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)
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| | | | | Years Ended December 31, | |
| | | Six Months Ended June 30, 2018 | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | |
| | | | | | | | | | | | | | |
Income (loss) from continuing operations before noncontrolling interests (a) | | $ | 199,831 |
| | $ | 178,778 |
| | $ | (49,615 | ) | | $ | 144,506 |
| | $ | 104,991 |
| | $ | 139,349 |
| |
| Add: interest expense | | 75,012 |
| | 128,645 |
| | 106,953 |
| | 105,813 |
| | 79,299 |
| | 67,952 |
| |
| Subtract: noncontrolling interests in income of subsidiaries that have not incurred fixed charges | | (11,705 | ) | | (25,111 | ) | | (16,102 | ) | | (1,897 | ) | | (4,856 | ) | | (954 | ) | |
Earnings available for fixed charges (b) | | $ | 263,138 |
| | $ | 282,312 |
| | $ | 41,236 |
| | $ | 248,422 |
| | $ | 179,434 |
| | $ | 206,347 |
| |
| | | | | | | | | | | | | | |
| Fixed charges: | | | | | | | | | | | | | |
| Interest incurred | | $ | 103,899 |
| | $ | 186,867 |
| | $ | 159,403 |
| | $ | 142,353 |
| | $ | 126,287 |
| | $ | 128,038 |
| |
| | | | | | | | | | | | | | |
| Preferred stock dividends | | 2,604 |
| | 7,666 |
| | 20,223 |
| | 24,986 |
| | 25,698 |
| | 25,885 |
| |
| Preferred stock redemption charge | | — |
| | 11,279 |
| | 61,267 |
| | — |
| | 1,989 |
| | — |
| |
| Total combined fixed charges and preferred stock dividends | | $ | 106,503 |
| | $ | 205,812 |
| | $ | 240,893 |
| | $ | 167,339 |
| | $ | 153,974 |
| | $ | 153,923 |
| |
| | | | | | | | | | | | | | |
| Consolidated ratio of earnings to fixed charges | | 2.53 |
| (c) | 1.51 |
| (d) | 0.26 |
| (e) | 1.75 |
| (f) | 1.42 |
| (g) | 1.61 |
| |
| | | | | | | | | | | | | | |
| Consolidated ratio of earnings to combined fixed charges and preferred stock dividends | | 2.47 |
| (c) | 1.37 |
| (d) | 0.17 |
| (e) | 1.48 |
| (f) | 1.17 |
| (g) | 1.34 |
| |
| |
| (a) | Includes gains on sales of land parcels that are not attributable to discontinued operations and excludes equity in earnings from unconsolidated real estate 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 six months ended June 30, 2018, include the effect of impairment of real estate aggregating $6.3 million and unrealized gains aggregating $77.3 million classified within investment income in our consolidated statements of income. Excluding the impact of impairment of real estate and the unrealized gains, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the six months ended June 30, 2018, were 1.85 and 1.80, respectively. |
| |
| (d) | Ratios for the year ended December 31, 2017, include the effect of losses on early extinguishment of debt aggregating $3.5 million, a preferred stock redemption charge of $11.3 million, and impairment of real estate of $203 thousand. Excluding the impact of losses on early extinguishment of debt, 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 year ended December 31, 2017, were 1.53 and 1.47, respectively. |
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| (e) | Fixed charges and combined fixed charges and preferred stock dividends exceeded earnings by $118.2 million and $199.7 million, respectively, for the year ended December 31, 2016. Ratios for the year ended December 31, 2016, include the effect of losses on early extinguishment of debt aggregating $3.2 million, a preferred stock redemption charge of $61.3 million, and impairment of real estate of $209.3 million. Excluding the impact of losses on early extinguishment of debt, 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 year ended December 31, 2016, were 1.59 and 1.41, respectively. |
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| (f) | 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. |
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| (g) | 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. |
