Exhibit 12.1
RCC Ratios of Earnings to Combined Fixed Charges and Preferred Stock Dividends
For the six months ended June 30, 2012 | For the year ended December 31, | |||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends (1) | 1.2 | 1.4 | 1.1 | 0.8 | 1.5 | 1.9 | ||||||
(1) The ratios of earnings to fixed charges and preferred stock dividend is computed by dividing earnings by the sum of fixed charges and preferred stock dividend. The term “fixed charges” includes the sum of the following: (a) interest, whether expensed or capitalized, from both continuing and discontinued operations, (b) amortization of premiums, discounts and capitalized expenses related to indebtedness, (c) an estimate of the interest within rental expense, and (d) preference security dividend requirements of consolidated subsidiaries. The term “earnings” is the amount resulting from adding (a) pre-tax income from continuing operations before adjustment for income or loss from equity investees and noncontrolling interests in consolidated subsidiaries, (b) fixed charges, (c) amortization of capitalized interest, (d) distributed income of equity investees, and (e) share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges; then subtracting from the total of added items, the following: (a) capitalized interest, (b) preference security dividend requirements of consolidated subsidiaries, and (c) noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges.
| (amounts in thousands) | For the six months ended June 30, 2012 | Year Ended December 31, | ||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||
| Fixed Coverage Ratio: | ||||||||||||||||||
| Add: pre-tax income from continuing operations before adjustment for income or loss from equity investees and noncontrolling interests in consolidated subsidiaries | $ | 14,608 | 37,695 | 10,065 | (14,978 | ) | 111,858 | 160,271 | ||||||||||
| Add: fixed charges | 73,577 | 153,648 | 158,560 | 157,888 | 159,192 | 146,356 | ||||||||||||
| Add: distributed income of equity investees | 17,580 | 43,360 | 41,054 | 31,252 | 30,731 | 30,547 | ||||||||||||
| Subtract: capitalized interest | (1,246 | ) | (1,480 | ) | (5,099 | ) | (19,062 | ) | (36,511 | ) | (35,424 | ) | ||||||
| Subtract: preferred stock dividends | (12,744 | ) | (23,400 | ) | (23,400 | ) | (23,400 | ) | (23,400 | ) | (23,400 | ) | ||||||
| Subtract: noncontrolling interest in pre-tax income of subsidiaries that have not incurred fixed charges | (35 | ) | (55 | ) | (66 | ) | (59 | ) | (41 | ) | (869 | ) | ||||||
| Earnings | $ | 91,740 | 209,768 | 181,114 | 131,641 | 241,829 | 277,481 | |||||||||||
| Fixed Charge Data: | ||||||||||||||||||
| Interest expensed and capitalized | $ | 57,765 | 124,707 | 129,837 | 128,551 | 131,009 | 118,987 | |||||||||||
| Amortized premiums, discounts and capitalized expenses related to indebtedness | 1,728 | 2,861 | 2,957 | 3,517 | 2,981 | 1,987 | ||||||||||||
| Estimate of the interest within rental expense | 1,340 | 2,680 | 2,366 | 2,420 | 1,802 | 1,982 | ||||||||||||
| Preferred stock dividends | 12,744 | 23,400 | 23,400 | 23,400 | 23,400 | 23,400 | ||||||||||||
| Total fixed charges | $ | 73,577 | 153,648 | 158,560 | 157,888 | 159,192 | 146,356 | |||||||||||
| Ratio of earnings to fixed charges | 1.2 | 1.4 | 1.1 | 0.8 | (2) | 1.5 | 1.9 | |||||||||||
(2) The Company's ratio of earnings to fixed charges was deficient in 2009 by $26.2 million, due to significant non-cash charges for impairment of real estate investments recorded in 2009 of $97.5 million.