**Exhibit 12.1**

 

**SPIRIT FINANCE CORPORATION**

**STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXEDCHARGES**

 
| ** **                                           | ** ** | ** **                   | ** ** | ** **                                  | ** ** | ** **                    | ** ** | **Date of Inception** | ** ** |
|------------------------------------------------------|------------|------------------------------|------------|---------------------------------------------|------------|-------------------------------|------------|---------------------------------|------------|
| ** **                                           | ** ** | **Three Months**        | ** ** | ** **                                  | ** ** | ** **                    | ** ** | **(August 14, 2003)** | ** ** |
| ** **                                           | ** ** | **Ended**                    | ** ** | **Years Ended December 31,** | ** ** | **to December 31,** | ** ** |
| **(Dollars in thousands)**                 | ** ** | **March 31, 2006** | ** ** | **2005**                                    | ** ** | **2004**                      | ** ** | **2003 (1)**               | ** ** |
|                                                 |       |                         |       |                                        |       |                          |       |                            |       |
| **Earnings:  (2)**                                   |       |                         |       |                                        |       |                          |       |                            |       |
| Income from continuing operations:                   |       |                         |       |                                        |       |                          |       |                            |       |
| Net income (loss)                                    |       | $                            | 8,135      |                                        | $          | 27,819                        |       | $                               | 8,972      |   | $ | (1,158 | ) |
| Less: Discontinued operations                        |       | 83                           |       | (2,195                                      | )          | (555                          | )          | —                          |       |
| Income (loss) from continuing operations             |       | 8,218                        |       | 25,624                                      |       | 8,417                         |       | (1,158                          | )          |
|                                                 |       |                         |       |                                        |       |                          |       |                            |       |
| Interest expense from continuing operations  (3)     |       | 13,730                       |       | 25,892                                      |       | 4,997                         |       | 53                              |       |
| Total earnings (loss) (a)                            |       | $                            | 21,948     |                                        | $          | 51,516                        |       | $                               | 13,414     |   | $ | (1,105 | ) |
|                                                 |       |                         |       |                                        |       |                          |       |                            |       |
| **Fixed Charges:  (2)**                              |       |                         |       |                                        |       |                          |       |                            |       |
| Interest expense from continuing operations  (3) (b) |       | $                            | 13,730     |                                        | $          | 25,892                        |       | $                               | 4,997      |   | $ | 53 |   |
|                                                 |       |                         |       |                                        |       |                          |       |                            |       |
| **Ratio of  earnings to fixed charges (a/b)**        | ** ** | **1.6**                      | **x**      | **2.0**                                     | **x**      | **2.7**                       | **x**      | **—**                      | ** ** |

 

----

(1)       Earnings were insufficient to meet fixedcharges by approximately $1.2 million for the period from inception on August14, 2003 to December 31, 2003.  For the period ended December 31, 2003,our operations consisted primarily of start-up and organization activities.

 

(2)       Periodically, Spirit Finance may sell realestate properties that do not meet its long-term strategic investmentobjectives. Such properties are typically acquired in conjunction with theacquisition of a portfolio of real estate properties. SFAS No. 144, “Accountingfor the Impairment or Disposal of Long-Lived Assets,” requires that gains andlosses from any such dispositions of properties and all operations from theseproperties be reclassified as “discontinued operations” in the ConsolidatedStatements of Operations. As a result of this reporting requirement, each timea property is sold, previously reported “income from continuing operations”will be restated to reclassify the operations of such property intodiscontinued operations.

 

(3)       Interest expense from continuing operationsincludes interest expense on all indebtedness, including amortization ofdeferred financing costs, debt insurer premiums and the amortization ofinterest rate swap settlement costs, and the portion of the Company’s operatinglease rental expense that management considers to be representative ofinterest.

 

----