Exhibit 12 | ||||||||||||
Statement of Ratios | ||||||||||||
Preferred Apartment Communities, Inc. | ||||||||||||
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends | ||||||||||||
Year ended December 31, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||
Earnings: | ||||||||||||
Net loss to the Company | $ | (614,530 | ) | $ | (8,495,423 | ) | $ | (766,199 | ) | |||
Add: | ||||||||||||
Combined fixed charges and preferred dividends (see below) | 2,955,485 | 1,514,580 | 15,064 | |||||||||
Total earnings | $ | 2,340,955 | $ | (6,980,843 | ) | $ | (751,135 | ) | ||||
Fixed charges: | ||||||||||||
Interest expense | $ | 2,310,667 | $ | 1,450,101 | $ | 15,064 | ||||||
Amortization of deferred loan costs related to mortgage indebtedness | 194,012 | 64,479 | - | |||||||||
Total fixed charges | 2,504,679 | 1,514,580 | 15,064 | |||||||||
Preferred dividends | 450,806 | - | - | |||||||||
Total Combined fixed charges and preferred dividends | $ | 2,955,485 | $ | 1,514,580 | $ | 15,064 | ||||||
Ratio of Earnings to Combined fixed charges and preferred dividends | (A) | (A) | (A) | |||||||||
(A) The computation of our ratios of earnings to combined fixed charges and preferred stock dividends indicates that earnings were inadequate to cover combined fixed charges and preferred stock dividends by approximately $615 thousand and $8.5 million for the twelve months ended December 31, 2012 and 2011, respectively. Since we commenced revenue-generating operations in April 2011, the ratio of earnings to fixed charges is not a meaningful measure for any period prior to 2011.