EXHIBIT 12
HIGHWOODS PROPERTIES, INC.
NOTES TO PRO FORMA STATEMENTS OF OPERATIONS (UNAUDITED) -- CONTINUED
2. ADJUSTMENTS TO THE UNAUDITED PRO FORMA CONDENSED COMBINING STATEMENT OF
OPERATIONS
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
PERIOD FROM
NINE MONTHS ENDED JUNE 14, 1994
SEPTEMBER 31, TO DECEMBER 31,
1997 1996 1995 1994 1993 1992
Earnings(1)(2)
Income (loss) from continuing operations....... $61,703 $48,242 $28,934 $ 8,159 $(155) $(239)
Interest....................................... 33,082 24,699 12,101 4,955 5,185 5,059
Amortization of loan costs..................... 1,689 1,911 1,619 738 -- --
Total Earnings................................. $96,474 $74,852 $42,654 $13,852 $5,030 $4,820
Fixed charges and preferred stock dividends (2)
Interest....................................... $33,082 $24,699 $12,101 $ 4,955 $5,185 $5,059
Interest capitalized........................... 3,779 2,935 507 17 16 --
Amortization of loan costs expensed............ 1,689 1,911 1,619 738 -- --
Amortization of loan costs capitalized......... -- -- -- -- -- --
Total fixed charges............................ $38,550 $29,545 $14,227 $ 5,710 $5,201 $5,059
Preferred stock dividends...................... 6,972 -- -- -- -- --
Ratio of earnings to fixed charges............. 2.50x 2.53x 3.00x 2.43x --(3) --(4)
Ratio of earnings to combined fixed charges and
preferred stock dividends.................... 2.12x 2.53x 3.00x 2.43x --(3) --(4)
(1) The calculation does not include amortization of previously capitalized
interest.
(2) On February 12, 1997, the Company issued 125,000 8 5/8% Series A Preferred
Shares, which was its first issuance of preferred stock. On September 25,
1997, the Company issued 6,900,000 8% Series B Preferred Shares, which was
its second issuance of preferred stock.
(3) Earnings were inadequate to cover fixed charges by $171,000 for the year
ended December 31, 1993.
(4) Earnings were inadequate to cover fixed charges by $239,000 for the year
ended December 31, 1992.
F-11