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Computation of Ratio of Earning to fixed charges and
Earnings to fixed charges and preferred stock dividends
| For the Years Ended December 31, | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2006 | 2005 | 2004 | 2003 | 2002 | |||||||||||||
Earnings: | ||||||||||||||||||
Net income before equity in earnings (loss) from joint ventures and unconsolidated subsidiaries, minority interest and other items | $ | 338,096 | $ | 272,186 | $ | 185,178 | $ | 256,194 | $ | 178,168 | ||||||||
Add: Fixed Charges as calculated below | 433,609 | 314,865 | 233,877 | 195,823 | 186,110 | |||||||||||||
Add: Distributions of earnings of joint ventures | 13,276 | 6,672 | 5,840 | 2,839 | 5,802 | |||||||||||||
Subtract: Capitalized interest | (1,917 | ) | (788 | ) | — | — | (70 | ) | ||||||||||
Subtract: Minority interest (expense) in pre-tax income of subsidiaries that have not incurred fixed charges | (1,093 | ) | (691 | ) | (225 | ) | — | — | ||||||||||
Total earnings | $ | 781,971 | $ | 592,244 | $ | 424,670 | $ | 454,856 | $ | 370,010 | ||||||||
Fixed charges: | ||||||||||||||||||
Interest expense (1) | $ | 429,807 | $ | 313,053 | $ | 232,918 | $ | 194,999 | $ | 185,362 | ||||||||
Plus: Capitalized interest | 1,917 | 788 | — | — | 70 | |||||||||||||
Implied interest component on the company's rent obligations | 1,885 | 1,024 | 959 | 824 | 678 | |||||||||||||
Fixed charges | $ | 433,609 | $ | 314,865 | $ | 233,877 | $ | 195,823 | $ | 186,110 | ||||||||
Preferred dividend requirements | 42,320 | 42,320 | 51,340 | 36,908 | 36,908 | |||||||||||||
Fixed charges and preferred stock dividends | $ | 475,929 | $ | 357,185 | $ | 285,217 | $ | 232,731 | $ | 223,018 | ||||||||
Earnings to fixed charges(2) | 1.8x | 1.9x | 1.8x | 2.3x | 2.0x | |||||||||||||
Earnings to fixed charges and preferred stock dividends(3) | 1.6x | 1.7x | 1.5x | 2.0x | 1.7x |
Explanatory Notes:
- (1)
- For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, interest expense includes $0, $0, $190, $337 and $348, respectively, of interest expense reclassed to discontinued operations.
- (2)
- The ratio for 2004 gives effect to the CEO, CFO and ACRE Partners compensation charges of $106.9 million and the 8.75% Senior Notes due 2008 redemption charges of $11.5 million. Excluding these charges, the ratio of earnings to fixed charges would have been 2.3x.
- (3)
- The ratio for 2004 excludes the preferred stock redemption charge of $9.0 million. Excluding this charge, the ratio of earnings to fixed charges and preferred stock dividends would have been 2.0x.
Computation of Ratio of Earning to fixed charges and Earnings to fixed charges and preferred stock dividends