Exhibit 12
Statements re: computation of ratios
(Dollars in Thousands)
| For the six months ended June 30, |
For the year ended December 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | |||||||||||||||||||
| Net income from continuing operations(1) |
$ | (12,297 | ) | $ | 1,527 | $ | 3,761 | $ | 5,714 | $ | 4,928 | $ | 4,400 | |||||||||||
| Add: fixed charges and preferred and senior common distributions |
16,423 | 31,506 | 26,962 | 21,247 | 21,191 | 22,001 | ||||||||||||||||||
| Less: preferred and senior common distributions |
(2,257 | ) | (4,394 | ) | (4,206 | ) | (4,156 | ) | (4,114 | ) | (4,094 | ) | ||||||||||||
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| Earnings |
$ | 1,869 | $ | 28,639 | $ | 26,517 | $ | 22,805 | $ | 22,005 | $ | 22,307 | ||||||||||||
| Fixed charges and preferred and senior common distributions: |
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| Interest expense(2) |
13,361 | 25,314 | 21,239 | 16,158 | 16,031 | 16,399 | ||||||||||||||||||
| Amortization of deferred financing fees |
795 | 1,780 | 1,502 | 918 | 1,031 | 1,496 | ||||||||||||||||||
| Estimated interest component of rent |
10 | 18 | 15 | 15 | 15 | 12 | ||||||||||||||||||
| Preferred and senior common distributions |
2,257 | 4,394 | 4,206 | 4,156 | 4,114 | 4,094 | ||||||||||||||||||
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| Total fixed charges and preferred and senior common distributions |
$ | 16,423 | $ | 31,506 | $ | 26,962 | $ | 21,247 | $ | 21,191 | $ | 22,001 | ||||||||||||
| Ratio of earnings to combined fixed charges and preferred distributions |
N/A | (3) | N/A | (4) | N/A | (5) | 1.1 | 1.0 | 1.0 | |||||||||||||||
| (1) | Net income from continuing operations includes a $14.0 million impairment recorded during the three months ended March 31, 2014. |
| (2) | Interest expense includes dividends paid on our mandatorily redeemable term preferred stock. |
| (3) | For the six months ended June 30, 2014, earnings, as defined, were insufficient to cover fixed charges by $14,554 |
| (4) | For the year ended December 31, 2013, earnings, as defined, were insufficient to cover fixed charges by $2,867. |
| (5) | For the year ended December 31, 2012, earnings, as defined, were insufficient to cover fixed charges by $445. |
N/A: Not Applicable
The calculation of the ratio of earnings to combined fixed charges and preferred distributions is above. “Earnings” consist of net income from continuing operations and before fixed charges. “Fixed charges” consist of interest expense, amortization of deferred financing fees and the portion of operating lease expense that represents interest. The portion of operating lease expense that represents interest is calculated by dividing the amount of rent expense, allocated to us by our Administrator as part of the administration fee payable under the Administration Agreement, by three, for the years ended December 31, 2009 to 2013 and for the six months ended June 30, 2014.