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Computation of Ratio of Earning to fixed charges and Earnings to fixed charges and prefered stock dividends
| For the Years Ended December 31, | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||
| (In thousands) | |||||||||||||||
Earnings: | ||||||||||||||||
Net income before equity in earnings from joint ventures and unconsolidated subsidiaries, minority interest and other items | $ | 196,760 | $ | 269,350 | $ | 190,548 | $ | 199,247 | $ | 189,415 | ||||||
Add: Interest expense(1) | 232,919 | 194,999 | 185,362 | 170,121 | 173,891 | |||||||||||
Add: Implied interest component on the Company's rent obligations | 959 | 824 | 678 | 572 | 568 | |||||||||||
Add: Distributions from operations of joint ventures | 300 | 2,839 | 5,802 | 4,802 | 4,511 | |||||||||||
Subtract: Minority interest (expense) in pre-tax income of subsidiaries that have not incurred fixed charges | (225 | ) | — | — | — | — | ||||||||||
Total earnings | $ | 430,713 | $ | 468,012 | $ | 382,390 | $ | 374,742 | $ | 368,385 | ||||||
Fixed charges: | ||||||||||||||||
Interest expense(1) | $ | 232,919 | $ | 194,999 | $ | 185,362 | $ | 170,121 | $ | 173,891 | ||||||
Implied interest component on the Company's rent obligations | 959 | 824 | 678 | 572 | 568 | |||||||||||
Capitalized interest | — | — | 70 | 1,010 | 513 | |||||||||||
Fixed charges | $ | 233,878 | $ | 195,823 | $ | 186,110 | $ | 171,703 | $ | 174,972 | ||||||
Preferred dividend requirements | 51,340 | 36,908 | 36,908 | 36,908 | 36,908 | |||||||||||
Fixed charges and prefered stock dividends | $ | 285,218 | $ | 232,731 | $ | 223,018 | $ | 208,611 | $ | 211,880 | ||||||
Earnings to fixed charges(2) | 1.84x | 2.39x | 2.05x | 2.18x | 2.11x | |||||||||||
Earnings to fixed charges and preferred stock dividends(2) | 1.51x | 2.01x | 1.71x | 1.80x | 1.74x |
Explanatory Notes:
- (1)
- For the years ended December 31, 2004, 2003, 2002, 2001 and 2000, interest expense includes $1,892, $2,703, $430, $536 and $748 of interest expense reclassed to discontinued operations
- (2)
- These ratios give effect to the first quarter 2004 CEO, CFO and Acre Partners compensation charges of $106.9 million, the 8.75% Senior Notes due 2008 redemption charges of $11.5 million and the preferred stock redemption charge of $9.0 million. Excluding these charges, the ratio of earnings to fixed charges and the ratio of earnings to fixed charges and preferred stock dividends would have been 2.35x and 1.99x respectively.
Computation of Ratio of Earning to fixed charges and Earnings to fixed charges and prefered stock dividends