EX-12 2 a08-15235_1ex12.htm EX-12

Exhibit 12

 

EQUITY RESIDENTIAL

Computation of Ratio of Earnings to Combined Fixed Charges

 

 

 

Quarter Ended March 31,

 

Year Ended December 31,

 

 

 

2008

 

2007

 

2007

 

2006

 

2005

 

2004

 

2003

 

Income from continuing operations, net of minority interests

 

$

26,024

 

$

8,742

 

$

85,690

 

$

44,624

 

$

99,284

 

$

37,402

 

$

48,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

117,247

 

110,656

 

483,670

 

418,609

 

352,776

 

297,261

 

278,817

 

Amortization of deferred financing costs

 

2,161

 

2,221

 

10,139

 

8,095

 

6,356

 

5,694

 

5,086

 

Allocation to Minority Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership, net

 

1,518

 

106

 

3,873

 

270

 

3,319

 

(1,207

)

(3,907

)

Preference Interests and Junior Preference Units

 

4

 

223

 

441

 

2,002

 

7,606

 

19,490

 

20,536

 

Premium on redemption of Preference Interests

 

—

 

—

 

—

 

684

 

4,134

 

1,117

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges and preferred distributions

 

146,954

 

121,948

 

583,813

 

474,284

 

473,475

 

359,757

 

348,887

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

(3,633

)

(7,424

)

(22,792

)

(37,113

)

(49,642

)

(53,746

)

(76,435

)

Premium on redemption of Preferred Shares

 

—

 

—

 

(6,154

)

(3,965

)

(4,359

)

—

 

(20,237

)

Preference Interest and Junior Preference Unit distributions

 

(4

)

(223

)

(441

)

(2,002

)

(7,606

)

(19,490

)

(20,536

)

Premium on redemption of Preference Interests

 

—

 

—

 

—

 

(684

)

(4,134

)

(1,117

)

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges

 

$

143,317

 

$

114,301

 

$

554,426

 

$

430,520

 

$

407,734

 

$

285,404

 

$

231,679

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

$

117,247

 

$

110,656

 

$

483,670

 

$

418,609

 

$

352,776

 

$

297,261

 

$

278,817

 

Amortization of deferred financing costs

 

2,161

 

2,221

 

10,139

 

8,095

 

6,356

 

5,694

 

5,086

 

Interest capitalized for real estate and unconsolidated entities under development

 

14,714

 

7,866

 

45,107

 

20,734

 

13,701

 

13,969

 

20,647

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges

 

134,122

 

120,743

 

538,916

 

447,438

 

372,833

 

316,924

 

304,550

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

3,633

 

7,424

 

22,792

 

37,113

 

49,642

 

53,746

 

76,435

 

Premium on redemption of Preferred Shares

 

—

 

—

 

6,154

 

3,965

 

4,359

 

—

 

20,237

 

Preference Interest and Junior Preference Unit distributions

 

4

 

223

 

441

 

2,002

 

7,606

 

19,490

 

20,536

 

Premium on redemption of Preference Interests

 

—

 

—

 

—

 

684

 

4,134

 

1,117

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges and preferred distributions

 

$

137,759

 

$

128,390

 

$

568,303

 

$

491,202

 

$

438,574

 

$

391,277

 

$

421,758

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.07

 

—

 

1.03

 

—

 

1.09

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.07

 

—

 

1.03

 

—

 

1.08

 

—

 

—

 

 

(1) For the quarter ended March 31, 2007, the coverage deficiencies on both ratios approximated $6.4 million.  For the years ended December 31, 2006, 2004 and 2003, the coverage deficiencies on both ratios approximated $16.9 million, $31.5 million and $72.9 million, respectively.  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 all periods presented, the ratios have been further reduced due to non-cash depreciation expense charges and premiums on the redemption of Preferred Shares and/or Preference Interests.  The Company was in compliance with its unsecured public debt covenants for all periods presented.

 

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