Exhibit 12.1
RETAIL PROPERTIES OF AMERICA, INC.
Computation of Ratio of Earnings to Fixed Charges
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
| Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
| 9/30/2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||||||
Earnings | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 28,285 | $ | (86,484 | ) | $ | 37,110 | $ | 3,832 | $ | 597 | $ | (42,855 | ) | ||||||||||
Equity in loss of unconsolidated joint ventures, net | — | — | — | — | 2,088 | 1,246 | ||||||||||||||||||
Gain on sales of investment properties, net | 37,211 | 337,975 | 129,707 | 121,792 | 42,196 | 5,806 | ||||||||||||||||||
Adjustments added: | ||||||||||||||||||||||||
Fixed charges (see below) | 59,366 | 149,890 | 113,539 | 142,987 | 137,944 | 150,685 | ||||||||||||||||||
Distributions on investments in unconsolidated joint ventures | — | — | — | — | 1,360 | 7,105 | ||||||||||||||||||
Adjustments subtracted: | ||||||||||||||||||||||||
Interest capitalized | (348 | ) | (485 | ) | (69 | ) | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total earnings | $ | 124,514 | $ | 400,896 | $ | 280,287 | $ | 268,611 | $ | 184,185 | $ | 121,987 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Fixed charges: | ||||||||||||||||||||||||
Interest expense | $ | 56,918 | $ | 146,092 | $ | 109,730 | $ | 138,938 | $ | 133,835 | $ | 146,805 | ||||||||||||
Interest capitalized | 348 | 485 | 69 | — | — | — | ||||||||||||||||||
Estimate of interest within rental expense | 2,100 | 3,313 | 3,740 | 4,049 | 4,109 | 3,880 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges | $ | 59,366 | $ | 149,890 | $ | 113,539 | $ | 142,987 | $ | 137,944 | $ | 150,685 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Preferred stock dividends | — | 13,867 | 9,450 | 9,450 | 9,450 | 9,450 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Total fixed charges and preferred stock dividends | $ | 59,366 | $ | 163,757 | $ | 122,989 | $ | 152,437 | $ | 147,394 | $ | 160,135 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to fixed charges | 2.10 | 2.67 | 2.47 | 1.88 | 1.34 | — | (1) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.10 | 2.45 | 2.28 | 1.76 | 1.25 | — | (2) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| (1) | The ratio was less than 1:1 for the year ended December 31, 2013 as earnings were inadequate to cover fixed charges by a deficiency of approximately $28.7 million. |
| (2) | The ratio was less than 1:1 for the year ended December 31, 2013 as earnings were inadequate to cover combined fixed charges and preferred stock dividends by a deficiency of approximately $38.1 million. |
