EXHIBIT 12
CORPORATE OFFICE PROPERTIES TRUST
Ratio of earnings to combined fixed charges and preferred share dividends
(Dollars in thousands)
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Six months ended |
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Years ended December 31, |
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June 30, 2003 |
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2002 |
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2001 |
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2000 |
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1999 |
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1998 |
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Income before minority interest, income taxes, discontinued operations, extraordinary item and cumulative effect of accounting change |
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15,375 |
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29,454 |
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27,485 |
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22,229 |
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20,616 |
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8,896 |
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Loss on early retirement of debt |
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— |
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(312 |
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(213 |
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(153 |
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(903 |
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— |
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Equity in loss (income) in unconsolidated entities |
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186 |
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402 |
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84 |
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310 |
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(198 |
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(139 |
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Distributed income of equity investees |
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— |
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295 |
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104 |
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— |
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— |
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— |
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Fixed charges (from below) |
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40,317 |
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57,860 |
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49,740 |
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42,119 |
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30,735 |
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16,465 |
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Capitalized interest (from below) |
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(1,306 |
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(3,091 |
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(5,295 |
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(3,889 |
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(1,510 |
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(77 |
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Preferred share dividends included in fixed charges |
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(5,067 |
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(10,134 |
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(6,857 |
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(3,802 |
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(2,854 |
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(327 |
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Preferred unit distributions included in fixed charges |
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(1,049 |
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(2,287 |
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(2,287 |
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(2,240 |
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(2,620 |
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(3,412 |
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Repurchase of preferred units in excess of recorded book value |
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(11,224 |
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— |
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— |
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— |
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— |
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— |
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Total earnings |
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37,232 |
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72,187 |
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62,761 |
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54,574 |
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43,266 |
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21,406 |
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Fixed charges and preferred dividends: |
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Interest expense on continuing operations |
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20,172 |
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39,067 |
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32,289 |
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29,786 |
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21,190 |
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11,994 |
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Interest expense on discontinued operations |
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100 |
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291 |
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484 |
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668 |
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618 |
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213 |
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Capitalized interest |
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1,306 |
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3,091 |
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5,295 |
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3,889 |
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1,510 |
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77 |
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Amortization of debt issuance costs-expensed |
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1,184 |
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2,189 |
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1,818 |
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1,382 |
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975 |
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423 |
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Amortization of debt issuance costs-capitalized |
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— |
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59 |
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119 |
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199 |
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35 |
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— |
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Preferred share dividends |
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5,067 |
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10,134 |
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6,857 |
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3,802 |
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2,854 |
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327 |
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Preferred unit distributions |
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1,049 |
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2,287 |
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2,287 |
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2,240 |
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2,620 |
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3,412 |
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Interest included in rental expense |
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215 |
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430 |
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378 |
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— |
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30 |
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19 |
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Loss on early retirement of debt |
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— |
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312 |
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213 |
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153 |
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903 |
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— |
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Repurchase of preferred units in excess of recorded book value |
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11,224 |
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— |
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— |
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— |
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— |
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— |
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Total fixed charges and preferred dividends |
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40,317 |
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57,860 |
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49,740 |
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42,119 |
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30,735 |
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16,465 |
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Ratio of earnings to combined fixed charges and preferred dividends |
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N/A (1 |
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1.25 |
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1.26 |
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1.30 |
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1.41 |
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1.30 |
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(1) During the six months ended June 30, 2003, the Company's fixed charges and preferred share dividends included a nonrecurring deemed distribution of $11,224 in connection with its repurchase of Series C Preferred Units in the Operating Partnership at an amount in excess of the recorded book value of the units. As a result, earnings were inadequate to cover fixed charges and preferred share dividends by approximately $3,085 in the six months ended June 30, 2003.