Exhibit 12

Statements re: computation of ratios

(Dollars in Thousands, Except Ratios)

 

     For the nine months
ended September 30,
2012		     For the year ended December 31,  
       2011     2010     2009     2008     2007  

Net income from continuing operations

    $ 3,147      $ 5,714      $ 4,928      $ 4,400      $ 4,873      $ 5,958   

Add: fixed charges and preferred and senior common distributions

      19,667        21,247        21,191        22,001        20,964        15,670   

Less: preferred and senior common distributions

      (3,141 )      (4,156 )      (4,114 )      (4,094 )      (4,094 )      (4,094 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

    $ 19,673      $ 22,805      $ 22,005      $ 22,307      $ 21,743      $ 17,534   

Fixed charges and preferred and senior common distributions:

             

Interest expense (1)

      15,412        16,158        16,031        16,399        15,575        10,847   

Amortization of deferred financing fees

      1,103        918        1,031        1,496        1,284        717   

Estimated interest component of rent

      11        15        15        12        11        12   

Preferred and senior common distributions

      3,141        4,156        4,114        4,094        4,094        4,094   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred and senior common distributions

    $ 19,667      $ 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 term 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.