Exhibit 12.1
Kennedy-Wilson Holdings, Inc.
Statement of Computation of Earnings to Combined Fixed Charges and Preferred Dividends
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| | | Six Months
Ended | | | Year Ended December 31, | |
| | | June 30, 2012 | | | 2011 | | | 2010 | | | 2009 | | | 2008 | | | 2007 | |
Earnings: | | | | | | | | | | | | | | | | | | | | | | | | |
Pre-tax income from continuing operations before adjustment for income or loss from equity investees: | | | | | | | | | | | | | | | | | | | | | | | | |
- Income (loss) before (provision for) benefit from income taxes | | $ | (1,926,000 | ) | | $ | 5,121,000 | | | $ | 10,212,000 | | | $ | (13,618,000 | ) | | $ | 1,272,000 | | | $ | 13,421,000 | |
- Equity in earnings from real estate ventures | | | (10,624,000 | ) | | | (12,507,000 | ) | | | (10,548,000 | ) | | | (8,019,000 | ) | | | (10,097,000 | ) | | | (27,433,000 | ) |
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| | | (12,550,000 | ) | | | (7,386,000 | ) | | | (336,000 | ) | | | (21,637,000 | ) | | | (8,825,000 | ) | | | (14,012,000 | ) |
Adjustments: | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed charges | | | 15,655,000 | | | | 24,737,000 | | | | 9,412,000 | | | | 14,751,000 | | | | 10,781,000 | | | | 6,400,000 | |
Distributions from equity investees—operating | | | 15,248,000 | | | | 3,567,000 | | | | 5,931,000 | | | | 514,000 | | | | 294,000 | | | | 885,000 | |
Interest capitalized | | | (1,359,000 | ) | | | (2,716,000 | ) | | | (790,000 | ) | | | — | | | | (999,000 | ) | | | (519,000 | ) |
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Total earnings | | $ | 16,994,000 | | | $ | 18,202,000 | | | $ | 14,217,000 | | | $ | (6,372,000 | ) | | $ | 1,251,000 | | | $ | (7,246,000 | ) |
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Fixed charges: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest | | | | | | | | | | | | | | | | | | | | | | | | |
-Expensed | | $ | 13,224,000 | | | $ | 20,507,000 | | | $ | 7,634,000 | | | $ | 13,174,000 | | | $ | 8,596,000 | | | $ | 5,090,000 | |
-Capitalized | | | 1,359,000 | | | | 2,716,000 | | | | 790,000 | | | | — | | | | 999,000 | | | | 519,000 | |
Amortization related to indebtedness | | | 625,000 | | | | 812,000 | | | | 262,000 | | | | 917,000 | | | | 658,000 | | | | 296,000 | |
Amortization of premiums and discounts | | | 26,000 | | | | 41,000 | | | | — | | | | — | | | | — | | | | — | |
Estimated interest within rental expense | | | 421,000 | | | | 661,000 | | | | 726,000 | | | | 660,000 | | | | 528,000 | | | | 495,000 | |
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Total fixed charges | | | 15,655,000 | | | | 24,737,000 | | | | 9,412,000 | | | | 14,751,000 | | | | 10,781,000 | | | | 6,400,000 | |
Preferred stock dividends | | | 4,072,000 | | | | 8,744,000 | | | | 4,558,000 | | | | — | | | | — | | | | — | |
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Total combined fixed charges and preferred stock dividends | | $ | 19,727,000 | | | $ | 33,481,000 | | | $ | 13,970,000 | | | $ | 14,751,000 | | | $ | 10,781,000 | | | $ | 6,400,000 | |
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Ratio of earnings to fixed charges | | | 1.09 | | | | n/a | | | | 1.51 | | | | n/a | | | | n/a | | | | n/a | |
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Amount of deficiency | | | n/a | | | $ | 6,535,000 | | | | n/a | | | $ | 21,123,000 | | | $ | 9,530,000 | | | $ | 13,646,000 | |
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Ratio of earnings to combined fixed charges and preferred stock dividends | | | n/a | | | | n/a | | | | 1.02 | | | | n/a | | | | n/a | | | | n/a | |
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Amount of deficiency | | $ | 2,733,000 | | | $ | 15,279,000 | | | | n/a | | | $ | 21,123,000 | | | $ | 9,530,000 | | | $ | 13,646 ,000 | |
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