x |
| 1.0x |
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(1) The deficiency for this period was $135,482 and reflects a loss on asset impairment of $127,740.