EX-12.1 7 iret-20170430ex121d931a9.htm EX-12.1 iret_Ex12_1

Exhibit 12.1

 

CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED SHARE DISTRIBUTIONS

(Unaudited)

 

The following table sets forth our ratios of earnings to fixed charges and earnings to combined fixed charges and preferred share dividends for the periods indicated. The ratio of earnings to fixed charges was computed by dividing earnings by our fixed charges. The ratio of earnings to combined fixed charges and preferred share dividends was computed by dividing earnings by our combined fixed charges and preferred share dividends. For purposes of calculating these ratios, earnings consist of income from continuing operations plus fixed charges, less loss (income) from non-controlling interests and interest capitalized. Fixed charges consist of interest charges on all indebtedness, whether expensed or capitalized, the interest component of rental expense and the amortization of debt discounts and issue costs, whether expensed or capitalized. Preferred share dividends consist of dividends on our Series A and Series B preferred shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except ratios)

 

 

 

Fiscal Year Ended April 30, 

 

 

 
2017

 
2016

 
2015

 
2014

 
2013

 

Earnings

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

(Loss) income from continuing operations

 

$

(38,150)

 

$

17,105

 

$

17,330

 

$

4,136

 

$

12,275

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined fixed charges and preferred distributions (see below)

 

 

56,919

 

 

70,595

 

 

75,437

 

 

73,933

 

 

73,657

 

Amortization of capitalized interest

 

 

234

 

 

203

 

 

74

 

 

 —

 

 

 —

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss (Income) noncontrolling interests – consolidated real estate entities

 

 

16,881

 

 

2,436

 

 

(3,071)

 

 

(910)

 

 

(809)

 

Interest capitalized

 

 

(431)

 

 

(4,907)

 

 

(4,903)

 

 

(2,856)

 

 

(742)

 

Preferred distributions

 

 

(10,546)

 

 

(11,514)

 

 

(11,514)

 

 

(11,514)

 

 

(9,229)

 

Total earnings

 

$

24,907

 

$

73,918

 

$

73,353

 

$

62,789

 

$

75,152

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$
45,942

 

 
54,174

 

 
59,020

 

 
59,563

 

 
63,686

 

Interest capitalized

 

 
431

 

 
4,907

 

 
4,903

 

 
2,856

 

 
742

 

Total fixed charges

 

$
46,373

 

$
59,081

 

$
63,923

 

$
62,419

 

$
64,428

 

Preferred distributions

 

 
10,546

 

 
11,514

 

 
11,514

 

 
11,514

 

 
9,229

 

Total combined fixed charges and preferred distributions

 

$

56,919

 

$

70,595

 

$

75,437

 

$

73,933

 

$

73,657

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 

(a)

 

 
1.25

x

 
1.15

x

 

1.01

x

 
1.17

x

Ratio of earnings to combined fixed charges and preferred distributions

 

 

(a)

 

 
1.05

x

 

(b)

 

 

(c)

 

 
1.02

x

 

(a)

Earnings were inadequate to cover (1)  fixed charges and (2) combined fixed charges and preferred distributions by $21.5 million and $32.0 million, respectively. Excluding non-cash asset impairment charges of $57.1 million, the ratio of earnings to fixed charges and of earnings to combined fixed charges and preferred distributions would have been 1.77x and 1.44x, respectively, for the fiscal year ended April 30, 2017.

(b)

Earnings were inadequate to cover combined fixed charges and preferred distributions by $2.1 million. Excluding non-cash asset impairment charges of $4.5 million, the ratio of earnings to combined fixed charges and preferred distributions would have been 1.03x, for the fiscal year ended April 30, 2015.

(c)

Earnings were inadequate to cover combined fixed charges and preferred distributions by $11.1 million. Excluding non-cash asset impairment charges of $7.8 million, the ratio of earnings to combined fixed charges and preferred distributions would have been 0.95x, for the fiscal year ended April 30, 2014.