EX-12.1 3 q2201710-qex121.htm EXHIBIT 12.1 Exhibit


Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
Six Months Ended June 30, 2017
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
 
Year Ended
December 31,  2013 (1)
Income from continuing operations before cumulative effect of change in accounting principle
$
401,053

 
$
1,034,013

 
$
743,216

 
$
668,516

 
$
57,827

 
 
 
 
 
 
 
 
 
 
(Plus):
 

 
 

 
 

 
 

 
 

Equity in income of unconsolidated entities, net of distributions received
9,483

 
60,103

 
84,764

 
71,781

 
74,575

Amortization of capitalized interest (2) 
14,475

 
27,779

 
25,150

 
22,489

 
20,157

 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
$
425,011

 
$
1,121,895

 
$
853,130

 
$
762,786

 
$
152,559

 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 

 
 

 
 

 
 

 
 

Portion of rents representative of the interest factor
$
3,784

 
$
8,483

 
$
7,790

 
$
7,504

 
$
7,112

Interest expense
99,397

 
187,510

 
175,615

 
180,618

 
172,402

Interest capitalized
35,100

 
78,872

 
79,834

 
69,961

 
66,838

Preferred dividend

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
$
138,281

 
$
274,865

 
$
263,239

 
$
258,083

 
$
246,352

 
 
 
 
 
 
 
 
 
 
(Less):
 

 
 

 
 

 
 

 
 

Interest capitalized
35,100

 
78,872

 
79,834

 
69,961

 
66,838

Preferred dividend

 

 

 

 

Noncontrolling interest in income of a subsidiary that has not incurred fixed charges

 

 

 
14,132

 

 
 
 
 
 
 
 
 
 
 
Earnings (4) 
$
528,192

 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
$
332,073

 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
3.82

 
4.79

 
3.94

 
3.63

 
1.35

 
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
 
Six Months Ended June 30, 2017
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
 
Year Ended
December 31,  2013 (1)
Income from continuing operations before cumulative effect of change in accounting principle
$
401,053

 
$
1,034,013

 
$
743,216

 
$
668,516

 
$
57,827

 
 
 
 
 
 
 
 
 
 
(Plus):
 

 
 

 
 

 
 

 
 

Equity in income of unconsolidated entities, net of distributions received
9,483

 
60,103

 
84,764

 
71,781

 
74,575

Amortization of capitalized interest (2) 
14,475

 
27,779

 
25,150

 
22,489

 
20,157

 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
$
425,011

 
$
1,121,895

 
$
853,130

 
$
762,786

 
$
152,559

 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 

 
 

 
 

 
 

 
 

Portion of rents representative of the interest factor
$
3,784

 
$
8,483

 
$
7,790

 
$
7,504

 
$
7,112

Interest expense
99,397

 
187,510

 
175,615

 
180,618

 
172,402

Interest capitalized
35,100

 
78,872

 
79,834

 
69,961

 
66,838

 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
$
138,281

 
$
274,865

 
$
263,239

 
$
258,083

 
$
246,352

 
 
 
 
 
 
 
 
 
 
(Less):
 

 
 

 
 

 
 

 
 

Interest capitalized
35,100

 
78,872

 
79,834

 
69,961

 
66,838

Noncontrolling interest in income of a subsidiary that has not incurred fixed charges

 

 

 
14,132

 

 
 
 
 
 
 
 
 
 
 
Earnings (4) 
$
528,192

 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
$
332,073

 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
3.82

 
4.79

 
3.94

 
3.63

 
1.35


(1)
The results of operations for 2013 and 2014 have been adjusted to remove the Company's earnings classified as discontinued operations.
(2)
Represents an estimate of capitalized interest costs based on the Company’s established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed).