EX-12.1 4 d543151dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

NATIONAL RETAIL PROPERTIES, INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES AND TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

The following table sets forth the Company’s consolidated ratios of earnings to fixed charges and to combined fixed charges and preferred stock dividends for the periods as shown (dollars in thousands).

 

     2017(A)      2016      2015      2014      2013  

Pretax income from continuing operations before income from equity investees

    $ 265,371      $ 239,506      $ 208,386      $ 191,289      $ 155,631  

Add:

               

Fixed charges (excluding capitalized interest)

      108,930        96,168        89,973        85,514        85,912  

Distributed income from equity investees

      —          —          —          —          —    
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Pretax earnings from operations, as adjusted

    $ 374,301      $ 335,674      $ 298,359      $ 276,803      $ 241,543  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed Charges:

               

Interest on indebtedness

    $ 101,811      $ 89,057      $ 84,080      $ 80,370      $ 79,175  

Capitalized interest

      2,435        1,738        2,383        1,628        1,369  

Amortization of net discount relating to indebtedness

      1,702        1,246        1,100        1,238        3,188  

Amortization of interest rate hedges

      1,932        2,802        1,902        1,129        438  

Amortization of deferred charges

      3,485        3,063        2,891        2,777        3,111  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

    $ 111,365      $ 97,906      $ 92,356      $ 87,142      $ 87,281  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to fixed charges

      3.36        3.43        3.23        3.18        2.77  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Fixed charges

    $ 111,365      $ 97,906      $ 92,356      $ 87,142      $ 87,281  

Preferred stock dividends

      37,925        38,623        35,434        35,434        27,923  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Combined fixed charges and preferred stock dividends

    $ 149,290      $ 136,529      $ 127,790      $ 122,576      $ 115,204  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratio of earnings to combined fixed charges and preferred stock dividends

      2.51        2.46        2.33        2.26        2.10  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(A) Excluding the effect of $7.8 million in retirement severance costs, ratio of earnings to fixed charges would have been 3.43x and the ratio of earnings to combined fixed charges and preferred stock dividends would have been 2.56x. Retirement severance costs relate primarily to Craig Macnab’s retirement as our chief executive officer on April 28, 2017.

For the purpose of computing these ratios, earnings have been calculated by taking pre-tax income from continuing operations before adjustment for income from equity investees and adding fixed charges, distributed income of equity investees and subtracting capitalized interest. Fixed charges consist of the sum of interest costs, whether expensed or capitalized, and amortized premiums, discounts and capitalized expenses related to indebtedness. Preferred stock dividends are the amount of pre-tax earnings that are required to pay the dividends on outstanding preferred securities.