EX-12.0 2 exhibit12.htm EXHIBIT 12.0 Exhibit 12


Exhibit 12
Statement of Ratios
Preferred Apartment Communities, Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
 
 
2014
 
2013 (A)
 
2012 (A)
 
2011
 
2010
Earnings:
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
$
2,127,203

 
$
(4,205,492
)
 
$
(146,630
)
 
$
(8,495,424
)
 
$
(766,199
)
Add:
 
 
 
 
 
 
 
 
 
 
Fixed charges
 
10,188,187

 
5,780,526

 
2,504,679

 
1,514,581

 
15,064

Less: Net (income) loss attributable to non-controlling interest
(33,714
)
 
222,404

 
—

 
—

 
—

Total earnings
 
12,281,676

 
1,797,438

 
2,358,049

 
(6,980,843
)
 
(751,135
)
 
 
 
 
 
 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
 
 
 
 
 
Interest expense
 
$
9,183,128

 
$
4,921,797

 
$
2,310,667

 
$
1,450,101

 
$
15,064

 
 
 
 
 
 
 
 
 
 
 
Amortization of deferred loan costs
 
 
 
 
 
 
 
 
 
 
related to mortgage indebtedness
 
1,005,059

 
858,729

 
194,012

 
64,480

 
—

Total fixed charges
 
10,188,187

 
5,780,526

 
2,504,679

 
1,514,581

 
15,064

 
 
 
 
 
 
 
 
 
 
 
Preferred dividends
 
7,382,320

 
3,963,146

 
450,806

 
—

 
—

Total Combined fixed charges and
 
 
 
 
 
 
 
 
 
 
preferred dividends
 
$
17,570,507

 
$
9,743,672

 
$
2,955,485

 
$
1,514,581

 
$
15,064

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Combined fixed
 
 
 
 
 
 
 
 
 
 
charges and preferred dividends (A)
 
0.70

 
0.18

 
0.80

 
(B)

 
(B)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(A) As of December 31, 2013, pursuant to the approval of the investment committee of the Manager, the Company entered into an exclusive marketing agreement with an outside firm to market for sale the combined phases of its Trail Creek multifamily community (Trail I and Trail II). The operating results of the community were classified as held for sale at December 31, 2013. As of June 30, 2014, again pursuant to approval of the investment committee of the Manager, the Company removed the Trail Creek community from held for sale classification. As such, the computation of our ratios of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2013 and 2012 as filed in Exhibit 12 of the 2013 Form 10-K have been revised in the calculation above to reflect the change in classification of Trail Creek.
(B) The computation of our ratios of earnings to combined fixed charges and preferred stock dividends indicates that earnings were inadequate to cover combined fixed charges and preferred stock dividends by approximately $5.3 million, $7.9 million, $597,000, $8.5 million and $766,000 for the twelve months ended December 31, 2014, 2013, 2012, 2011, and 2010 respectively. Since we commenced revenue-generating operations in April 2011, the ratio of earnings to combined fixed charges and preferred stock dividends is not a meaningful measure for any period prior to 2011.