**EXHIBIT 12**

 

**COMPUTATION OF RATIOS**

**(UNAUDITED)**

 

Our consolidated ratios of earnings to fixed charges and earnings to combined fixed charges and preference distributions for each of the fiscal years ended December 31, 2008, 2007, 2006, 2005 and 2004 are as follows:

 

|                                                                     |   | **Year Ended December 31,** |        |
|--------------------------------------------------------------------------|--------|-----------------------------|-------------|
| ($ in thousands)                                                         |   | **2008**                    |        | **2007** |   | **2006** |   | **2005** |   | **2004** |   |
| Net income from continuing operations                                    |   | $                           | 232,749     | **(1)** | $ | 514,841 |   | $ | 609,308 |   | $ | 562,132 |   | $ | 603,596 |   |
| Fixed charges                                                            |   |                        | 659,194     |   |   | 631,202 |   |   | 426,984 |   |   | 302,830 |   |   | 247,569 |   |
| Income distributions from partially owned entities                       |   |                        | 44,690      |   |   | 24,044 |   |   | 35,911 |   |   | 40,152 |   |   | 16,740 |   |
| Capitalized interest                                                     |   |                        | (63,063     | ) |   | (53,648 | ) |   | (26,195 | ) |   | (15,582 | ) |   | (8,718 | ) |
|                                                                     |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Earnings - Numerator**                                                 |   | **$**                       | **873,570** |   | **$** | **1,116,439** |   | **$** | **1,046,008** |   | **$** | **889,532** |   | **$** | **859,187** |   |
|                                                                     |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and debt expense                                                |   | $                           | 586,358     |   | $ | 569,386 |   | $ | 394,571 |   | $ | 281,825 |   | $ | 233,750 |   |
| Capitalized interest                                                     |   |                        | 63,063      |   |   | 53,648 |   |   | 26,195 |   |   | 15,582 |   |   | 8,718 |   |
| 1/3 of rental expense – interest factor                             |   |                        | 9,773       |   |   | 8,168 |   |   | 6,218 |   |   | 5,423 |   |   | 5,101 |   |
| **Fixed charges - Denominator**                                          |   |                        | **659,194** |   |   | **631,202** |   |   | **426,984** |   |   | **302,830** |   |   | **247,569** |   |
| Preferred unit distributions                                             |   |                        | 76,834      |   |   | 77,009 |   |   | 80,518 |   |   | 97,232 |   |   | 97,198 |   |
| **Combined fixed charges and preference distributions - Denominator**    |   | **$**                       | **736,028** |   | **$** | **708,211** |   | **$** | **507,502** |   | **$** | **400,062** |   | **$** | **344,767** |   |
|                                                                     |   |                        |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Ratio of earnings to fixed charges**                                   |   |                        | **1.33**    |   |   | **1.77** |   |   | **2.45** |   |   | **2.94** |   |   | **3.47** |   |
| **Ratio of earnings to combined fixed charges and preference dividends** |   |                        | **1.19**    |   |   | **1.58** |   |   | **2.06** |   |   | **2.22** |   |   | **2.49** |   |

 

Earnings equals (i) income from continuing operations before income taxes and income from partially owned entities, plus, (ii) fixed charges and (iii) income distributions from partially owned entities, minus (iv) capitalized interest.  Fixed charges equals (i) interest and debt expense, plus (ii) capitalized interest and (iii) the portion of operating lease rental expense that is representative of the interest factor, which is one-third of operating lease rentals. Combined fixed charges and preference distributions equals fixed charges plus preferred unit distributions.

 

_______________________

| (1) | Includes an aggregate of $358,340 of non-cash impairment charges related to (i) our investment in Lexington Realty Trust, (ii) marketable equity securities and (iii) partially owned and wholly owned real estate development projects. |
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