Computation of Ratio of Earning to fixed charges and
Earnings to fixed charges and preferred stock dividends
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| For the Years Ended December 31, |
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| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Earnings: |
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Net income before equity in earnings (loss) from joint ventures and unconsolidated subsidiaries, minority interest and other |
| $ | 338,096 |
| $ | 272,186 |
| $ | 185,178 |
| $ | 256,194 |
| $ | 178,168 |
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Add: Fixed Charges as calculated below |
| 433,609 |
| 314,865 |
| 233,877 |
| 195,823 |
| 186,110 |
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Add: Distributions of earnings of joint ventures |
| 13,276 |
| 6,672 |
| 5,840 |
| 2,839 |
| 5,802 |
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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 | ) | — |
| — |
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Total earnings |
| $ | 781,971 |
| $ | 592,244 |
| $ | 424,670 |
| $ | 454,856 |
| $ | 370,010 |
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Fixed charges: |
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Interest expense (1) |
| $ | 429,807 |
| $ | 313,053 |
| $ | 232,918 |
| $ | 194,999 |
| $ | 185,362 |
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Plus: Capitalized interest |
| 1,917 |
| 788 |
| — |
| — |
| 70 |
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Implied interest component on the company’s rent obligations |
| 1,885 |
| 1,024 |
| 959 |
| 824 |
| 678 |
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Fixed charges |
| $ | 433,609 |
| $ | 314,865 |
| $ | 233,877 |
| $ | 195,823 |
| $ | 186,110 |
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Preferred dividend requirements |
| 42,320 |
| 42,320 |
| 51,340 |
| 36,908 |
| 36,908 |
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Fixed charges and preferred stock dividends |
| $ | 475,929 |
| $ | 357,185 |
| $ | 285,217 |
| $ | 232,731 |
| $ | 223,018 |
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Earnings to fixed charges(2) |
| 1.8x |
| 1.9x |
| 1.8x |
| 2.3x |
| 2.0x |
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Earnings to fixed charges and preferred stock dividends(3) |
| 1.6x |
| 1.7x |
| 1.5x |
| 2.0x |
| 1.7x |
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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.