EXHIBIT 12.1
ALEXANDRIA REAL ESTATE EQUITIES, INC.
COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED STOCK DIVIDENDS
(in thousands, except ratios)
| | Nine Months
Ended | | Year Ended December 31, (a) | |
| | September 30, | | | | | | | | | | | |
| | 2007 | | 2006 | | 2005 | | 2004 | | 2003 | | 2002 (d) | |
| | | | | | | | | | | | | |
Income from continuing operations before minority interest | | $ | 66,200 | | $ | 74,189 | | $ | 60,551 | | $ | 55,961 | | $ | 45,092 | | $ | 34,867 | |
Add: Interest expense | | 64,374 | | 71,371 | | 49,116 | | 28,670 | | 26,416 | | 24,984 | |
Subtract: Minority interest in income of subsidiaries which have not incurred fixed charges | | (1,055 | ) | (1,404 | ) | (571 | ) | - | | - | | - | |
Earnings available for fixed charges | | $ | 129,519 | | $ | 144,156 | | $ | 109,096 | | $ | 84,631 | | $ | 71,508 | | $ | 59,851 | |
| | | | | | | | | | | | | |
Combined fixed charges and preferred stock dividends: | | | | | | | | | | | | | |
Interest incurred | | $ | 104,281 | | $ | 107,643 | | $ | 77,695 | | $ | 46,733 | | $ | 40,647 | | $ | 39,865 | |
Preferred stock dividends | | 9,305 | | 16,090 | | 16,090 | | 12,595 | | 8,898 | | 8,579 | |
Preferred stock redemption charge | | 2,799 | | - | | - | | 1,876 | | - | | - | |
| | | | | | | | | | | | | |
Total combined fixed charges and preferred stock dividends | | $ | 116,385 | | $ | 123,733 | | $ | 93,785 | | $ | 61,204 | | $ | 49,545 | | $ | 48,444 | |
| | | | | | | | | | | | | |
Ratio of earnings to combined fixed charges and preferred stock dividends (b) | | 1.11 | (c) | 1.17 | | 1.16 | | 1.38 | (c) | 1.44 | | 1.24 | |
(a) Amounts disclosed for prior periods have been reclassified to conform to the current year presentation related to discontinued operations.
(b) For purposes of calculating the consolidated ratio of earnings to combined fixed charges and preferred stock dividends, earnings consist of earnings from continuing operations before income taxes and fixed charges less minority interest in income of subsidiaries which have not incurred fixed charges. Fixed charges consist of interest incurred (including amortization of deferred financing costs and capitalized interest) and preferred stock dividends.
(c) Ratio of earnings to combined fixed charges and preferred stock dividends for the nine months ended September 30, 2007 and year ended December 31, 2004 include the effect of the preferred stock redemption charge pursuant to Emerging Issues Task Force Topic D-42. Excluding the impact of these charges, the ratio of earnings to combined fixed charges and preferred stock dividends for the nine months ended September 30, 2007 and year ended December 31, 2004 is 1.17 and 1.43, respectively.
(d) Pursuant to SFAS 145, “Rescission of FASB Statement Nos. 4, 44 and 64, Amendment of FASB Statement No. 13, and Technical Corrections”, in 2003 we reclassified the 2002 loss on early extinguishment of debt to continuing operations. In 2002, this loss was classified as an extraordinary item as previously required under SFAS 4, “Reporting Gains and Losses from Extinguishment of Debt”. Amounts shown for 2002 have been adjusted to reflect this reclassification.
