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
Year Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
Earnings | |||||||||||||||||||
Income (loss) from continuing operations | $ | 37,110 | $ | 3,832 | $ | 597 | $ | (42,855 | ) | $ | (14,368 | ) | |||||||
Equity in loss of unconsolidated joint ventures, net | — | — | 2,088 | 1,246 | 6,307 | ||||||||||||||
Gain on sales of investment properties, net | 129,707 | 121,792 | 42,196 | 5,806 | 7,843 | ||||||||||||||
Adjustments added: | |||||||||||||||||||
Fixed charges (see below) | 113,539 | 142,987 | 137,944 | 150,685 | 178,306 | ||||||||||||||
Distributions on investments in unconsolidated joint ventures | — | — | 1,360 | 7,105 | 6,168 | ||||||||||||||
Adjustments subtracted: | |||||||||||||||||||
Interest capitalized | (69 | ) | — | — | — | — | |||||||||||||
Total earnings | $ | 280,287 | $ | 268,611 | $ | 184,185 | $ | 121,987 | $ | 184,256 | |||||||||
Fixed charges: | |||||||||||||||||||
Interest expense | $ | 109,730 | $ | 138,938 | $ | 133,835 | $ | 146,805 | $ | 171,295 | |||||||||
Co-venture obligation expense (1) | — | — | — | — | 3,300 | ||||||||||||||
Interest capitalized | 69 | — | — | — | — | ||||||||||||||
Estimate of interest within rental expense | 3,740 | 4,049 | 4,109 | 3,880 | 3,711 | ||||||||||||||
Total fixed charges | $ | 113,539 | $ | 142,987 | $ | 137,944 | $ | 150,685 | $ | 178,306 | |||||||||
Preferred stock dividends | 9,450 | 9,450 | 9,450 | 9,450 | 263 | ||||||||||||||
Total fixed charges and preferred stock dividends | $ | 122,989 | $ | 152,437 | $ | 147,394 | $ | 160,135 | $ | 178,569 | |||||||||
Ratio of earnings to fixed charges | 2.47 | 1.88 | 1.34 | — | (2) | 1.03 | |||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | 2.28 | 1.76 | 1.25 | — | (3) | 1.03 |
(1) | Represents the preferred return and incentive and other compensation with respect to IW JV 2009, LLC. The Company redeemed the full amount of the noncontrolling interest on April 26, 2012. |
(2) | 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. |
(3) | 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 $38.1 million. |