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)
| Six Months Ended June 30, 2015 | Year Ended December 31, | |||||||||||||||||||||||
| 2014 | 2013 | 2012 | 2011 | 2010 | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations (1) | $ | 39,636 | $ | 238,183 | $ | 81,122 | $ | 82,786 | $ | 24,717 | $ | (8,002 | ) | |||||||||||
Equity in loss (income) of unconsolidated entities | (965 | ) | (1,788 | ) | (2,090 | ) | (7,995 | ) | (1,001 | ) | (18,739 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Income (loss) from continuing operations before equity in loss (income) of unconsolidated entities | 38,671 | 236,395 | 79,032 | 74,791 | 23,716 | (26,741 | ) | |||||||||||||||||
Add: | ||||||||||||||||||||||||
Distribution of income from investments in unconsolidated entities | 1,055 | 2,077 | 2,865 | 3,236 | 1,744 | 1,076 | ||||||||||||||||||
Fixed charges, less preferred distribution requirement of consolidated subsidiaries | 19,164 | 46,112 | 51,969 | 55,156 | 63,025 | 65,443 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Capitalized interest | (2,219 | ) | (3,115 | ) | (3,962 | ) | (5,534 | ) | (3,000 | ) | (6,927 | ) | ||||||||||||
Minority interest in income of consolidated property partnerships not incurring fixed charges | — | — | — | — | — | (95 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Earnings (A) | $ | 56,671 | $ | 281,469 | $ | 129,904 | $ | 127,649 | $ | 85,485 | $ | 32,756 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed charges and preferred dividends: | ||||||||||||||||||||||||
Interest expense (2) | $ | 15,846 | $ | 40,286 | $ | 44,993 | $ | 46,419 | $ | 56,791 | $ | 54,613 | ||||||||||||
Amortization of deferred financing costs | 882 | 2,282 | 2,573 | 2,695 | 2,797 | 2,987 | ||||||||||||||||||
Capitalized interest | 2,219 | 3,115 | 3,962 | 5,534 | 3,000 | 6,927 | ||||||||||||||||||
Rentals (3) | 217 | 429 | 441 | 508 | 437 | 916 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Fixed Charges (B) | $ | 19,164 | $ | 46,112 | $ | 51,969 | $ | 55,156 | $ | 63,025 | $ | 65,443 | ||||||||||||
Preferred dividends, including redemption costs | 1,844 | 3,688 | 3,688 | 3,688 | 6,212 | 7,547 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total Fixed Charges and Preferred Dividends (C) | $ | 21,008 | $ | 49,800 | $ | 55,657 | $ | 58,844 | $ | 69,237 | $ | 72,990 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of Earnings to Fixed Charges (A / B) | 3.0 | x | 6.1 | x | 2.5 | x | 2.3 | x | 1.4 | x | 0.5 | x(4) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of Earnings to Fixed Charges and Preferred Dividends (A / C) | 2.7 | x | 5.7 | x | 2.3 | x | 2.2 | x | 1.2 | x | 0.4 | x(4) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (1) | Effective January 1, 2014, the Company early adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity.” Under ASU 2014-08, the Company included gains on sales of apartment communities of $187,825 in continuing operations for the year ended December 31, 2014. |
| (2) | Interest expense includes interest expense for continuing and discontinued operations. |
| (3) | For the six months ended June 30, 2015 and for the years ended December 31, 2014, 2013, 2012, 2011 and 2010, the interest factor of rental expense is calculated as one-third of rental expense. Post Properties, Inc. believes these represent appropriate interest factors. |
| (4) | Post Properties, Inc. would need additional earnings of $32,687 for the years ended December 31, 2010, for the Ratio of Earnings to Fixed Charges to equal 1.0. Post Properties, Inc. would need additional earnings of $40,234 years ended December 31, 2010 for the Ratio of Earnings to Fixed Charges and Preferred Dividends to equal 1.0. |