EXHIBIT 12 VORNADO REALTY L.P. CONSOLIDATED RATIOS OF EARNINGS TO FIXED CHARGES AND COMBINED FIXED CHARGES AND PREFERRED UNIT DISTRIBUTION REQUIREMENTS December 31, ----------------------------------------------------------------------- 1998 1997 1996 1995 1994 --------- --------- ---------- --------- ---------- Income from continuing operations before income taxes $ 131,164 $ 45,474 $ 61,364 $ 53,008 $ 41,240 Fixed charges 139,765 59,104 17,214 17,333 16,229 --------- --------- --------- --------- --------- Income from continuing operations before income taxes and fixed charges $ 270,929 $ 104,578 $ 78,578 $ 70,341 $ 57,469 ========= ========= ========= ========= ========= Fixed charges: Interest and debt expense $ 114,686 $ 42,888 $ 16,726 $ 16,426 $ 14,209 Preferred unit distribution 21,690 15,549 -- -- -- 1/3 of rent expense-- interest factor 1,979 667 488 465 438 --------- --------- --------- --------- --------- 138,355 59,104 17,214 16,891 14,647 Capitalized interest 1,410 -- -- 442 1,582 --------- --------- --------- --------- --------- $ 139,765 $ 59,104 $17,214 $ 17,333 $ 16,229 ========= ========= ========= ========= ========= Ratio of earnings to fixed charges 1.94 1.76 4.56 4.06 3.54 Note: For purposes of this calculation, earnings before fixed charges consist of earnings before income taxes plus fixed charges. Fixed charges consist of interest expense on all indebtedness (including amortization of deferred debt issuance costs) preferred stock dividends and the portion of operating lease rental expense that is representative of the interest factor (deemed to be one third of operating lease rentals). Rent Expense $ 5,937 $ 2,001 $ 1,465 $ 1,395 $ 1,313 ========= ========= ========= ========= ========= -108-