EXHIBIT 12

 

CBRE GROUP, INC.

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

(Dollars in thousands)

 

     Year Ended December 31,  
     2011      2010     2009     2008     2007  

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

    $ 429,538       $ 272,057      $ (645 )    $ (1,025,679 )    $ 592,389   

Less: Equity income (loss) from unconsolidated subsidiaries

      104,776         26,561        (34,095 )      (80,130 )      64,939   

Income (loss) from continuing operations attributable to non-controlling interests

      6,918         (49,777 )      (60,979 )      (54,198 )      11,875   

Add: Distributed earnings of unconsolidated subsidiaries

      20,794         33,874        13,509        23,867        117,196   

Fixed charges

      219,964         272,301        278,379        236,533        220,213   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings (loss) before fixed charges

    $ 558,602       $ 601,448      $ 386,317      $ (630,951 )    $ 852,984   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

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

    $ 69,715       $ 63,002      $ 59,978      $ 69,377      $ 57,222   

Interest expense

      150,249         191,151        189,146        167,156        162,991   

Write-off of financing costs

      —           18,148        29,255        —          —     
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 219,964       $ 272,301      $ 278,379      $ 236,533      $ 220,213   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

      2.54         2.21        1.39        N/A (2)      3.87   
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

(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, 2008. Additional earnings of $867.5 million would be needed to have a one-to-one ratio of earnings to fixed charges.