Exhibit 12

Statements re: computation of ratio of earnings to combined fixed charges and preferred distributions

(Dollars in Thousands)

 

     For the nine months
ended September 30,
    For the year ended December 31,  
     2014     2013     2012     2011     2010     2009  

Net (loss) income from continuing operations (1)

   $ (12,066   $ 1,527      $ 3,761      $ 5,714      $ 4,928      $ 4,400   

Add: fixed charges and preferred and senior common distributions

     24,950        31,506        26,962        21,247        21,191        22,001   

Less: preferred and senior common distributions

     (3,417     (4,394     (4,206     (4,156     (4,114     (4,094
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings

   $ 9,467      $ 28,639      $ 26,517      $ 22,805      $ 22,005      $ 22,307   

Fixed charges and preferred and senior common distributions:

            

Interest expense (2)

     20,311        25,314        21,239        16,158        16,031        16,399   

Amortization of deferred financing fees

     1,209        1,780        1,502        918        1,031        1,496   

Estimated interest component of rent

     13        18        15        15        15        12   

Preferred and senior common distributions

     3,417        4,394        4,206        4,156        4,114        4,094   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total fixed charges and preferred and senior common distributions

   $ 24,950      $ 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 $14.2 million impairment recorded during the nine months ended September 30, 2014.
(2) Interest expense includes dividends paid on our mandatorily redeemable term preferred stock.
(3) For the nine months ended September 30, 2014, earnings, as defined, were insufficient to cover fixed charges by $15,483.
(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 nine months ended September 30, 2014.