EX-12.1 3 l96799bexv12w1.txt EXHIBIT 12.1 RATIO OF EARNINGS Exhibit 12.1 RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED SHARE DISTRIBUTIONS OF DEVELOPERS DIVERSIFIED REALTY CORPORATION (Amounts in Thousands)
Year Ended December 31, -------------------------------------------------------------- 1997 1998 1999 2000 2001 --------- --------- --------- --------- ---------- Pretax income from continuing operations $ 67,110 $ 78,048 $ 86,662 $ 100,053 $ 90,599 ========= ========= ========= ========= ========= Fixed charges: Interest expense including amortization of deferred costs and capitalized interest $ 39,549 $ 67,096 $ 82,323 $ 95,230 $ 94,697 Ground Rent 33% $ 56 $ 120 $ 176 $ 244 $ 234 Preferred Dividends $ 14,200 $ 20,139 $ 32,419 $ 42,563 $ 46,343 Proportionate share of fixed charges of 50 % owned joint ventures accounted for using equity method of accounting $ -- $ -- $ -- $ -- $ -- --------- --------- --------- --------- ---------- Total fixed costs $ 53,805 $ 87,355 $ 114,918 $ 138,037 $ 141,274 --------- --------- --------- --------- ---------- Capitalized interest during the period ($ 3,991) ($ 9,900) ($13,400) ($18,200) ($12,927) Preferred Dividends ($ 14,200) ($20,139) ($32,419) ($42,563) ($46,343) Amortization of capitalized interest during the period $ 498 $ 826 $ 1,272 $ 1,879 $ 2,310 Majority-owned subsidiary adjustments $ 1,049 $ 3,312 $ 11,809 $ 19,593 $ 21,502 Equity Company Adjustments ($ 10,893) ($ 13,351) ($ 24,713) ($ 23,296) ($ 18,560) Equity Company Adjustments Distributed Income $ 10,185 $ 12,903 $ 24,713 $ 23,296 $ 18,560 --------- --------- --------- --------- ---------- Earnings before income taxes and fixed charges $ 103,563 $ 139,054 $ 168,842 $ 198,799 $ 196,415 ========= ========= ========= ========= ========= Ratio of earnings to Combined Fixed charges $ 1.92 $ 1.59 $ 1.47 $ 1.44 $ 1.39 ========= ========= ========= ========= ========= June 30, ---------------------- 2001 2002 --------- --------- Pretax income from continuing operations $ 50,109 $ 50,578 ========= ========= Fixed charges: Interest expense including amortization of deferred costs and capitalized interest $ 47,866 $ 43,266 Ground Rent 33% $ 152 $ 151 Preferred Dividends $ 13,631 $ 23,618 Proportionate share of fixed charges of 50 % owned joint ventures accounted for using equity method of accounting $ -- $ -- --------- --------- Total fixed costs $ 61,649 $ 67,035 --------- --------- Capitalized interest during the period ($6,860) ($4,967) Preferred Dividends ($13,631) ($23,618) Amortization of capitalized interest during the period $ 2,540 $ 2,705 Majority-owned subsidiary adjustments $ 10,443 $ 11,200 Equity Company Adjustments ($10,904) ($17,617) Equity Company Adjustments Distributed Income $ 8,701 $ 17,617 --------- --------- Earnings before income taxes and fixed charges $ 102,046 $ 102,934 ========= ========= Ratio of earnings to Combined Fixed charges $ 1.66 $ 1.54 ========= =========