Exhibit 12.1

Corporate Office Properties Trust

Ratio of Earnings to Combined Fixed Charges and Preferred Share Dividends
(Dollars in thousands)

 

 

Six Months

 

 

 

 

 

Ended

 

Years Ended December 31,

 

 

 

6/30/2006

 

2005

 

2004

 

2003

 

2002

 

2001

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before equity in loss of unconsolidated entities, income taxes and minority interests

 

$

19,550

 

$

40,881

 

$

42,959

 

$

33,853

 

$

25,304

 

$

23,900

 

Gain (loss) on sales of real estate, excluding discontinued operations

 

160

 

366

 

(150

)

472

 

2,564

 

1,618

 

Combined fixed charges and preferred share dividends (from below)

 

51,162

 

85,240

 

70,627

 

71,541

 

57,894

 

49,765

 

Amortization of capitalized interest

 

218

 

339

 

288

 

256

 

197

 

88

 

Distributed (loss) income of equity investees

 

(59

)

(164

)

(83

)

(181

)

295

 

104

 

Subtract:

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest (from below)

 

(6,643

)

(9,871

)

(5,112

)

(2,846

)

(3,091

)

(5,295

)

Preferred share dividends included in fixed charges

 

(7,307

)

(14,615

)

(16,329

)

(12,003

)

(10,134

)

(6,857

)

Preferred unit distributions included in fixed charges

 

(330

)

(660

)

(179

)

(1,049

)

(2,287

)

(2,287

)

Repurchase of preferred units in excess of recorded book value

 

 

 

 

(11,224

)

 

 

Issuance costs associated with redeemed preferred shares

 

 

 

(1,813

)

 

 

 

Total earnings

 

$

56,751

 

$

101,516

 

$

90,208

 

$

78,819

 

$

70,742

 

$

61,036

 

Combined fixed charges and preferred share dividends:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on continuing operations

 

$

35,017

 

$

55,297

 

$

42,354

 

$

39,014

 

$

36,847

 

$

30,033

 

Interest expense on discontinued operations

 

334

 

1,847

 

1,909

 

2,165

 

2,509

 

2,748

 

Capitalized interest (internal and external)

 

6,643

 

9,871

 

5,112

 

2,846

 

3,091

 

5,295

 

Amortization of debt issuance costs-expensed

 

1,168

 

2,240

 

2,431

 

2,767

 

2,501

 

2,031

 

Amortization of debt issuance costs-capitalized

 

111

 

272

 

113

 

 

59

 

119

 

Interest included in rental expense

 

252

 

438

 

387

 

473

 

466

 

395

 

Preferred share dividends

 

7,307

 

14,615

 

16,329

 

12,003

 

10,134

 

6,857

 

Preferred unit distributions

 

330

 

660

 

179

 

1,049

 

2,287

 

2,287

 

Repurchase of preferred units in excess of recorded book value

 

 

 

 

11,224

 

 

 

Issuance costs associated with redeemed preferred shares

 

 

 

1,813

 

 

 

 

Total combined fixed charges and preferred share dividends

 

$

51,162

 

$

85,240

 

$

70,627

 

$

71,541

 

$

57,894

 

$

49,765

 

Ratio of earnings to combined fixed charges and preferred share dividends

 

1.11

 

1.19

 

1.28

 

1.10

 

1.22

 

1.23