Common use of Debt Coverage Clause in Contracts

Debt Coverage. The Borrower will not, at the end of any fiscal quarter, permit the Funds from Operations plus expensed interest for such fiscal quarter and the preceding three fiscal quarters (the "Test Period") to be less than 2.5 times the Debt Service for the Test Period. For purposes of testing compliance with this covenant only, if Debt Service includes capitalized interest incurred as the result of Borrower or its Subsidiary engaging in a development activity permitted by Section 8.9, Funds from Operations for each fiscal quarter in which interest is so capitalized as a result of such development shall include the Pro Forma Development Net Operating Income for such development. For any fiscal quarter, the Pro Forma Development Net Operating Income shall be the amount obtained by multiplying (x) the quarterly Net Operating Income which the Borrower and the Agent mutually agree will be derived immediately following the completion of such development project and the delivery of leased premises to tenants with signed leases on the basis of such signed leases in effect as of the date of such calculation (any cancellation or termination options contained in such leases must be acceptable to the Agent in the exercise of its reasonable discretion), by (y) the quotient obtained by dividing (i) the amount of Loans advanced under this Agreement in connection with the construction of such development project during the fiscal quarter in question, by (ii) the total project costs incurred for such development project as of the end of the fiscal quarter in question. The Borrower shall provide the Agent with copies of such leases, information regarding project costs and such other information, data and reports as the Agent shall require in order to test compliance with this covenant.

Debt Coverage. The Borrower will not, at the end of any fiscal quarter, permit the Funds from Operations plus expensed interest for such fiscal quarter and the preceding three fiscal quarters (the "Test Period"ATest Period@) to be less than 2.5 times the Debt Service for the Test Period. For purposes of testing compliance with this covenant only, if Debt Service includes capitalized interest incurred as the result of Borrower or its Subsidiary engaging in a development activity permitted by Section 8.9-Section-8.9, Funds from Operations for each fiscal quarter in which interest is so capitalized as a result of such development shall include the Pro Forma Development Net Operating Income for such development. For any fiscal quarter, the Pro Forma Development Net Operating Income shall be the amount obtained by multiplying (x) the quarterly Net Operating Income which the Borrower and the Agent mutually agree will be derived immediately following the completion of such development project and the delivery of leased premises to tenants with signed leases on the basis of such signed leases in effect as of the date of such calculation (any cancellation or termination options contained in such leases must be acceptable to the Agent in the exercise of its reasonable discretion), by (y) the quotient obtained by dividing (i) the amount of Loans advanced under this Agreement in connection with the construction of such development project during the fiscal quarter in question, by (ii) the total project costs incurred for such development project as of the end of the fiscal quarter in question. The Borrower shall provide the Agent with copies of such leases, information regarding project costs and such other information, data and reports as the Agent shall require in order to test compliance with this covenant.