Exhibit 12
Statements re: computation of ratio of earnings to combined fixed charges and preferred
distributions
(Dollars in Thousands) 
 
 
For the six months ended June 30,
 
For the year ended December 31,
 
 
2016
 
2015
 
2014
 
2013
 
2012
 
2011
Net income (loss) from continuing operations
 
$
(1,056
)
 
$
3,596

 
$
(5,902
)
(1) 
$
1,527

 
$
3,761

 
$
5,714

Add: fixed charges and preferred and senior common distributions
 
17,483

 
35,871

 
33,592

 
31,506

 
26,962

 
21,247

Less: preferred and senior common distributions
 
(2,794
)
 
(5,101
)
 
(4,636
)
 
(4,394
)
 
(4,206
)
 
(4,156
)
Earnings
 
$
13,633

 
$
34,366

 
$
23,054

 
$
28,639

 
$
26,517

 
$
22,805

Fixed charges and preferred and senior common distributions:
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense (2)
 
13,592

 
28,802

 
27,284

 
25,314

 
21,239

 
16,158

Amortization of deferred financing fees
 
1,090

 
1,955

 
1,656

 
1,780

 
1,502

 
918

Estimated interest component of rent
 
7

 
13

 
16

 
18

 
15

 
15

Preferred and senior common distributions
 
2,794

 
5,101

 
4,636

 
4,394

 
4,206

 
4,156

Total fixed charges and preferred and senior common distributions
 
$
17,483

 
$
35,871

 
$
33,592

 
$
31,506

 
$
26,962

 
$
21,247

Ratio of earnings to combined fixed charges and preferred distributions
 
N/A

(3)
N/A

(4)
N/A

(5)
N/A

(6)
N/A

(7)
1.1

 
(1)
We recognized a $14.2 million impairment loss and a $5.3 million gain on debt extinguishment as a result of our Roseville, MN deed-in-lieu transaction during the year ended December 31, 2014.
(2)
Interest expense includes dividends paid on our mandatorily redeemable term preferred stock.
(3)
For the six months ended June 30, 2016, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $3,850.
(4)
For the year ended December 31, 2015, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $1,505.
(5)
For the year ended December 31, 2014, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $10,538.
(6)
For the year ended December 31, 2013, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $2,867.
(7)
For the year ended December 31, 2012, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions 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, 2011 to 2015 and for the six months ended months ended June 30, 2016.