EXHIBIT 12
CORNERSTONE REALTY INCOME TRUST, INC.
RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DISTRIBUTIONS
1995 1996 1997 1998
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Net Income available to common shareholders $5,229,715 $(4,169,849) $19,225,553 $23,225,335
(before minority interests)
ADD:
Fixed charges 311,824 1,474,643 7,657,173 12,752,799
Preferred stock distributions - - - -
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Earnings 5,541,539 (2,695,206) 26,882,726 35,978,134
Fixed charges and preferred stock distributions
Interest on indebtedness 248,120 1,336,419 7,348,517 12,315,102
Amortization of loan costs 43,983 91,592 212,802 272,795
Portion of rents representative of interest factor 19,721 46,632 95,854 164,902
Capitalized interest - - - -
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Fixed Charges 311,824 1,474,643 7,657,173 12,752,799
Preferred stock distributions - - - -
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Combined fixed charges and preferred distributions 311,824 1,474,643 7,657,173 12,752,799
Ratio of earnings to combined fixed charges and
preferred stock distributions 17.77 (a) 3.51 2.82
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Ratio of earnings to fixed charges 17.77 (a) 3.51 2.82
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Supplemental
Pro Forma
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1999 1999
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Net Income available to common shareholders $17,798,227 $3,218,280
(before minority interests)
ADD:
Fixed charges 15,523,117 16,696,450
Preferred stock distributions 12,323,538 29,634,683
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Earnings 45,644,882 49,549,413
Fixed charges and preferred stock distributions
Interest on indebtedness 15,039,593 16,212,926
Amortization of loan costs 306,005 306,005
Portion of rents representative of interest factor 177,519 177,519
Capitalized interest - -
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Fixed Charges 15,523,117 16,696,450
Preferred stock distributions 12,323,538 29,634,683
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Combined fixed charges and preferred distributions 27,846,655 46,331,133
Ratio of earnings to combined fixed charges and
preferred stock distributions 1.64 1.07
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Ratio of earnings to fixed charges 2.94 2.97
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(a) Earnings for the year ended December 31, 1996 were inadequate to cover fixed
charges due to management contract termination expense resulting from the
company's conversion to "self-administered" and "self-managed" status. The
amount of deficiency was $4,169,849 for the year ended December 31, 1996.
To give effect to the merger with Apple and the operations of property
acquisitions made during 1998 and 1999 by Apple and seven property acquisitions
made by Cornerstone during 1998. The pro forma data includes the historical
results of operations for the periods indicated regardless of when Cornerstone
or Apple, as the case may be, acquired such properties. As a result, the pro
forma data may not be indicative of results of operations in future periods.