Vornado Realty Trust (VNO) 10-K 2012 FY Annual report

EXHIBIT 12
COMPUTATION OF RATIOS
(UNAUDITED)
Our consolidated ratios of earnings to fixed charges and earnings to combined fixed charges and preference dividends for each of the fiscal years ended December 31, 2012, 2011, 2010, 2009 and 2008 are as follows:
		For the Year Ended December 31,
(Amounts in thousands)		2012		2011		2010		2009		2008
(Loss) income from continuing operations before income taxes and
	income from partially owned entities	$	(6,395)	$	484,198	$	630,843	$	(7,166)	$	136,618
Fixed charges			541,607		556,037		569,963		645,098		683,333
Income distributions from partially owned entities			226,172		93,635		61,037		30,473		44,690
Capitalized interest			(16,801)		(1,197)		(864)		(17,256)		(63,063)
Preferred unit distributions			(9,936)		(16,853)		(18,192)		(19,658)		(19,743)
Earnings - Numerator		$	734,647	$	1,115,820	$	1,242,787	$	631,491	$	781,835
Interest and debt expense		$	500,361	$	526,175	$	539,370	$	597,105	$	591,419
Capitalized interest			16,801		1,197		864		17,256		63,063
1/3 of rental expense – interest factor			14,509		11,812		11,537		11,079		9,108
Preferred unit distributions			9,936		16,853		18,192		19,658		19,743
Fixed charges - Denominator			541,607		556,037		569,963		645,098		683,333
Preferred share dividends			76,937		65,531		55,534		57,076		57,091
Combined fixed charges and preference dividends - Denominator		$	618,544	$	621,568	$	625,497	$	702,174	$	740,424
Ratio of earnings to fixed charges			1.36		2.01		2.18		0.98		1.14
Ratio of earnings to combined fixed charges and preference dividends			1.19		1.80		1.99		0.90		1.06
Earnings equals (i) income from continuing operations before income taxes and income from partially owned entities, plus, (ii) fixed charges, (iii) income distributions from partially owned entities, minus (iv) capitalized interest and (v) preferred unit distributions of the Operating Partnership. Fixed charges equals (i) interest and debt expense, plus (ii) capitalized interest, (iii) the portion of operating lease rental expense that is representative of the interest factor, which is one-third of operating lease rentals and (iv) preferred unit distributions of the Operating Partnership. Combined fixed charges and preference dividends equals fixed charges plus preferred share dividends.