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Exhibit 12
PARKWAY PROPERTIES, INC
RATIO OF EARNINGS TO FIXED CHARGES
FOR PARKWAY SERIES B CUMULATIVE PREFERRED STOCK PROSPECTUS SUPPLEMENT
<TABLE>
<CAPTION>
Six Months Ended Year Ended Year Ended
6/30/00 12/31/99 12/31/98
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<S> <C> <C> <C>
Net income $19,258,613.68 $20,530,063.85 $23,512,046.67
Adjustments:
Gains on securities (580,952.75) 0.00 0.00
Gains on mortgage loans and REO (8,891,487.31) (795,286.53) (4,788,155.39)
Income tax provision 123,000.00 0.00 0.00
Fixed charges 14,943,626.17 25,907,348.18 18,714,013.04
-------------- -------------- --------------
Total earnings for calculation $24,852,799.79 $45,642,125.50 $37,437,904.32
Divided by
Fixed charges $14,943,626.17 $25,907,348.18 $18,714,013.04
-------------- -------------- --------------
Ratio of earnings to fixed charges 1.66 1.76 2.00
============== ============== ==============
Fixed charges consist of:
Interest expense on REO properties $ 7,861,720.51 $15,182,114.22 $11,511,966.81
Interest expense on bank debt 3,363,039.70 3,583,452.42 3,389,961.61
Interest expense on wrap notes 0.00 0.00 0.00
Capitalized Interest 519,626.20 660,501.51 0.00
Amortization of loan costs - REO 80,243.57 163,873.58 147,746.73
Amortization of loan costs - bank lines 220,558.37 520,530.85 959,125.00
Preferred stock dividend 2,898,437.82 5,796,875.60 2,705,212.89
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Total fixed charges $14,943,626.17 $25,907,348.18 $18,714,013.04
============== ============== ==============
<CAPTION>
Year Ended Year Ended Year Ended
12/31/97 12/31/96 12/31/95
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<S> <C> <C> <C>
Net income $14,491,087.47 $14,371,234.79 $11,819,696.12
Adjustments:
Gains on securities 0.00 (548,660.23) (4,314,452.33)
Gains on mortgage loans and REO (2,907,367.66) (9,909,498.34) (6,551,870.73)
Income tax provision 0.00 102,500.00 82,482.00
Fixed charges 6,577,650.27 4,357,533.20 2,521,791.88
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Total earnings for calculation $18,161,370.08 $ 8,373,109.42 $ 3,557,646.94
Divided by
Fixed charges $ 6,577,650.27 $ 4,357,533.20 $ 2,521,791.88
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Ratio of earnings to fixed charges 2.76 1.92 1.41
============== ============== ==============
Fixed charges consist of:
Interest expense on REO properties $ 5,485,581.24 $ 3,525,651.18 $ 2,230,491.59
Interest expense on bank debt 809,983.04 281,263.93 156,182.33
Interest expense on wrap notes 0.00 340,352.97 135,117.96
Capitalized Interest 0.00 0.00 0.00
Amortization of loan costs - REO 95,163.58 0.00 0.00
Amortization of loan costs - bank lines 186,922.41 72,025.12 0.00
Preferred stock dividend 0.00 138,240.00 0.00
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Total fixed charges $ 6,577,650.27 $ 4,357,533.20 $ 2,521,791.88
============== ============== ==============
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