Exhibit 12.1
Newcastle Investment Corp.
Ratio of Earnings to Fixed Charges
| Three Months Ended |
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| Year Ended December 31, | ||||||||||||||||||||||||
| March 31, 2012 | 2011 | 2010 | 2009 (B) | 2008 (C) | 2007 (D) | |||||||||||||||||||
| Income before equity in earnings of unconsolidated subsidiaries |
$ | 73,207 | $ | 258,869 | $ | 621,576 | $ | (210,006 | ) | $ | (2,983,855 | ) | $ | (70,824 | ) | |||||||||
| Fixed charges, as defined (A) |
30,165 | 138,035 | 172,219 | 218,410 | 307,303 | 476,988 | ||||||||||||||||||
| Distributed income of equity investees |
— | 272 | 94 | 419 | 8,149 | 5,751 | ||||||||||||||||||
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| Earnings, as defined |
$ | 103,372 | $ | 397,176 | $ | 793,889 | $ | 8,823 | $ | (2,668,403 | ) | $ | 411,915 | |||||||||||
| Fixed charges, as defined (A) |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
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| Ratio of Earnings to Fixed Charges |
3.43 | 2.88 | 4.61 | 0.04 | (8.68 | ) | 0.86 | |||||||||||||||||
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| (A) Fixed charges, as defined: |
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| Interest expense |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
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| Fixed charges, as defined |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
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| (B) | The 2009 deficiency in the ratio is $209.6 million, which included impairment charges. Excluding such charges, the ratio would have exceeded 1 to 1. |
| (C) | The 2008 deficiency in the ratio is $2.98 billion, which included impairment charges. Excluding such charges, the ratio would have approximately equaled 1 to 1. |
| (D) | The 2007 deficiency in the ratio is $65.1 million, which included impairment charges. Excluding such charges, the ratio would have exceeded 1 to 1. |
Newcastle Investment Corp.
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
| Three Months Ended |
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| Year Ended December 31, | ||||||||||||||||||||||||
| March 31, 2012 | 2011 | 2010 | 2009 (C) | 2008 (D) | 2007 (E) | |||||||||||||||||||
| Income before equity in earnings of unconsolidated subsidiaries |
$ | 73,207 | $ | 258,869 | $ | 621,576 | $ | (210,006 | ) | $ | (2,983,855 | ) | $ | (70,824 | ) | |||||||||
| Fixed charges, as defined (A) |
30,165 | 138,035 | 172,219 | 218,410 | 307,303 | 476,988 | ||||||||||||||||||
| Distributed income of equity investees |
— | 272 | 94 | 419 | 8,149 | 5,751 | ||||||||||||||||||
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| Earnings, as defined |
$ | 103,372 | $ | 397,176 | $ | 793,889 | $ | 8,823 | $ | (2,668,403 | ) | $ | 411,915 | |||||||||||
| Combined fixed charges and preferred dividends, as defined (B) |
$ | 31,560 | $ | 143,615 | $ | 179,672 | $ | 231,911 | $ | 320,804 | $ | 489,628 | ||||||||||||
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| Ratio of Earnings to Combined Fixed Charges |
3.28 | 2.77 | 4.42 | 0.04 | (8.32 | ) | 0.84 | |||||||||||||||||
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| (A) Fixed charges, as defined: |
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| Interest expense |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
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| Fixed charges, as defined |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
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| (B) Combined fixed charges and preferred dividends, as defined: |
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| Interest expense |
$ | 30,165 | $ | 138,035 | $ | 172,219 | $ | 218,410 | $ | 307,303 | $ | 476,988 | ||||||||||||
| Preferred dividends |
1,395 | 5,580 | 7,453 | 13,501 | 13,501 | 12,640 | ||||||||||||||||||
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| Fixed charges, as defined |
$ | 31,560 | $ | 143,615 | $ | 179,672 | $ | 231,911 | $ | 320,804 | $ | 489,628 | ||||||||||||
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| (C) | The 2009 deficiency in the ratio is $223.1 million, which included impairment charges. Excluding such charges, the ratio would have exceeded 1 to 1. |
| (D) | The 2008 deficiency in the ratio is $2.99 billion, which included impairment charges. Excluding such charges, the ratio would have approximately equaled 1 to 1. |
| (E) | The 2007 deficiency in the ratio is $77.7 million, which included impairment charges. Excluding such charges, the ratio would have exceeded 1 to 1. |