be the party that absorbs a majority of the entity’s expected losses, receives a majority of its expected returns, or both.
We have evaluated the applicability of FIN 46-R to our investments in certain restaurant joint ventures and our real estate partnership with affiliates of Clarion Lion Properties Fund and determined that these joint ventures do not meet the requirements of a variable interest entity and, therefore, consolidation of these ventures is not required.
These investments are accounted for using the equity method.
We have also evaluated the applicability of FIN 46-R to our mortgage loans receivable and determined that they are not variable interest entities.
Our investment balance in these restaurant joint ventures was approximately $7.9 million and $8.6 million at December 31, 2007 and 2006, respectively.
Our equity in earnings from these restaurant joint ventures was $2.2 million, $1.5 million and $1.3 million in 2007, 2006 and 2005, respectively.
Our investment balances and earnings from mortgage notes receivable and our real estate partnership are presented in our consolidated balance sheets and consolidated statements of operations.
From December 29, 2005 to June 5, 2006, a third party intermediary was the legal owner of Crow Canyon Commons, but we controlled the property and retained all of the economic benefit and risk associated with the property.
Accordingly, we consolidated the property and its operations beginning December 29, 2005.
On October 16, 2006, we acquired the leasehold interest in Melville Mall under a 20 year master lease.
Additionally, we loaned the owner of Melville Mall $34.2 million secured by a second mortgage on the property.
We have an option to purchase the shopping center on or after October 16, 2021 for a price of $5.0 million plus the assumption of the first mortgage and repayment of the second mortgage.
We have determined that this property is held in a variable interest entity for which we are the primary beneficiary.
Accordingly, beginning October 16, 2006, we consolidated this property and its operations.
From May 30, 2007 to October 11, 2007, a third party intermediary was the legal owner of Shoppers’ World, but we controlled the property and retained all of the economic benefit and risk associated with the property.
Accordingly, we consolidated the property and its operations beginning May 30, 2007.
Consolidated Statements of Cash Flows – Supplemental Disclosures The following table provides additional information related to the Consolidated Statements of Cash Flows:
## Table 0 ##
(1) Cash paid for income taxes for 2006 includes $4.1 million related to the sales of condominiums at Santana Row which were conducted through a TRS.
FEDERAL REALTY INVESTMENT TRUST SCHEDULE III SUMMARY OF REAL ESTATE AND ACCUMULATED DEPRECIATION - CONTINUED Three Years Ended December 31, 2011 Reconciliation of Accumulated Depreciation and Amortization (in thousands)
## Table 1 ##
GAAP measure that means net income or loss plus net interest expense, income taxes, depreciation and amortization, gain or loss on sale of real estate and impairments of real estate if any.
Adjusted EBITDA is presented because it approximates a key performance measure in our debt covenants, but it should not be considered an alternative measure of operating results or cash flow from operations as determined in accordance with GAAP.
Adjusted EBITDA as presented may not be comparable to other similarly titled measures used by other REITs.
The reconciliation of net income to EBITDA and adjusted EBITDA for the periods presented is as follows:
## Table 2 ##
(5) Fixed charges consist of interest on borrowed funds (including capitalized interest), amortization of debt discount and expense and the portion of rent expense representing an interest factor.
(6) Prior period balances reflect adjustments related to redeemable noncontrolling interests.
See Note 2 of the consolidated financial statements for further discussion.
ITEM 7.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Forward-Looking Statements Certain statements in this section or elsewhere in this report may be deemed “forward-looking statements”.
See “Item 1A.
Risk Factors” in this report for important information regarding these forward-looking statements and certain risk and uncertainties that may affect us.
The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing in “Item 8.
Financial Statements and Supplementary Data” of this report.
Overview We are an equity real estate investment trust (“REIT”) specializing in the ownership, management, and redevelopment of high quality retail and mixed-use properties located primarily in densely populated and affluent communities in strategically selected metropolitan markets in the Northeast and Mid-Atlantic regions of the United States, as well as in California.
As of December 31, 2011, we owned or had a majority interest in community and neighborhood shopping centers and mixed-use properties which are operated as 87 predominantly retail real estate projects comprising approximately 19.3 million square feet.
In total, the real estate projects were 93.4% leased and 92.4% occupied at December 31, 2011.
A joint venture in which we own a 30% interest owned seven retail real estate projects totaling approximately 1.0 million square feet as of December 31, 2011.
In total, the joint venture properties in which we own a 30% interest were 90.9% leased and occupied at December 31, 2011.
We have paid quarterly dividends to our shareholders continuously since our founding in 1962 and have increased our dividends per common share for 44 consecutive years.
Critical Accounting Policies The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, referred to as “GAAP”, requires management to make estimates and assumptions that in certain circumstances affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and revenues and expenses.
These estimates are prepared using management’s best judgment, after considering past and current events and economic conditions.
In addition, information relied upon by management in preparing such estimates includes internally generated financial and operating information, external market information, when available, and when necessary, information obtained from consultations with third party experts.
Actual results could differ from these estimates.
A discussion of possible risks which may affect these estimates is included in “Item 1A.
Risk Factors” of this report.
Management considers an accounting estimate to be

<table><tr><td></td><td>2007</td><td>2006</td><td>2005</td></tr><tr><td></td><td colspan="3">(In thousands)</td></tr><tr><td>SUPPLEMENTAL DISCLOSURES:</td><td></td><td></td><td></td></tr><tr><td>Total interest costs incurred</td><td>$125,259</td><td>$106,877</td><td>$94,257</td></tr><tr><td>Interest capitalized</td><td>-7,865</td><td>-4,069</td><td>-5,691</td></tr><tr><td>Interest expense related to discontinued operations</td><td>-6,029</td><td>-7,574</td><td>-6,949</td></tr><tr><td>Interest expense</td><td>$111,365</td><td>$95,234</td><td>$81,617</td></tr><tr><td>Cash paid for interest, net of amounts capitalized</td><td>$117,554</td><td>$91,612</td><td>$84,242</td></tr><tr><td>Cash paid for income taxes</td><td>$1,126</td><td>$5,098-1</td><td>$82</td></tr><tr><td>NON-CASH INVESTING AND FINANCING TRANSACTIONS:</td><td></td><td></td><td></td></tr><tr><td>Mortgage loans assumed with acquisitions</td><td>$79,987</td><td>$44,297</td><td>$22,258</td></tr><tr><td>Common shares issued with acquisitions</td><td>$77,957</td><td>$—</td><td>$—</td></tr><tr><td>Extinguishment of capital lease obligations</td><td>$76,449</td><td>$—</td><td>$—</td></tr><tr><td>DownREIT operating partnership units issued with acquisitions</td><td>$16,358</td><td>$—</td><td>$—</td></tr><tr><td>Preferred shares issued with acquisitions</td><td>$9,997</td><td>$—</td><td>$—</td></tr></table>
<table><tr><td>Balance, December 31, 2008</td><td>$846,258</td></tr><tr><td>Additions during period—depreciation and amortization expense</td><td>103,698</td></tr><tr><td>Deductions during period—disposition and retirements of property</td><td>-11,869</td></tr><tr><td>Balance, December 31, 2009</td><td>938,087</td></tr><tr><td>Additions during period—depreciation and amortization expense</td><td>108,261</td></tr><tr><td>Deductions during period—disposition and retirements of property</td><td>-11,144</td></tr><tr><td>Balance, December 31, 2010</td><td>1,035,204</td></tr><tr><td>Additions during period—depreciation and amortization expense</td><td>114,180</td></tr><tr><td>Deductions during period—disposition and retirements of property</td><td>-21,796</td></tr><tr><td>Balance, December 31, 2011</td><td>$1,127,588</td></tr></table>
<table><tr><td></td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td></td><td colspan="5">(In thousands)</td></tr><tr><td>Net income</td><td>$149,612</td><td>$128,237</td><td>$103,872</td><td>$135,153</td><td>$201,127</td></tr><tr><td>Depreciation and amortization</td><td>126,568</td><td>119,817</td><td>115,093</td><td>111,068</td><td>105,966</td></tr><tr><td>Interest expense</td><td>98,465</td><td>101,882</td><td>108,781</td><td>99,163</td><td>117,394</td></tr><tr><td>Early extinguishment of debt</td><td>-296</td><td>2,801</td><td>2,639</td><td>—</td><td>—</td></tr><tr><td>Other interest income</td><td>-218</td><td>-256</td><td>-1,894</td><td>-919</td><td>-1,337</td></tr><tr><td>EBITDA</td><td>374,131</td><td>352,481</td><td>328,491</td><td>344,465</td><td>423,150</td></tr><tr><td>Gain on deconsolidation of VIE</td><td>-2,026</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Gain on sale of real estate</td><td>-15,075</td><td>-1,410</td><td>-1,298</td><td>-12,572</td><td>-94,768</td></tr><tr><td>Adjusted EBITDA</td><td>$357,030</td><td>$351,071</td><td>$327,193</td><td>$331,893</td><td>$328,382</td></tr></table>

Question: What is the ratio of Interest expense in Table 2 to the Mortgage loans assumed with acquisitions in Table 0 in 2007?
Answer: 1.46766