EPR Properties (EPR) 10-Q 2014 Q3 Quarterly report

EXHIBIT 12.2

EPR PROPERTIES

COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS

(Dollars in thousands)

	Nine Months Ended September 30,			Year Ended December 31,
	2014			2013			2012			2011			2010			2009
Earnings:
Income before equity in income from joint ventures and other items (1)	$	125,517		$	152,193		$	140,881		$	127,241		$	114,793		$	32,901
Fixed charges before preferred dividends	66,382			83,988			77,738			71,980			69,018			62,375
Distributions from equity investments	810			985			1,046			2,848			2,482			986
Capitalized interest	(4,982		)	(2,763		)	(859		)	(498		)	(383		)	(600		)
Adjusted Earnings	$	187,727		$	234,403		$	218,806		$	201,571		$	185,910		$	95,662
Fixed Charges:
Interest expense, net (including amortization of deferred financing fees)	$	61,254		$	81,056		$	76,656		$	71,295		$	68,462		$	61,579
Interest within rental expense(2)	121			145			156			154			136			121
Interest income	25			24			67			33			37			75
Capitalized interest	4,982			2,763			859			498			383			600
Preferred dividends	17,856			23,806			24,508			28,140			30,206			30,206
Combined Fixed Charges and Preferred Dividends	$	84,238		$	107,794		$	102,246		$	100,120		$	99,224		$	92,581
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends	2.2		x	2.2		x	2.1		x	2.0		x	1.9		x	1.0		x

(1)

Earnings before equity in income from joint ventures and other items for the nine months ended September 30, 2014 includes $3.8 million in provision for loan losses. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2013 includes $6.2 million in costs associated with loan refinancing and a $4.5 million gain on early extinguishment of debt. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2012 includes $3.1 million in impairment charges for properties held and used and $0.6 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2011 includes $2.5 million in impairment charges for properties held and used and $1.9 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2010 includes a $0.5 million impairment charge for other assets, $0.7 million in provision for loan losses and $11.4 million in costs associated with loan refinancing.  Earnings before equity in income from joint ventures and other items for the year ended December 31, 2009 includes $71.0 million in provision for loan losses and $0.1 million in costs associated with loan refinancing.

(2)

Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).