GRUBB & ELLIS COMPANY
STATEMENT REGARDING COMPUTATION OF RATIOS
EXHIBIT 12
(in '000s)
Fiscal year ended
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June 30, June 30, June 30, June 30, June 30,
1993 1994 1995 1996 1997
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Earnings:
Pretax income (loss) from continuing
operations $ (57,686) $ (16,943) $ 2,004 $ 2,300 $ 10,781
Interest expense 3,548 2,538 3,017 3,034 1,453
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Total $ (54,138) $ (14,405) $ 5,021 $ 5,334 $ 12,234
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Fixed Charges:
Preferred dividend requirements (4):
Junior convertible preferred stock $ 312 $ 766 $1,036 $ 923 $ 399
Senior convertible preferred stock 686 1,728 2,498 2,372 1,032
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998 2,494 3,534 3,295 1,431
Interest expense 3,548 2,538 3,017 3,034 1,453
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Total $ 4,546 $ 5,032 $ 6,551 $ 6,329 $ 2,884
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Ratio of earnings to fixed charges (3) -- -- 1.66 1.76 8.42
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Coverage deficiency (1) $ 57,686 $ 16,943 n/a n/a n/a
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Ratio of earnings to fixed charges and
preferred stock dividends -- -- -- -- 4.24
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Coverage deficiency (2) $ 58,684 $ 19,437 $ 1,530 $ 995 n/a
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(1) The Company's earnings were insufficient to cover its fixed charges for the
fiscal years ended June 30, 1993 and 1994, by the amounts indicated.
(2) The Company's earnings were insufficient to cover its fixed charges,
including preferred stock dividend requirements for the fiscal years ended
June 30, 1993, 1994, 1995 and 1996, by the amounts indicated.
(3) Fixed charges only includes interest expense for purposes of computing
this ratio.
(4) Dividends in 1995 and 1996 on the junior and senior convertible
preferred stock have been increased to an amount representing the pretax
earnings which would be required to cover such dividend requirements.
This adjustment is not required in 1995, 1994, and 1997 as the Company's
effective tax rate reflected a tax benefit.