EX-12.1 2 rpai-20141231xex121.htm EXHIBIT 12.1 RPAI-2014.12.31-EX 12.1
Exhibit 12.1

Retail Properties of America, Inc.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends


 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
2011
 
2010
 
Earnings
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations
$
597

 
$
(42,855
)
 
$
(14,368
)
 
$
(71,492
)
 
$
(85,683
)
 
Equity in loss (income) of unconsolidated joint ventures, net
2,088

 
1,246

 
6,307

 
6,437

 
(2,025
)
 
Gain on sales of investment properties, net
42,196

 
5,806

 
7,843

 
5,906

 
—

 
Adjustments added:
 
 
 
 
 
 
 
 
 
 
Fixed charges (see below)
137,944

 
150,685

 
178,306

 
214,920

 
234,890

 
Distributions on investments in unconsolidated joint ventures
1,360

 
7,105

 
6,168

 
2,218

 
5,721

 
Adjustments subtracted:
 
 
 
 
 
 
 
 
 
 
Interest capitalized
—

 
—

 
—

 
(197
)
 
(286
)
 
Total earnings
$
184,185

 
$
121,987

 
$
184,256

 
$
157,792

 
$
152,617

 
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
$
133,835

 
$
146,805

 
$
171,295

 
$
203,914

 
$
223,767

 
Co-venture obligation expense (1)
—

 
—

 
3,300

 
7,167

 
7,167

 
Interest capitalized
—

 
—

 
—

 
197

 
286

 
Estimate of interest within rental expense
4,109

 
3,880

 
3,711

 
3,642

 
3,670

 
Total fixed charges
$
137,944

 
$
150,685

 
$
178,306

 
$
214,920

 
$
234,890

 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock dividends
9,450

 
9,450

 
263

 
—

 
—

 
Total fixed charges and preferred stock dividends
$
147,394

 
$
160,135

 
$
178,569

 
$
214,920

 
$
234,890

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to fixed charges
1.34
 
—

(2)
1.03
 
—

(2)
—

(2)
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings to combined fixed charges and preferred stock dividends
1.25
 
—

(3)
1.03
 
—

(3)
—

(3)


(1)
Represents the preferred return and incentive and other compensation with respect to the IW JV 2009, LLC, or IW JV. The Company redeemed the full amount of the noncontrolling interest on April 26, 2012.
(2)
The ratio was less than 1:1 for the years ended December 31, 2013, 2011 and 2010 as earnings were inadequate to cover fixed charges by deficiencies of approximately $28.7 million, $57.1 million and $82.3 million, respectively.
(3)
The ratio was less than 1:1 for the years ended December 31, 2013, 2011 and 2010 as earnings were inadequate to cover fixed charges by deficiencies of approximately $38.1 million, $57.1 million and $82.3 million, respectively.