WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)

Earnings to fixed charges ratio:
 
Q2 2012
 
Q2 2011
 
YTD 2012
 
YTD 2011
Income from continuing operations
$
6,008

 
$
4,431

 
$
11,189

 
$
6,550

Additions:
 
 
 
 
 
 
 
   Fixed charges
 
 
 
 
 
 
 
       Interest expense
15,533

 
16,865

 
31,428

 
33,758

       Capitalized interest
433

 
81

 
858

 
164

 
15,966

 
16,946

 
32,286

 
33,922

Deductions:
 
 
 
 
 
 
 
       Capitalized interest
(433
)
 
(81
)
 
(858
)
 
(164
)
       Net income attributable to noncontrolling interests
—

 
(34
)
 
—

 
(57
)
Adjusted earnings
$
21,541

 
$
21,262

 
$
42,617

 
$
40,251

Fixed charges (from above)
$
15,966

 
$
16,946

 
$
32,286

 
$
33,922

Ratio of earnings to fixed charges
1.35

 
1.25

 
1.32

 
1.19


Debt service coverage ratio:
 
Q2 2012
 
Q2 2011
 
YTD 2012
 
YTD 2011
Net income attributable to the controlling interests
$
6,008

 
$
6,522

 
$
11,189

 
$
11,187

Additions:
 
 
 
 
 
 
 
       Interest expense
15,533

 
17,097

 
31,428

 
34,223

       Real estate depreciation and amortization
25,591

 
25,459

 
51,585

 
50,708

       Income tax expense
158

 
1,173

 
171

 
1,173

       Real estate impairment
—

 
—

 
—

 
599

       Non-real estate depreciation
261

 
248

 
529

 
516

 
41,543

 
43,977

 
83,713

 
87,219

Deductions:
 
 
 
 
 
 
 
       Loss on extinguishment of debt
—

 
—

 
—

 
—

       Gain on sale of real estate
—

 
—

 
—

 
—

Adjusted EBITDA
$
47,551

 
$
50,499

 
$
94,902

 
$
98,406

Debt service
 
 
 
 
 
 
 
       Interest expense
$
15,533

 
$
17,097

 
$
31,428

 
$
34,223

       Principal amortization
1,447

 
1,042

 
2,900

 
2,047

 
$
16,980

 
$
18,139

 
$
34,328

 
$
36,270

Debt service coverage ratio
2.80

 
2.78

 
2.76

 
2.71