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)
| 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 | ) | ||||||||||||
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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: | ||||||||||||||||||||||||
Distributions of income from investments in unconsolidated entities | 1,055 | 2,077 | 2,865 | 3,236 | 1,744 | 1,076 | ||||||||||||||||||
Fixed charges | 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 | ) | |||||||||||||||||
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Total Earnings (A) | $ | 56,671 | $ | 281,469 | $ | 129,904 | $ | 127,649 | $ | 85,485 | $ | 32,756 | ||||||||||||
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Fixed charges and preferred distributions: | ||||||||||||||||||||||||
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 | ||||||||||||||||||
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Total Fixed Charges (B) | $ | 19,164 | $ | 46,112 | $ | 51,969 | $ | 55,156 | $ | 63,025 | $ | 65,443 | ||||||||||||
Preferred distributions, including redemption costs | 1,844 | 3,688 | 3,688 | 3,688 | 6,212 | 7,547 | ||||||||||||||||||
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Total Fixed Charges and Preferred Distributions (C) | $ | 21,008 | $ | 49,800 | $ | 55,657 | $ | 58,844 | $ | 69,237 | $ | 72,990 | ||||||||||||
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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) | ||||||||||||
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Ratio of Earnings to Fixed Charges and Preferred Distributions (A / C) | 2.7 | x | 5.7 | x | 2.3 | x | 2.2 | x | 1.2 | x | 0.4 | x (4) | ||||||||||||
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| (1) | Effective January 1, 2014, the Operating Partnership early adopted ASU 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of Entity.” Under ASU 2014-08, the Operating Partnership 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 Apartment Homes, L.P. believes these represent appropriate interest factors. |
| (4) | Post Apartment Homes, L.P. 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 Apartment Homes, L.P. 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. |