EXHIBIT 12

CB RICHARD ELLIS GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(dollars in thousands)

 

     Year Ended December 31,     Six Months Ended June 30,  
     2004    2005    2006    2007    2008     2008     2009  

Income (loss) from continuing operations before provision for income taxes (1)

    $ 108,254    $ 356,222    $ 516,897    $ 580,514    $ (971,481 )    $ 63,809      $ (50,667 ) 

Less: Equity income (loss) from unconsolidated subsidiaries

      20,977      38,425      33,300      64,939      (80,130 )      (22,514 )      (11,940 ) 

Add: Distributed earnings of unconsolidated subsidiaries

      11,502      24,997      29,384      117,196      23,867        14,737        5,830   

Fixed charges

      126,190      103,995      120,963      220,213      236,533        116,215        146,160   
                                                    

Total earnings (loss) before fixed charges

    $ 224,969    $ 446,789    $ 633,944    $ 852,984    $ (630,951 )    $ 217,275      $ 113,263   
                                                    

Fixed charges:

                   

Portion of rent expense representative of the interest factor (2)

    $ 37,035    $ 40,328    $ 42,109    $ 57,222    $ 69,377      $ 31,650      $ 34,689   

Interest expense

      68,080      56,281      45,007      162,991      167,156        84,565        82,216   

Write-off of financing costs

      21,075      7,386      33,847      —      —        —        29,255   
                                                    

Total fixed charges

    $ 126,190    $ 103,995    $ 120,963    $ 220,213    $ 236,533      $ 116,215      $ 146,160   
                                                    

Ratio of earnings to fixed charges

      1.78      4.30      5.24      3.87      N/A (3)      1.87        N/A (3) 
                                                    

 

(1) Excludes pre-tax income (loss) attributable to non-controlling interests.
(2) Represents one-third of operating lease costs, which approximates the portion that relates to the interest portion.
(3) The ratio of earnings to fixed charges was less than one-to-one for the year ended December 31, 2008 and the six months ended June 30, 2009. Additional earnings of $867.5 million and $32.9 million would be needed to have a one-to-one ratio of earnings to fixed charges for the year ended December 31, 2008 and the six months ended June 30, 2009, respectively.