EX-12.2 4 dex122.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED Prepared by R.R. Donnelley Financial -- Computation of Ratio of Earnings to Combined Fixed
EXHIBIT 12.2
 
ARCHSTONE-SMITH OPERATING TRUST
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED UNIT DISTRIBUTIONS
 
(Dollar amounts in thousands)
 
(Unaudited)
 
    
Years Ended December 31,
    
2001
   
2000(2)
   
1999(2)
   
1998(2)
   
1997(1)(2)
Earnings from operations
   
$
175,397
   
$
176,466
   
$
169,339
   
$
134,571
   
$
24,686
Add:
                                   
Interest expense
   
 
141,907
   
 
145,173
   
 
121,494
   
 
83,350
   
 
61,153
    
  
  
  
  
Earnings as adjusted
   
$
317,304
   
$
321,639
   
$
290,833
   
$
217,921
   
$
85,839
    
  
  
  
  
Combined fixed charges and Preferred Unit distributions:
                                   
Interest expense
   
$
141,907
   
$
145,173
   
$
121,494
   
$
83,350
   
$
61,153
Capitalized interest
   
 
20,294
   
 
24,317
   
 
31,912
   
 
29,942
   
 
17,606
    
  
  
  
  
Total fixed charges
   
 
162,201
   
 
169,490
   
 
153,406
   
 
113,292
   
 
78,759
    
  
  
  
  
Preferred Unit distributions
   
 
22,277
   
 
25,340
   
 
23,733
   
 
20,938
   
 
19,384
    
  
  
  
  
Combined fixed charges and Preferred Unit distributions
   
$
184,478
   
$
194,830
   
$
177,139
   
$
134,230
   
$
98,143
    
  
  
  
  
Ratio of earnings to combined fixed charges and Preferred Unit distributions
   
 
1.7
   
 
1.7
   
 
1.6
   
 
1.6
   
 
0.9
    
  
  
  
  
 
(1)
 
Earnings from operations for 1997 includes a one-time, non-cash charge of $71.7 million associated with costs incurred in acquiring Archstone’s REIT and property management companies from Security Capital. Accordingly, earnings from operations were insufficient to cover combined fixed charges and Preferred Unit distributions by $12.3 million for the year ended December 31, 1997. Excluding the charge, the ratio of earnings to combined fixed charges and Preferred Unit distributions for the year ended December 31 1997 would be 1.6.
 
(2)
 
In October 2001, Archstone was reorganized into an UPREIT structure and was renamed Archstone-Smith Operating Trust. All periods prior to the reorganization have been recast as if Archstone-Smith Operating Trust were an UPREIT for all periods presented.