EX-12 2 c63161exv12.htm EX-12 exv12
Exhibit 12
ERP OPERATING LIMITED PARTNERSHIP
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
                                         
    Year Ended December 31,  
    2010     2009     2008     2007     2006  
(Loss) income from continuing operations
   $ (19,844 )   $ 2,931     $ (40,054 )   $ (4,982 )   $ (29,983 )
 
                                        
Interest expense incurred, net
     470,654       496,272       482,317       482,126       410,551  
Amortization of deferred financing costs
     10,369       12,566       9,647       10,040       8,004  
 
                              
Earnings before combined fixed charges and preferred distributions
     461,179       511,769       451,910       487,184       388,572  
Preference Unit distributions
     (14,368 )     (14,479 )     (14,507 )     (22,792 )     (37,113 )
Premium on redemption of Preference Units
     —       —       —       (6,154 )     (3,965 )
Preference Interest and Junior Preference Unit distributions
     —       (9 )     (15 )     (441 )     (2,002 )
Premium on redemption of Preference Interests
     —       —       —       —       (684 )
 
                              
Earnings before combined fixed charges
   $ 446,811     $ 497,281     $ 437,388     $ 457,797     $ 344,808  
 
                              
 
                                        
Interest expense incurred, net
   $ 470,654     $ 496,272     $ 482,317     $ 482,126     $ 410,551  
Amortization of deferred financing costs
     10,369       12,566       9,647       10,040       8,004  
Interest capitalized for real estate and unconsolidated entities under development
     13,008       34,859       60,072       45,107       20,734  
Amortization of deferred financing costs for real estate under development
     2,768       3,585       1,986       1,521       46  
 
                              
 
                                        
Total combined fixed charges
     496,799       547,282       554,022       538,794       439,335  
 
                                        
Preference Unit distributions
     14,368       14,479       14,507       22,792       37,113  
Premium on redemption of Preference Units
     —       —       —       6,154       3,965  
Preference Interest and Junior Preference Unit distributions
     —       9       15       441       2,002  
Premium on redemption of Preference Interests
     —       —       —       —       684  
 
                              
 
                                        
Total combined fixed charges and preferred distributions
   $ 511,167     $ 561,770     $ 568,544     $ 568,181     $ 483,099  
 
                              
 
                                        
Ratio of earnings before combined fixed charges to total combined fixed charges (1)
     —       —       —       —       —  
 
                              
 
                                        
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1)
     —       —       —       —       —  
 
                              
 
(1)   For 2010, 2009, 2008, 2007 and 2006, the coverage deficiencies approximated $50.0 million, $50.0 million, $116.6 million, $81.0 million and $94.5 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations. The ratios have been further reduced due to non-cash depreciation expense and impairment charges and premiums on the redemption of Preference Units and/or Preference Interests. The Operating Partnership was in compliance with its unsecured public debt covenants for all periods presented.