EXHIBIT 12

 

CB RICHARD ELLIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS

(Dollars in thousands)

 

     CB Richard Ellis Group
   

Predecessor Company

     Year Ended
December 31,
    Period From
February 20
(inception) to
December 31,
    Period
From
January 1
to July 20,
     Year Ended
December 31,
     2003
     2002
    2001
    2001
     2000
    1999

(Loss) income before provision for income taxes

    $ (40,980 )   $ 48,833    $ 35,442    $ (32,910 )   $ 68,139    $ 39,461

Less: Equity income from unconsolidated subsidiaries

      14,929       8,968      1,661      2,854       7,112      7,528

Add: Distributed earnings of unconsolidated subsidiaries

      11,140       10,417      2,408      2,844       8,389      12,662

Fixed charges

      113,625       83,019      38,618      31,063       59,985      56,524
    
 
  
  
 
  

Total earnings before fixed charges

    $ 68,856     $ 133,301    $ 74,807    $ (1,857 )   $ 129,401    $ 101,119
    
 
  
  
 
  

Fixed charges:

                                            

Portion of rent expense representative of the interest factor (1)

    $ 26,409     $ 22,518    $ 8,901    $ 10,760     $ 18,285    $ 17,156

Interest expense

      87,216       60,501      29,717      20,303       41,700      39,368
    
 
  
  
 
  

Total fixed charges

    $ 113,625     $ 83,019    $ 38,618    $ 31,063     $ 59,985    $ 56,524
    
 
  
  
 
  

Ratio of earnings to fixed charges

      n/a  (2)     1.61      1.94      n/a  (3)     2.16      1.79
    
 
  
  
 
  
(1) Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion.
(2) The ratio of earnings to fixed charges was negative for the year ended December 31, 2003. Additional earnings of $44.8 million would be needed to have a one-to-one ratio of earnings to fixed charges.
(3) The ratio of earnings to fixed charges was negative for the period from January 1, 2001 to July 2001. Additional earnings of $32.9 million would be needed to have a one-to-one ratio of earnings to fixed charges.