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)
2007 | 2006 | 2005 | 2004 | 2003 | ||||||||||||||||
Income (loss) from operations before income taxes | $ | 550 | $ | 296 | $ | 136 | $ | (101 | ) | $ | (271 | ) | ||||||||
Add (deduct): | ||||||||||||||||||||
Fixed charges | 493 | 526 | 525 | 574 | 606 | |||||||||||||||
Capitalized interest | (10 | ) | (5 | ) | (5 | ) | (3 | ) | (2 | ) | ||||||||||
Amortization of capitalized interest | 6 | 6 | 6 | 6 | 6 | |||||||||||||||
Minority interest in consolidated affiliates | 32 | 41 | 16 | 4 | 5 | |||||||||||||||
Net (earnings)/losses related to certain 50% or less owned affiliates | (11 | ) | 6 | 1 | 16 | 22 | ||||||||||||||
Distributions from equity investments | 4 | 3 | 2 | 6 | 3 | |||||||||||||||
Dividends on preferred stock | (9 | ) | (14 | ) | (27 | ) | (37 | ) | (37 | ) | ||||||||||
Issuance costs of redeemed preferred stock | — | (6 | ) | (4 | ) | (4 | ) | — | ||||||||||||
Adjusted earnings | $ | 1,055 | $ | 853 | $ | 650 | $ | 461 | $ | 332 | ||||||||||
Fixed charges: | ||||||||||||||||||||
Interest on indebtedness and amortization of deferred financing costs | $ | 422 | $ | 450 | $ | 443 | $ | 483 | $ | 488 | ||||||||||
Capitalized interest | 10 | 5 | 5 | 3 | 2 | |||||||||||||||
Dividends on convertible preferred securities of subsidiary trust | — | — | — | — | 32 | |||||||||||||||
Dividends on preferred stock | 9 | 14 | 27 | 37 | 37 | |||||||||||||||
Issuance costs of redeemed preferred stock | — | 6 | 4 | 4 | — | |||||||||||||||
Portion of rents representative of the interest factor | 52 | 51 | 46 | 47 | 47 | |||||||||||||||
Total fixed charges and preferred stock dividends | $ | 493 | $ | 526 | $ | 525 | $ | 574 | $ | 606 | ||||||||||
Ratio of earnings to fixed charges and preferred stock dividends | 2.1 | 1.6 | 1.2 | — | — | |||||||||||||||
Deficiency of earnings to fixed charges and preferred stock dividends | $ | — | $ | — | $ | — | $ | (113 | ) | $ | (274 | ) |