1 EXHIBIT 12.1 CALCULATION OF RATIO OF EARNINGS TO FIXED CHARGES (DOLLARS IN THOUSANDS) AMERICAN INDUSTRIAL PROPERTIES REIT Nine Months Ended September 30 Year ended December 31, ----------------- ------------------------------------- 1997 1996 1996 1995 1994 1993 1992 ---- ---- ---- ---- ---- ---- ---- Income before gain (loss) on sales of real estate, extraordinary gain (loss) and minority interest $(2,414) $(3,069) $(4,732) $(4,338) $(4,311) $(5,121) $ (18,719) Fixed charges: Interest expense 4,015 4,566 5,901 6,485 4,851 4,664 5,394 Capitalized interest - - - - - - - Interest component of capitalized lease obligations - - - - - - - Interest related to rental expense - - - - - - - ------- ------- ------- ------- ------- ------- --------- Total fixed charges (A) 4,015 4,566 5,901 6,485 4,851 4,664 5,394 ------- ------- ------- ------- ------- ------- --------- Earnings before fixed charges (1)(B) $ 1,601 $ 1,497 $ 1,169 $ 2,147 $ 540 $ (457) $ (13,325) ------- ------- ------- ------- ------- ------- --------- Ratio of earnings to fixed charges (B divided by A) (2) (2) (3) (3) (3) (3) (3) ======= ======= ======= ======= ======= ======= ========= (1) Earnings before fixed charges excludes capitalized interest. (2) Earnings for the nine months ended September 30, 1997 and 1996 were inadequate to cover fixed charges. The deficiencies for the periods were $2,414 and $3,069, respectively. (3) Earnings for the years ended December 31, 1996, 1995, 1994, 1993 and 1992 were inadequate to cover fixed charges. The deficiencies for the periods were $4,732, $4,338, $4,311, $5,121, and $18,719, respectively.