EX-12.1 4 exhibit12.htm STATEMENT OF COMPUTATION OF RATIO OF EARNINGS exhibit12.htm
 
 
 
 
Exhibit 12.1
         
 
        
   
Home Properties, Inc.
  
                               
Computation of Ratio of Earnings to Fixed Charges
and
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
  
(Amounts in thousands of dollars)
  
                               
   
Year Ended December 31,
  
   
2005
    
2006
    
2007
    
2008
    
2009
  
Earnings:
                              
Income from continuing operations
   $ 23,787     $ 28,248     $ 32,244     $ 37,702     $ 25,365  
Plus:
                                        
Fixed charges (from below)
     106,770       116,138       126,692       124,684       131,029  
Amortization of capitalized interest
     101       130       195       375       663  
Less:
                                        
Interest capitalized
     (1,096 )     (1,087 )     (3,441 )     (5,472 )     (8,900 )
Earnings (A)
   $ 129,562     $ 143,429     $ 155,690     $ 157,289     $ 148,157  
                                         
Fixed charges:
                                        
Interest expense, net of losses from early
  extinguishment (1)
     105,081       114,510       122,644       118,557       121,491  
Rentals (2)
     593       541       607       655       638  
Capitalized interest
     1,096       1,087       3,441       5,472       8,900  
Fixed Charges (B)
   $ 106,770     $ 116,138     $ 126,692     $ 124,684     $ 131,029  
Preferred dividends, including redemption costs (3)
     6,279       5,400       3,192       -       -  
Combined Fixed Charges and Preferred Dividends (C)
   $ 113,049     $ 121,538     $ 129,884     $ 124,684     $ 131,029  
                                         
Ratio of Earnings to Fixed Charges (A/B)
     1.21       1.23       1.23       1.26       1.13  
                                         
Ratio of Earnings to Fixed Charges and Dividends (A/C)
     1.15       1.18       1.20       1.26       1.13  
                                         
(1) Interest expense includes interest expense of continuing and discontinued operations.
  
(2) Interest component of operating leases for office space and office equipment is estimated at 33% of total lease payments.
  
(3) The ratio of pre-tax income to net income is 1:1, as the Company has elected to be taxed as a real estate investment trust, and as such, is generally not subject to Federal or State income tax at the corporate level.