EXHIBIT 12.2
EPR PROPERTIES
COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income before equity in income from joint ventures and other items (1) | $ | 108,364 | $ | 219,601 | $ | 170,017 | $ | 177,278 | $ | 152,193 | $ | 140,881 | ||||||||||||
Fixed charges before preferred dividends | 69,252 | 108,068 | 98,672 | 88,996 | 83,988 | 77,738 | ||||||||||||||||||
Distributions from equity investments | 442 | 816 | 540 | 810 | 985 | 1,046 | ||||||||||||||||||
Capitalized interest | (5,341 | ) | (10,697 | ) | (18,547 | ) | (7,525 | ) | (2,763 | ) | (859 | ) | ||||||||||||
Adjusted Earnings | $ | 172,717 | $ | 317,788 | $ | 250,682 | $ | 259,559 | $ | 234,403 | $ | 218,806 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense, net (including amortization of deferred financing fees) | $ | 63,659 | $ | 97,144 | $ | 79,915 | $ | 81,270 | $ | 81,056 | $ | 76,656 | ||||||||||||
Interest within rental expense (2) | 170 | 227 | 185 | 174 | 145 | 156 | ||||||||||||||||||
Interest income | 82 | — | 25 | 27 | 24 | 67 | ||||||||||||||||||
Capitalized interest | 5,341 | 10,697 | 18,547 | 7,525 | 2,763 | 859 | ||||||||||||||||||
Preferred dividends | 11,904 | 23,806 | 23,806 | 23,807 | 23,806 | 24,508 | ||||||||||||||||||
Combined Fixed Charges and Preferred Dividends | $ | 81,156 | $ | 131,874 | $ | 122,478 | $ | 112,803 | $ | 107,794 | $ | 102,246 | ||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | 2.1 | x | 2.4 | x | 2.0 | x | 2.3 | x | 2.2 | x | 2.1 | x | ||||||||||||
(1) | Earnings before equity in income from joint ventures for the six months ended June 30, 2017 includes $10.2 million in impairment charges and a $1.0 million gain on early extinguishment of debt. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2016 includes $0.9 million in costs associated with loan payoff. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2015 includes $18.6 million of retirement severance expense and $0.3 million in costs associated with loan refinancing or payoff. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2014 includes $3.8 million in provision for loan losses and $0.3 million in costs associated with loan refinancing or payoff. 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 or payoff 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 or payoff. |
(2) | Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest). |