Exhibit 12.1
Corporate Office Properties Trust
Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends
(Dollars in thousands)
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| Six Months |
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| Ended |
| Years Ended December 31, |
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|
| 6/30/2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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Earnings: |
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|
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|
|
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Income from continuing operations before equity in loss of unconsolidated entities, income taxes and minority interests |
| $ | 19,550 |
| $ | 40,881 |
| $ | 42,959 |
| $ | 33,853 |
| $ | 25,304 |
| $ | 23,900 |
|
Gain (loss) on sales of real estate, excluding discontinued operations |
| 160 |
| 366 |
| (150 | ) | 472 |
| 2,564 |
| 1,618 |
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Combined fixed charges and preferred share dividends (from below) |
| 51,162 |
| 85,240 |
| 70,627 |
| 71,541 |
| 57,894 |
| 49,765 |
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Amortization of capitalized interest |
| 218 |
| 339 |
| 288 |
| 256 |
| 197 |
| 88 |
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Distributed (loss) income of equity investees |
| (59 | ) | (164 | ) | (83 | ) | (181 | ) | 295 |
| 104 |
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Subtract: |
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Capitalized interest (from below) |
| (6,643 | ) | (9,871 | ) | (5,112 | ) | (2,846 | ) | (3,091 | ) | (5,295 | ) | ||||||
Preferred share dividends included in fixed charges |
| (7,307 | ) | (14,615 | ) | (16,329 | ) | (12,003 | ) | (10,134 | ) | (6,857 | ) | ||||||
Preferred unit distributions included in fixed charges |
| (330 | ) | (660 | ) | (179 | ) | (1,049 | ) | (2,287 | ) | (2,287 | ) | ||||||
Repurchase of preferred units in excess of recorded book value |
| — |
| — |
| — |
| (11,224 | ) | — |
| — |
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Issuance costs associated with redeemed preferred shares |
| — |
| — |
| (1,813 | ) | — |
| — |
| — |
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Total earnings |
| $ | 56,751 |
| $ | 101,516 |
| $ | 90,208 |
| $ | 78,819 |
| $ | 70,742 |
| $ | 61,036 |
|
Combined fixed charges and preferred share dividends: |
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Interest expense on continuing operations |
| $ | 35,017 |
| $ | 55,297 |
| $ | 42,354 |
| $ | 39,014 |
| $ | 36,847 |
| $ | 30,033 |
|
Interest expense on discontinued operations |
| 334 |
| 1,847 |
| 1,909 |
| 2,165 |
| 2,509 |
| 2,748 |
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Capitalized interest (internal and external) |
| 6,643 |
| 9,871 |
| 5,112 |
| 2,846 |
| 3,091 |
| 5,295 |
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Amortization of debt issuance costs-expensed |
| 1,168 |
| 2,240 |
| 2,431 |
| 2,767 |
| 2,501 |
| 2,031 |
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Amortization of debt issuance costs-capitalized |
| 111 |
| 272 |
| 113 |
| — |
| 59 |
| 119 |
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Interest included in rental expense |
| 252 |
| 438 |
| 387 |
| 473 |
| 466 |
| 395 |
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Preferred share dividends |
| 7,307 |
| 14,615 |
| 16,329 |
| 12,003 |
| 10,134 |
| 6,857 |
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Preferred unit distributions |
| 330 |
| 660 |
| 179 |
| 1,049 |
| 2,287 |
| 2,287 |
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Repurchase of preferred units in excess of recorded book value |
| — |
| — |
| — |
| 11,224 |
| — |
| — |
| ||||||
Issuance costs associated with redeemed preferred shares |
| — |
| — |
| 1,813 |
| — |
| — |
| — |
| ||||||
Total combined fixed charges and preferred share dividends |
| $ | 51,162 |
| $ | 85,240 |
| $ | 70,627 |
| $ | 71,541 |
| $ | 57,894 |
| $ | 49,765 |
|
Ratio of earnings to combined fixed charges and preferred share dividends |
| 1.11 |
| 1.19 |
| 1.28 |
| 1.10 |
| 1.22 |
| 1.23 |
|