EX-12.1 3 srg-ex121_378.htm EX-12.1 srg-ex121_378.htm

Exhibit 12.1

 

SERITAGE GROWTH PROPERTIES

 

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

 

(Amounts in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July 7, 2015

 

 

 

 

 

 

 

 

 

 

 

(date operations

 

 

 

Year Ended

 

 

commenced) to

 

 

 

December 31, 2017

 

 

December 31, 2016

 

 

December 31, 2015

 

Loss before income taxes (1)

 

$

(120,542

)

 

$

(90,504

)

 

$

(37,859

)

Add:

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges before preferred stock dividends (2)

 

 

83,481

 

 

 

66,853

 

 

 

30,749

 

Distributions from unconsolidated joint ventures

 

 

14,344

 

 

 

15,677

 

 

 

6,733

 

Subtract:

 

 

 

 

 

 

 

 

 

 

 

 

Capitalized interest

 

 

(13,142

)

 

 

(3,077

)

 

 

(226

)

Equity in loss (income) from unconsolidated joint ventures

 

 

7,788

 

 

 

(4,646

)

 

 

(4,772

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings

 

$

(28,071

)

 

$

(15,697

)

 

$

(5,375

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

Interest on indebtedness

 

 

61,393

 

 

 

58,230

 

 

 

27,804

 

Capitalized interest

 

 

13,142

 

 

 

3,077

 

 

 

226

 

Amortization of financing costs

 

 

8,719

 

 

 

5,361

 

 

 

2,657

 

Interest factor in rent (3)

 

 

227

 

 

 

185

 

 

 

62

 

Preferred stock dividends

 

 

245

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined fixed charges and preferred stock dividends

 

$

83,726

 

 

$

66,853

 

 

$

30,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred dividends

 

N/A

 

 

N/A

 

 

N/A

 

 

(1)

Loss before income taxes includes non-cash charges for depreciation and amortization expense and unrealized losses on interest rate cap.  Depreciation and amortization expense included in Loss before income taxes was $262.2 million, $177.1 million and $65.9 million for the year ended December 31, 2017, the year ended December 31, 2016 and the period from July 7, 2015 (date operations commenced) to December 31, 2015, respectively.   Unrealized loss on interest rate cap included in Loss before income taxes was $0.7 million, $1.4 million and $2.9 million for the year ended December 31, 2017, the year ended December 31, 2016 and the period from July 7, 2015 (date operations commenced) to December 31, 2015, respectively.

(2)

Fixed charges exceeded earnings by $111.6 million, $82.6 million and $36.1 million for the year ended December 31, 2017, the year ended December 31, 2016 and the period from July 7, 2015 (date operations commenced) to December 31, 2015, respectively.

(3)

Interest factor on rent represents one-third of rental expense (the approximate portion of rental expense representing interest).