Exhibit 12
Ratio of Earnings to Combined Fixed Charges and Preference Dividends(1)
December 31,
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(DOLLARS IN THOUSANDS) 2007 2006 2005 2004 2003
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Fixed charges:
Interest expense on indebtedness $ 42,302 $ 19,149 $ 7,057 $ 4,017 $ 2,548
Preference security dividend requirements of
consolidated subsidiaries 2,216 2,241 1,452 -- --
Amortization of capitalized costs related to
indebtedness 785 121 228 287 195
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Total fixed charges $ 45,303 $ 21,511 $ 8,737 $ 4,304 $ 2,743
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Earnings:
Net (loss) income from continuing operations $ (62,113) $ 2,432 $ 15,035 $ 9,373 $ 11,425
Add: Total fixed charges 45,303 21,511 8,737 4,304 2,743
Add: Distributed income from equity investees 337 4,037 2,400 2,400 2,400
Less: Income from equity investees (337) (3,000) (2,837) (2,400) (2,400)
Less: Preference security dividend
requirements of consolidated subsidiaries (2,216) (2,241) (1,452) -- --
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Total earnings $ 19,026 $ 22,739 $ 21,883 $ 13,677 $ 14,168
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Ratio of Earnings to Fixed Charges 0.4(2) 1.1 2.5 3.2 5.2
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(1) For the purposes of computing the ratio of earnings to fixed charges and
preference dividends, earnings were calculated using (loss) income from
continuing operations adding back total fixed charges and distributions
from equity investees less preference security dividend requirements of
consolidated subsidiaries and income realized from equity investees. Fixed
charges consist of interest expense, recurring fees and amortization of
capitalized costs related to indebtedness and preference security dividend
requirements of consolidated subsidiaries.
(2) Earnings were insufficient to cover fixed charges by $64.3 million during
this period due to the incurrence of a net loss from continuing operations,
which was impacted by losses resulting from the sale of certain assets,
impairments recorded on mortgage loans, losses incurred upon the
termination of interest rate swaps and expenses related to changes in the
fair value of certain interest rate swaps to which we do not apply hedge
accounting