Exhibit 12.1
WASHINGTON REAL ESTATE INVESTMENT TRUST
Computation of Ratios
(In thousands)
Earnings to fixed charges ratio:
| Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||||
| 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||||||||||||||||||||||
| Income (loss) from continuing operations |
$ | 19,612 | $ | 119,288 | $ | 89,187 | $ | 5,070 | $ | (193 | ) | |||||||||||||||||||||||||||||
| Additions: |
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| Fixed charges: |
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| Interest expense |
47,534 | 53,126 | 59,546 | 59,785 | 63,573 | |||||||||||||||||||||||||||||||||||
| Capitalized interest |
964 | 668 | 658 | 2,142 | 1,236 | |||||||||||||||||||||||||||||||||||
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| 48,498 | 53,794 | 60,204 | 61,927 | 64,809 | ||||||||||||||||||||||||||||||||||||
| Deductions: |
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| Capitalized interest |
(964 | ) | (668 | ) | (658 | ) | (2,142 | ) | (1,236 | ) | ||||||||||||||||||||||||||||||
| Net loss (income) attributable to noncontrolling interests |
56 | 51 | 553 | 38 | — | |||||||||||||||||||||||||||||||||||
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| Adjusted earnings |
$ | 67,202 | $ | 172,465 | $ | 149,286 | $ | 64,893 | $ | 63,380 | ||||||||||||||||||||||||||||||
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| Fixed charges (from above) |
$ | 48,498 | $ | 53,794 | $ | 60,204 | $ | 61,927 | $ | 64,809 | ||||||||||||||||||||||||||||||
| Ratio of earnings to fixed charges |
(1) | 1.39 | (1) | 3.21 | (1) | 2.48 | (1) | 1.05 | (2) | 0.98 | ||||||||||||||||||||||||||||||
| (1) | The earnings to fixed charges ratios for the three months ended December 31, 2017 and the years ended December 31, 2017, 2016, 2015 and 2014 include gains on sale of real estate of $24.9 million, $24.9 million, $101.7 million, $91.1 million and $0.6 million, respectively, classified as continuing operations. Prior to our adoption of Accounting Standards Update 2014-08 effective January 1, 2014, gains from the sale of real estate were classified as discontinued operations. |
| (2) | Due to the loss from continuing operations, the ratio was less than 1:1. Washington REIT must generate additional earnings of $1.4 million to achieve a ratio of 1:1. |