Exhibit 12

Statements re: computation of ratios

(Dollars in Thousands, Except Ratios)

 

    For the three months
ended March 31, 2013		     For the year ended December 31,
(Dollars in Thousands, Except Per Share Amounts)		  
    2013     2012     2011     2010     2009     2008  

Net income from continuing operations

   $ 433      $ 3,761      $ 5,714      $ 4,928      $ 4,400      $ 4,873   

Add: fixed charges and preferred and senior common distributions

     7,427        26,962        21,247        21,191        22,001        20,964   

Less: preferred and senior common distributions

     (1,076 )      (4,206 )      (4,156 )      (4,114 )      (4,094 )      (4,094 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

   $ 6,784      $ 26,517      $ 22,805      $ 22,005      $ 22,307      $ 21,743   

Fixed charges and preferred and senior common distributions:

            

Interest expense (1)

     5,942        21,239        16,158        16,031        16,399        15,575   

Amortization of deferred financing fees

     405        1,502        918        1,031        1,496        1,284   

Estimated interest component of rent

     4        15        15        15        12        11   

Preferred and senior common distributions

     1,076        4,206        4,156        4,114        4,094        4,094   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred and senior common distributions

   $ 7,427      $ 26,962      $ 21,247      $ 21,191      $ 22,001      $ 20,964   

Ratio of earnings to combined fixed charges and preferred distributions

     0.9  (2)      1.0  (3)      1.1        1.0        1.0        1.0   

 

(1)

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

(2)

Note for the three months ended March 31, 2013, earnings, as defined, were insufficent to cover fixed charges by $643.

(3)

Note for the year ended December 31, 2012, earnings, as defined, were insufficent to cover fixed charges by $445.

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.