Exhibit 12.1
POST PROPERTIES, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
| Three Months Ended March 31, 2012 | ||||||||||||||||||||||||
| Year Ended December 31, | ||||||||||||||||||||||||
| 2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 21,865 | $ | 25,595 | $ | (6,991 | ) | $ | (95,727 | ) | $ | (96,147 | ) | $ | 107,049 | |||||||||
Equity in loss (income) of unconsolidated entities | 6,446 | (1,001 | ) | (18,739 | ) | 74,447 | (1,224 | ) | (1,556 | ) | ||||||||||||||
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Income (loss) from continuing operations before equity in loss (income) of unconsolidated entities | 28,311 | 24,594 | (25,730 | ) | (21,280 | ) | (97,371 | ) | 105,493 | |||||||||||||||
Add: | ||||||||||||||||||||||||
Distribution of income from investments in unconsolidated entities | 1,183 | 1,744 | 1,076 | 1,677 | 2,650 | 2,554 | ||||||||||||||||||
Fixed charges, less preferred distribution requirement of consolidated subsidiaries | 13,723 | 63,025 | 65,443 | 69,569 | 69,774 | 69,854 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Capitalized interest | (1,321 | ) | (3,000 | ) | (6,927 | ) | (12,259 | ) | (12,406 | ) | (11,801 | ) | ||||||||||||
Minority interest in income of consolidated property partnerships not incurring fixed charges | — | — | (95 | ) | — | (130 | ) | (1,603 | ) | |||||||||||||||
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Total Earnings (A) | $ | 41,896 | $ | 86,363 | $ | 33,767 | $ | 37,707 | $ | (37,483 | ) | $ | 164,497 | |||||||||||
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Fixed charges and preferred dividends: | ||||||||||||||||||||||||
Interest expense (1) | $ | 11,645 | $ | 56,791 | $ | 54,613 | $ | 53,154 | $ | 52,779 | $ | 53,633 | ||||||||||||
Amortization of deferred financing costs | 661 | 2,797 | 2,987 | 3,079 | 3,473 | 3,297 | ||||||||||||||||||
Capitalized interest | 1,321 | 3,000 | 6,927 | 12,259 | 12,406 | 11,801 | ||||||||||||||||||
Rentals (2) | 96 | 437 | 916 | 1,077 | 1,116 | 1,123 | ||||||||||||||||||
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Total Fixed Charges (B) | $ | 13,723 | $ | 63,025 | $ | 65,443 | $ | 69,569 | $ | 69,774 | $ | 69,854 | ||||||||||||
Preferred dividends, including redemption costs | 922 | 6,212 | 7,547 | 7,637 | 7,637 | 7,637 | ||||||||||||||||||
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Total Fixed Charges and Stock Dividends (C) | $ | 14,645 | $ | 69,237 | $ | 72,990 | $ | 77,206 | $ | 77,411 | $ | 77,491 | ||||||||||||
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Ratio of Earnings to Fixed Charges (A / B) | 3.1 | x | 1.4 | x | 0.5 | x(3) | 0.5 | x(3) | N/A | (3) | 2.4 | x | ||||||||||||
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Ratio of Earnings to Fixed Charges and Preferred Dividends (A / C) | 2.9 | x | 1.2 | x | 0.5 | x (3) | 0.5 | x(3) | N/A | (3) | 2.1 | x | ||||||||||||
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| (1) | Interest expense includes interest expense of continuing and discontinued operations. |
| (2) | For the three months ended March 31, 2012 and for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, the interest factor of rental expense is calculated as one-third of rental expense. Post Properties, Inc. believes these represent appropriate interest factors. |
| (3) | Post Properties, Inc. would need additional earnings of $31,676, $31,862 and $107,257 for the years ended December 31, 2010, 2009 and 2008, respectively, for the Ratio of Earnings to Fixed Charges to equal 1.0. Post Properties, Inc. would need additional earnings of $39,223, $39,499 and $114,894 for the years ended December 31, 2010, 2009 and 2008, respectively, for the Ratio of Earnings to Fixed Charges and Preferred Dividends to equal 1.0. |
