EX-12 9 a07-5259_1ex12.htm EX-12

Exhibit 12

 

EQUITY RESIDENTIAL

Computation of Ratio of Earnings to Combined Fixed Charges

 

 

 

Year Ended December 31,

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

Income from continuing operations, net of minority interests

 

$

100,532

 

$

147,323

 

$

88,778

 

$

98,966

 

$

104,689

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

427,952

 

362,347

 

307,697

 

292,996

 

288,319

 

Amortization of deferred financing costs

 

8,302

 

6,503

 

5,814

 

5,269

 

5,281

 

Allocation to Minority Interests:

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership, net

 

4,201

 

6,796

 

2,624

 

202

 

2,335

 

Preference Interests and Junior Preference Units

 

2,002

 

7,606

 

19,490

 

20,536

 

20,536

 

Premium on redemption of Preference Interests

 

684

 

4,134

 

1,117

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges and preferred distributions

 

543,673

 

534,709

 

425,520

 

417,969

 

421,160

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

(37,113

)

(49,642

)

(53,746

)

(76,435

)

(76,615

)

Premium on redemption of Preferred Shares

 

(3,965

)

(4,359

)

—

 

(20,237

)

—

 

Preference Interest and Junior Preference Unit distributions

 

(2,002

)

(7,606

)

(19,490

)

(20,536

)

(20,536

)

Premium on redemption of Preference Interests

 

(684

)

(4,134

)

(1,117

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges

 

$

499,909

 

$

468,968

 

$

351,167

 

$

300,761

 

$

324,009

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

$

427,952

 

$

362,347

 

$

307,697

 

$

292,996

 

$

288,319

 

Amortization of deferred financing costs

 

8,302

 

6,503

 

5,814

 

5,269

 

5,281

 

Interest capitalized for real estate and unconsolidated entities under development

 

20,734

 

13,701

 

13,969

 

20,647

 

27,167

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges

 

456,988

 

382,551

 

327,480

 

318,912

 

320,767

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

37,113

 

49,642

 

53,746

 

76,435

 

76,615

 

Premium on redemption of Preferred Shares

 

3,965

 

4,359

 

—

 

20,237

 

—

 

Preference Interest and Junior Preference Unit distributions

 

2,002

 

7,606

 

19,490

 

20,536

 

20,536

 

Premium on redemption of Preference Interests

 

684

 

4,134

 

1,117

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges and preferred distributions

 

$

500,752

 

$

448,292

 

$

401,833

 

$

436,120

 

$

417,918

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings before combined fixed charges to total combined fixed charges (1)

 

1.09

 

1.23

 

1.07

 

—

 

1.01

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1)

 

1.09

 

1.19

 

1.06

 

—

 

1.01

 

 

(1) For 2003, the coverage deficiencies on both ratios approximated $18.2 million.  All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations for all periods presented.  For 2003, the ratios have been further reduced due to the one-time $20.2 million premium on the redemption of the Series G Preferred Shares.