EXHIBIT 12
HOST HOTELS & RESORTS, INC. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDENDS
(in millions, except ratio amounts)
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||||
Income (loss) from operations before income taxes | $ | 314 | $ | 149 | $ | (92 | ) | $ | (265 | ) | $ | (90 | ) | |||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges | 526 | 525 | 574 | 606 | 576 | |||||||||||||||
Capitalized interest | (5 | ) | (5 | ) | (3 | ) | (2 | ) | (2 | ) | ||||||||||
Amortization of capitalized interest | 6 | 6 | 6 | 6 | 6 | |||||||||||||||
Minority interest in consolidated affiliates | 41 | 16 | 4 | 5 | 7 | |||||||||||||||
Net losses related to certain 50% or less owned affiliates | 6 | 1 | 16 | 22 | 9 | |||||||||||||||
Distributions from equity investments | 3 | 2 | 6 | 3 | 6 | |||||||||||||||
Dividends on preferred stock | (14 | ) | (27 | ) | (37 | ) | (37 | ) | (37 | ) | ||||||||||
Issuance costs of redeemed preferred stock | (6 | ) | (4 | ) | (4 | ) | — | — | ||||||||||||
Adjusted earnings | $ | 871 | $ | 663 | $ | 470 | $ | 338 | $ | 475 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 450 | $ | 443 | $ | 483 | $ | 488 | $ | 458 | ||||||||||
Capitalized interest | 5 | 5 | 3 | 2 | 2 | |||||||||||||||
Dividends on convertible preferred securities of subsidiary trust | — | — | — | 32 | 32 | |||||||||||||||
Dividends on preferred stock | 14 | 27 | 37 | 37 | 37 | |||||||||||||||
Issuance costs of redeemed preferred stock | 6 | 4 | 4 | — | — | |||||||||||||||
Portion of rents representative of the interest factor | 51 | 46 | 47 | 47 | 47 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 526 | $ | 525 | $ | 574 | $ | 606 | $ | 576 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 1.7 | 1.3 | — | — | — | |||||||||||||||
Deficiency of earnings to fixed charges and preferred stock dividends | $ | — | $ | — | $ | (104 | ) | $ | (268 | ) | $ | (101 | ) |