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,  
     2015     2014     2013     2012     2011     2010  

Net income (loss) from continuing operations

    $ 1,030      $ (5,902 )(1)    $ 1,527      $ 3,761      $ 5,714      $ 4,928   

Add: fixed charges and preferred and senior common distributions

      26,797        33,592        31,506        26,962        21,247        21,191   

Less: preferred and senior common distributions

      (3,818 )      (4,636 )      (4,394 )      (4,206 )      (4,156 )      (4,114 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Earnings

    $ 24,009      $ 23,054      $ 28,639      $ 26,517      $ 22,805      $ 22,005   

Fixed charges and preferred and senior common distributions:

             

Interest expense (2)

      21,611        27,284        25,314        21,239        16,158        16,031   

Amortization of deferred financing fees

      1,358        1,656        1,780        1,502        918        1,031   

Estimated interest component of rent

      10        16        18        15        15        15   

Preferred and senior common distributions

      3,818        4,636        4,394        4,206        4,156        4,114   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred and senior common distributions

    $ 26,797      $ 33,592      $ 31,506      $ 26,962      $ 21,247      $ 21,191   

Ratio of earnings to combined fixed charges and preferred distributions

      N/A (3)      N/A (4)      N/A (5)      N/A (6)      1.1        1.0   

 

(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 nine months ended September 30, 2015, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $2,788.
(4) For the year ended December 31, 2014, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $10,538.
(5) For the year ended December 31, 2013, earnings, as defined, were insufficient to cover fixed charges and preferred and common distributions by $2,867.
(6) 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, 2010 to 2014 and for the nine months ended September 30, 2015.