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EXHIBIT 12
FIRST UNION REAL ESTATE EQUITY AND MORTGAGE INVESTMENTS AND
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FIRST UNION MANAGEMENT, INC.
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STATEMENTS OF RATIOS OF COMBINED INCOME FROM OPERATIONS
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AND COMBINED NET INCOME TO FIXED CHARGES
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(IN THOUSANDS, EXCEPT RATIOS)
3 Months Ended
March 31, Years Ended December 31,
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1997 1996 1996 1995 1994 1993 1992
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Income (loss) before capital gain or
loss, extraordinary loss and
cumulative effect of accounting
change $ 2,178 $ (877) $ 4,422 $ 3,256 $ 6,485 $10,276 $12,657
Add fixed charges, exclusive of
construction interest capitalized 5,404 5,869 24,018 22,987 21,865 19,103 19,469
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Income from operations, as defined 7,582 4,992 28,440 26,243 28,350 29,379 32,126
Capital gains --- --- --- 29,870 --- 4,948 5,775
Reduction for unrealized loss on
carrying value of assets
identified for disposition --- --- --- ( 14,000) --- --- ---
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Net income, as defined $ 7,582 $ 4,992 $28,440 $42,113 $28,350 $34,327 $37,901
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Fixed charges:
Interest
- Mortgage loans $ 2,426 $ 1,825 $ 8,877 $ 7,670 $ 7,335 $ 5,777 $ 6,182
- Senior notes 2,219 2,326 9,090 9,305 9,305 5,779 4,199
- 10.25% debentures --- --- --- --- --- 3,214 3,858
- Bank loans and other 611 1,568 5,459 5,422 4,640 3,747 4,694
- Capitalized interest --- 81 121 169 --- --- ---
Amortization of debt issue costs 52 49 196 184 168 162 122
Rents (1) 96 101 396 406 417 424 414
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Fixed charges, as defined $ 5,404 $ 5,950 $24,139 $23,156 $21,865 $19,103 $19,469
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Preferred dividend accrued $ 1,208 $ --- $ 845 $ --- $ --- $ --- $ ---
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Ratio of income from operations, as
defined, to fixed charges 1.40 .84 1.18 1.13 1.30 1.54 1.65
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Ratio of net income, as defined,
to fixed charges 1.40 .84 1.18 1.82 1.30 1.80 1.95
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Ratio of net income from operations
as defined, to fixed charges and
preferred dividend 1.15 .84 1.14 1.82 1.30 1.80 1.95
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<FN>
(1) The interest portion of rentals is assumed to be one-third of all ground
rental and net lease payments.
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