EX-12 3 exhibit121.htm EXHIBIT 12.1

Exhibit 12.1

 

 

CBL & Associates Properties, Inc.

Computation of Ratios of Earnings to Combined Fixed Charges and Preferred Dividends

(In thousands, except ratios)

 

 

 

Year Ended December 31,

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before discontinued operations, equity in earnings and minority interest in earnings

 

$

438,477

 

$

478,328

 

$

376,102

 

$

395,811

 

$

283,571

 

Fixed charges less capitalized interest and preferred dividends

 

 

257,067

 

 

210,914

 

 

177,219

 

 

154,116

 

 

143,125

 

Distributed income of equity investees

 

 

12,372

 

 

7,492

 

 

8,801

 

 

4,150

 

 

5,599

 

Equity in losses of equity investees for which charges arise from guarantees

 

 

(461

)

 

(1,020

)

 

—

 

 

(39

)

 

(12

)

Minority interest in earnings of subsidiaries that have not incurred fixed charges

 

 

(4,205

)

 

(3,700

)

 

(3,554

)

 

(2,254

)

 

(1,782

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total earnings

 

$

697,348

 

$

692,014

 

$

558,568

 

$

551,784

 

$

430,501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined fixed charges (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense (2)

 

$

257,067

 

$

210,914

 

$

177,219

 

$

154,116

 

$

143,125

 

Capitalized interest

 

 

11,504

 

 

8,715

 

 

4,517

 

 

5,974

 

 

5,593

 

Preferred dividends

 

 

30,568

 

 

30,568

 

 

18,309

 

 

19,633

 

 

10,919

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges

 

$

299,139

 

$

250,197

 

$

200,045

 

$

179,723

 

$

159,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to combined fixed charges and preferred dividends

 

 

2.35

 

 

2.77

 

 

2.79

 

 

3.07

 

 

2.70

 

 

 

(1)

The interest portion of rental expense is not calculated because the rental expense of the Company is not significant.

 

(2)

Interest expense includes amortization of capitalized debt expenses and amortization of premiums and discounts.

 

 

The Company computes the ratios of earnings to combined fixed charges and preferred stock dividends by dividing earnings by combined fixed charges and preferred stock dividends. For this purpose, earnings consist of pre-tax income from continuing operations before extraordinary items and fixed charges (excluding capitalized interest), adjusted, as applicable, for our proportionate share of earnings of 50 percent-owned affiliates and distributed earnings from less than 50 percent-owned affiliates. Fixed charges consist of interest expense (including interest costs capitalized), amortization of debt costs and the portion of rent expense representing an interest factor.