Exhibit 12

Statements re: computation of ratios

(Dollars in Thousands, Except Ratios)

 

           For the year ended December 31,  
     For the six months
ended June 30, 2012		     2011     2010     2009     2008     2007  

Net income from continuing operations

    $ 2,155      $ 5,714      $ 4,928      $ 4,400      $ 4,873      $ 5,958   

Add: fixed charges and preferred and senior common distributions

      12,698        21,247        21,191        22,001        20,964        15,670   

Less: preferred and senior common distributions

      (2,088 )      (4,156 )      (4,114 )      (4,094 )      (4,094 )      (4,094 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

    $ 12,765      $ 22,805      $ 22,005      $ 22,307      $ 21,743      $ 17,534   

Fixed charges and preferred and senior common distributions:

             

Interest expense (1)

      9,899        16,158        16,031        16,399        15,575        10,847   

Amortization of deferred financing fees

      703        918        1,031        1,496        1,284        717   

Estimated interest component of rent

      8        15        15        12        11        12   

Preferred and senior common distributions

      2,088        4,156        4,114        4,094        4,094        4,094   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred and senior common distributions

    $ 12,698      $ 21,247      $ 21,191      $ 22,001      $ 20,964      $ 15,670   

Ratio of earnings to combined fixed charges and preferred distributions

      1.0        1.1        1.0        1.0        1.0        1.1   

 

(1)

Interest expense includes dividends paid on our mandatorily redeemable preferred stock.

The calculation of the ratio of earnings to combined fixed charges and preferred distributions is above. “Earnings” consist of net income from continuing operations 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 Adviser as part of the administration fee payable under the Advisory Agreement, by three.