<PAGE>
Exhibit 12.1
Prime Group Realty Trust and The Predecessor
Statements Regarding Computation of Ratios of Earnings
to Combined Fixed Charges and Preferred Share Distributions
(Dollars in Thousands)
<TABLE>
<CAPTION>
Prime Group Realty Trust - Historical
Three Months Six Months Period From
Ended Ended Year ended November 17,
June 30, June 30, December 31, 1997 through
---------------------- ---------------------- --------------------- December 31,
2000 1999 2000 1999 1999 1998 1997
---------------------- ---------------------- ------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
Income before preferred
Share distributions and
Minority interests per
the consolidated
financial statements $ 2,927 $14,916 $14,502 $22,984 $ 33,567 $30,866 $1,427
Interest expense 14,145 11,545 27,131 21,923 42,648 30,901 1,680
Amortization of debt
issuance costs 1,222 619 2,143 1,093 2,424 1,230 140
---------------------- ---------------------- ------------------------------------
Earnings $18,294 $27,080 $43,776 $46,000 $ 78,639 $62,997 $3,247
====================== ====================== ===================================
Fixed charges:
Interest expense $14,145 $11,545 $27,131 $21,923 $ 42,648 $30,901 $1,680
Capitalization of
interest expense 1,744 1,607 4,668 2,994 7,986 2,498 -
Amortization of debt
Issuance costs 1,222 619 2,143 1,093 2,424 1,230 140
Preferred share
Distributions 3,037 3,030 6,074 6,030 12,103 7,971 345
---------------------- ---------------------- ------------------------------------
Total fixed charges $20,148 $16,801 $40,016 $32,040 $ 65,161 $42,600 $2,165
====================== ====================== ===================================
Ratio of earnings to
combined fixed charges
and preferred share
distributions - 1.61 1.09 1.44 1.21 1.48 1.50
====================== ====================== ===================================
Excess/(deficit) of earnings to
combined fixed charges
and preferred share
distributions ($1,854) $10,279 $3,760 $13,960 $ 13,478 $20,397 $1,082
====================== ====================== ===================================
Funds from operations:
Funds from operations(1) $13,840 $15,863 $29,154 28,509 $ 53,983 $47,996 $3,439
Interest expense 14,145 11,545 27,131 21,923 42,648 30,901 1,680
Amortization of debt
issuance costs 1,222 619 2,143 1,093 2,424 1,230 140
Preferred share
distributions 3,037 3,030 6,074 6,030 12,103 7,971 345
---------------------- ---------------------- ------------------------------------
Adjusted funds from
operations $32,244 $31,057 $64,502 $57,555 $111,158 $88,098 $5,604
====================== ====================== ===================================
Fixed charges:
Interest expense $14,145 $11,545 $27,131 $21,923 $ 42,648 $30,901 $1,680
Capitalization of
interest expense 1,744 1,607 4,668 2,994 7,986 2,498 -
Amortization of debt
issuance costs 1,222 619 2,143 1,093 2,424 1,230 140
Preferred share
distributions 3,037 3,030 6,074 6,030 12,103 7,971 345
---------------------- ---------------------- ------------------------------------
Total fixed charges $20,148 $16,801 $40,016 $32,040 $ 65,161 $42,600 $2,165
====================== ====================== ===================================
Ratio of funds from Operations
to combined fixed charges and
preferred share distributions 1.60 1.85 1.61 1.80 1.71 2.07 2.59
====================== ====================== ===================================
Excess of funds from
operations to combined
fixed charges and
preferred share
distributions $12,096 $14,256 $24,486 $25,515 $ 45,997 $45,498 $3,439
====================== ====================== ===================================
</TABLE>
(1) Funds from operations for the three and six months ended June 30, 1999 and
for the years ended December 31, 1999 and 1998, and for the period from
November 17, 1997 through December 31, 1997 have been restated in
accordance with standards established by the Board of Governors of NAREIT
in its 1999 White Paper, which results in the exclusion of certain non
recurring items and the inclusion of the effects of straight line rental
revenue. Years and periods prior to November 17, 1997 have not been
restated due to the unavailability of certain required information.
<PAGE>
Exhibit 12.1
Prime Group Realty Trust and The Predecessor
Statements Regarding Computation of Ratios of Earnings
to Combined Fixed Charges and Preferred Share Distributions
(Dollars in Thousands)
<TABLE>
<CAPTION>
Predecessor - Historical
---------------------------------------------------
Period from
January 1, 1999 Year ended
through November 16, December 31,
---------------------------------
1997 1996 1995
---------------------------------------------------
<S> <C> <C> <C>
Earnings:
Loss before preferred share distributions and minority
interests per the combined financial statements $(29,050) $(31,417) $(29,576)
Interest expense 34,417 37,217 36,234
Amortization of debt issuance costs 630 594 1,148
---------------------------------------------------
Earnings $ 5,997 $ 6,394 $ 7,806
===================================================
Fixed charges:
Interest expense $ 34,417 $ 37,217 $ 36,234
Capitalization of interest expense - - -
Amortization of debt issuance costs 630 594 1,148
Preferred share distributions - - -
---------------------------------------------------
Total fixed charges $ 35,047 $ 37,811 $ 37,382
===================================================
Ratio of earnings to combined fixed charges and preferred share
distributions - - -
===================================================
Deficit of earnings to combined fixed charges and preferred share
distributions $(29,050) $(31,417) $(29,576)
===================================================
Funds from operations:
Funds from operations $(14,461) $(17,367) $(12,733)
Interest expense 34,417 37,217 36,234
Amortization of debt issuance costs 630 594 1,148
Preferred share distributions - - -
---------------------------------------------------
Adjusted funds from operations $ 20,586 $ 20,444 $ 24,649
===================================================
Fixed charges:
Interest expense $ 34,417 $ 37,217 $ 36,234
Capitalization of interest expense - - -
Amortization of debt issuance costs 630 594 1,148
Preferred share distributions - - -
---------------------------------------------------
Total fixed charges $ 35,047 $ 37,811 $ 37,382
===================================================
Ratio of funds from operations to combined fixed charges and
preferred share distributions - - -
===================================================
Deficit of funds from operations to combined fixed charges and
preferred share distributions $(14,461) $(17,367) $(12,733)
===================================================
</TABLE>
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