Exhibit 12.3
Computation of Ratio of Earning to fixed charges and Earnings to fixed charges and prefered stock dividends
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| For the Years Ended December 31, |
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| 2005 |
| 2004 |
| 2003 |
| 2002 |
| 2001 |
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| (In thousands, except ratios) |
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Earnings: |
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Net income before equity in earnings from joint ventures and unconsolidated subsidiaries, minority interest and other items |
| $ | 277,702 |
| $ | 193,020 |
| $ | 264,561 |
| $ | 187,067 |
| $ | 195,709 |
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Add: Interest expense(1) |
| 313,053 |
| 232,919 |
| 194,999 |
| 185,362 |
| 170,121 |
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Add: Implied interest component on the Company’s rent obligations |
| 1,024 |
| 959 |
| 824 |
| 678 |
| 572 |
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Add: Distributions from operations of joint ventures |
| — |
| 300 |
| 2,839 |
| 5,802 |
| 4,802 |
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Subtract: Minority interest (expense) in pre-tax income of subsidiaries that have not incurred fixed charges |
| 691 |
| (225 | ) | — |
| — |
| — |
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Total earnings |
| $ | 592,470 |
| $ | 426,973 |
| $ | 463,223 |
| $ | 378,909 |
| $ | 371,204 |
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Fixed charges: |
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Interest expense(1) |
| 313,053 |
| $ | 232,919 |
| $ | 194,999 |
| $ | 185,362 |
| $ | 170,121 |
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Implied interest component on the Company’s rent obligations |
| 1,024 |
| 959 |
| 824 |
| 678 |
| 572 |
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Capitalized interest |
| 788 |
| — |
| — |
| 70 |
| 1,010 |
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Fixed charges |
| $ | 314,865 |
| $ | 233,878 |
| $ | 195,823 |
| $ | 186,110 |
| $ | 171,703 |
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Preferred dividend requirements |
| 42,320 |
| 51,340 |
| 36,908 |
| 36,908 |
| 36,908 |
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Fixed charges and prefered stock dividends |
| $ | 357,185 |
| $ | 285,218 |
| $ | 232,731 |
| $ | 223,018 |
| $ | 208,611 |
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Earnings to fixed charges(2) |
| 1.88x |
| 1.83x |
| 2.37x |
| 2.04x |
| 2.16x |
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Earnings to fixed charges and preferred stock dividends(2) |
| 1.66x |
| 1.50x |
| 1.99x |
| 1.70x |
| 1.78x |
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Explanatory Notes:
(1) For the years ended December 31, 2005, 2004, 2003, 2002 and 2001, interest expense includes $0, $190, $337, $348 and $536, 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, 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 2.33x and 1.97x, respectively.