Exhibit 12.1
ESSEX PORTFOLIO, L.P. AND SUBSIDIARIES
Schedule of computation of Ratio and Earnings to Fixed Charges and Preferred Stock Dividends
(Dollars in thousands, except ratios)
|
| Years ended December 31 |
| |||||||||||||
|
| 2004 |
| 2003(1) |
| 2002(1) |
| 2001(1) |
| 2000(1) |
| |||||
Earnings: |
|
|
|
|
|
|
|
|
|
|
| |||||
Income from continuing operations |
| $ | 103,020 |
| $ | 55,238 |
| $ | 64,247 |
| $ | 72,038 |
| $ | 67,109 |
|
Gain on sales of real estate |
| (7,909 | ) | — |
| (145 | ) | (3,788 | ) | (4,022 | ) | |||||
Minority interests |
| 3,498 |
| 4,134 |
| 3,664 |
| 196 |
| 372 |
| |||||
Interest expense (2) |
| 63,023 |
| 52,410 |
| 43,186 |
| 38,746 |
| 30,163 |
| |||||
Amortization of deferred financing costs |
| 1,587 |
| 1,197 |
| 814 |
| 657 |
| 639 |
| |||||
Total earnings |
| $ | 163,219 |
| $ | 112,979 |
| $ | 111,766 |
| $ | 107,849 |
| $ | 94,261 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Fixed charges: |
|
|
|
|
|
|
|
|
|
|
| |||||
Interest expense (2) |
| $ | 63,023 |
| $ | 52,410 |
| $ | 43,186 |
| $ | 38,746 |
| $ | 30,163 |
|
Amortization of deferred financing costs |
| 1,587 |
| 1,197 |
| 814 |
| 657 |
| 639 |
| |||||
Capitalized interest |
| 1,997 |
| 4,084 |
| 6,814 |
| 3,917 |
| 2,906 |
| |||||
Convertible preferred stock dividends |
| — |
| — |
| — |
| — |
| 245 |
| |||||
Preferred return to general partner - Series F |
| 1,952 |
| 195 |
| — |
| — |
| — |
| |||||
Perpetual preferred unit distributions |
| 14,174 |
| 17,996 |
| 18,319 |
| 18,319 |
| 18,319 |
| |||||
Total fixed charges and preferred stock dividends |
| $ | 82,733 |
| $ | 75,882 |
| $ | 69,133 |
| $ | 61,639 |
| $ | 52,272 |
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio of earnings to fixed charges (excluding preferred return and preferred unit distributions) |
| 2.45 | X | 1.96 | X | 2.20 | X | 2.49 | X | 2.80 | X | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Ratio of earnings to combined fixed charges and preferred stock dividends |
| 1.97 | X | 1.49 | X | 1.62 | X | 1.75 | X | 1.80 | X |
(1) The above financial and operating information from January 1, 2002 through December 31, 2003 reflect the retroactive adoption of FIN 46R and SFAS 123. The above financial and operating information from January 1, 2000 through December 31, 2001 have not been restated to reflect the retroactive adoption of FIN 46R and SFAS 123 and have not been reclassified to present properties sold as discontinued operations. Because the 2000 and 2001 balances have not been restated, the results for those periods may not be comparable to the results for the later periods set forth above.
(2) Extraordinary item - loss on early extinguishment of debt of $119 for the year ended December 31, 2000 has been reclassified as interest expense in accordance with the adoption of SFAS 145 on January 1, 2003.