Alexandria Real Estate Equities (ARE) 10-Q 2016 Q1 Quarterly report

EXHIBIT 12.1

ALEXANDRIA REAL ESTATE EQUITIES, INC.

COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED

CHARGES AND PREFERRED STOCK DIVIDENDS

(in thousands, except ratios)

	Three Months Ended March 31, 2016				Years Ended December 31,
					2015				2014				2013			2012				2011
Income from continuing operations before noncontrolling interests (a)	$	10,363			$	144,506			$	104,991			$	139,349		$	96,712			$	117,316
Add: interest expense	24,855				105,813				79,299				67,952			69,184				63,373
Subtract: noncontrolling interests in income of subsidiaries that have not incurred fixed charges	(4,030		)		(1,897		)		(4,856		)		(954		)	(955		)		(1,323		)
Earnings available for fixed charges (b)	$	31,188			$	248,422			$	179,434			$	206,347		$	164,941			$	179,366
Fixed charges:
Interest incurred	$	36,954			$	142,353			$	126,287			$	128,038		$	131,424			$	120,610
Preferred stock dividends	5,907				24,986				25,698				25,885			27,328				28,357
Preferred stock redemption charge	3,046				—				1,989				—			5,978				—
Total combined fixed charges and preferred stock dividends	$	45,907			$	167,339			$	153,974			$	153,923		$	164,730			$	148,967
Consolidated ratio of earnings to fixed charges	0.84			(c)	1.75			(d)	1.42			(e)	1.61			1.26			(f)	1.49
Consolidated ratio of earnings to combined fixed charges and preferred stock dividends	0.68			(c)	1.48			(d)	1.17			(e)	1.34			1.00			(f)	1.20

(a) Includes gains on sales of land parcels that are not attributable to discontinued operations and excludes equity in earnings from unconsolidated joint ventures.

(b) For purposes of calculating the consolidated ratio of earnings to fixed charges and consolidated ratio of earnings to combined fixed charges and preferred stock dividends, earnings consist of income from continuing operations before noncontrolling interests and interest expense less noncontrolling interests in income of subsidiaries that have not incurred fixed charges. Fixed charges consist of interest incurred (including amortization of deferred financing costs and capitalized interest).

(c) Ratios for the three months ended March 31, 2016, include the effect of a preferred stock redemption charge of $3.0 million and impairment of real estate of $29.0 million. Excluding the impact of the preferred stock redemption charge and the impairment of real estate, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the three months ended March 31, 2016, were 1.63 and 1.38, respectively.

(d) Ratios for the year ended December 31, 2015, include the effect of losses on early extinguishment of debt of $189 thousand and impairment of real estate of $23.3 million. Excluding the impact of losses on early extinguishment of debt and the impairment of real estate, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2015, were 1.91 and 1.62, respectively.

(e) Ratios for the year ended December 31, 2014, include the effect of losses on early extinguishment of debt aggregating $525 thousand, a preferred stock redemption charge of $2.0 million, impairment of land parcel of $24.7 million, and impairment of real estate of $27.0 million. Excluding the impact of losses on early extinguishment of debt, the preferred stock redemption charge, the impairment of land parcel, and the impairment of real estate, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2014, were 1.83 and 1.52, respectively.

(f) Ratios for the year ended December 31, 2012, include the effect of losses on early extinguishment of debt aggregating $2.2 million, a preferred stock redemption charge of $6.0 million, impairment of land parcel of $2.1 million, and impairment of real estate of $11.4 million. Excluding the impact of losses on early extinguishment of debt, the preferred stock redemption charge, the impairment of land parcel, and the impairment of real estate, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2012, were 1.42 and 1.13, respectively.