Exhibit 12.2
POST APARTMENT HOMES, L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DISTRIBUTIONS
(Dollars in thousands)
Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||||||||||||
2009(1) | 2008(1) | 2007(1) | 2006(1) | 2005(1) | 2004(1) | |||||||||||||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (86,796 | ) | $ | (96,542 | ) | $ | 105,192 | $ | 20,023 | $ | (15,842 | ) | $ | (49,277 | ) | ||||||||||||||||||||||
Minority interest in consolidated property partnerships | - | 395 | 1,857 | 257 | (239 | ) | (671 | ) | ||||||||||||||||||||||||||||||
Equity in loss (income) of unconsolidated entities | 74,577 | (1,224 | ) | (1,556 | ) | (1,813 | ) | (1,767 | ) | (1,083 | ) | |||||||||||||||||||||||||||
Income (loss) from continuing operations before minority interest and equity in loss (income) of unconsolidated entities | (12,219 | ) | (97,371 | ) | 105,493 | 18,467 | (17,848 | ) | (51,031 | ) | ||||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||||||
Distributions of income from investments in unconsolidated entities | 1,325 | 2,650 | 2,554 | 2,713 | 2,033 | 1,928 | ||||||||||||||||||||||||||||||||
Fixed charges | 53,106 | 69,774 | 69,854 | 71,199 | 69,641 | 85,690 | ||||||||||||||||||||||||||||||||
Deduct: | ||||||||||||||||||||||||||||||||||||||
Capitalized interest | (9,780 | ) | (12,406 | ) | (11,801 | ) | (9,942 | ) | (2,907 | ) | (1,078 | ) | ||||||||||||||||||||||||||
Minority interest in income of consolidated property partnerships not incurring fixed charges | - | (130 | ) | (1,603 | ) | - | - | - | ||||||||||||||||||||||||||||||
Total Earnings ( A ) | $ | 32,432 | $ | (37,483 | ) | $ | 164,497 | $ | 82,437 | $ | 50,919 | $ | 35,509 | |||||||||||||||||||||||||
Fixed charges and preferred distributions: | ||||||||||||||||||||||||||||||||||||||
Interest expense (2) | $ | 40,174 | $ | 52,779 | $ | 53,633 | $ | 56,721 | $ | 61,059 | $ | 69,084 | ||||||||||||||||||||||||||
Termination of debt remarketing agreement (interest expense) (3) | - | - | - | - | - | 10,615 | ||||||||||||||||||||||||||||||||
Amortization of deferred financing costs | 2,342 | 3,473 | 3,297 | 3,526 | 4,661 | 4,304 | ||||||||||||||||||||||||||||||||
Capitalized interest | 9,780 | 12,406 | 11,801 | 9,942 | 2,907 | 1,078 | ||||||||||||||||||||||||||||||||
Rentals (4) | 810 | 1,116 | 1,123 | 1,010 | 1,014 | 609 | ||||||||||||||||||||||||||||||||
Total Fixed Charges ( B ) | $ | 53,106 | $ | 69,774 | $ | 69,854 | $ | 71,199 | $ | 69,641 | $ | 85,690 | ||||||||||||||||||||||||||
Preferred distributions, including redemption costs | 5,728 | 7,637 | 7,637 | 7,637 | 7,637 | 15,631 | ||||||||||||||||||||||||||||||||
Total Fixed Charges and Preferred Distributions (C) | $ | 58,834 | $ | 77,411 | $ | 77,491 | $ | 78,836 | $ | 77,278 | $ | 101,321 | ||||||||||||||||||||||||||
Ratio of Earnings to Fixed Charges ( A / B ) | 0.6 | x | (5) | (0.5 | ) x | (5) | 2.4 | x | 1.2 | x | 0.7 | x | (5) | 0.4 | x | (5) | ||||||||||||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Distributions ( A / C ) | 0.6 | x | (5) | (0.5 | ) x | (5) | 2.1 | x | 1.0 | x | 0.7 | x | (5) | 0.4 | x | (5) | ||||||||||||||||||||||
(1) | Post Apartment Homes, L.P. adopted new guidance in ASC Topic 810 (previously SFAS 160) on January 1, 2009. The information in the table above for the years prior to adoption of the new guidance has not been restated. The retrospective adoption of the new guidance would not have a material impact on the Ratio of Earnings to Fixed Charges or the Ratio of Earnings to Fixed Charges and Preferred Distributions for the prior years presented above. |
(2) | Interest expense includes interest expense of continuing and discontinued operations. |
(3) | In 2004, Post Apartment Homes, L.P. terminated a remarketing agreement related to its $100,000, 6.85% Mandatory Par Put Remarketed Securities due in 2015. In connection with the termination of the remarketing agreement, Post Apartment Homes, L.P. paid $10,615 (interest expense), including transaction expenses. Under the provisions of the remarketing agreement, the remarketing agent had the right to remarket the $100,000, unsecured notes in 2005 for a ten-year term at an interest rate calculated as 5.715% plus Post Apartment Homes, L.P.’s then current credit spread to the ten-year treasury rate. Post Apartment Homes, L.P. re-paid these unsecured notes in 2005. |
(4) | For the nine months ended September 30, 2009 and for the years ended December 31, 2008, 2007, 2006, 2005 and 2004, the interest factor of rental expense is calculated as one-third of rental expense. Post Apartment Homes, L.P. believes these represent appropriate interest factors. |
(5) | Post Apartment Homes, L.P. would need additional earnings of $20,674 for the nine months ended September 30, 2009 and $107,257, $18,722 and $50,181 for the years ended December 31, 2008, 2005 and 2004, respectively, for the Ratio of Earnings to Fixed Charges to equal 1.0. Post Apartment Homes, L.P. would need additional earnings of $26,402 for the nine months ended September 30, 2009 and $114,894, $26,359 and $65,812 for the years ended December 31, 2008, 2005 and 2004, respectively, for the Ratio of Earnings to Fixed Charges and Preferred Distributions to equal 1.0. |