Preferred Apartment Communities (APTS) 10-Q 2016 Q3 Quarterly report

Exhibit 12
Statement of Ratios
Preferred Apartment Communities, Inc.
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
	Nine months ended September 30,			Year ended December 31,
	2016			2015			2014			2013			2012			2011
Earnings:
Net income (loss)	$	(5,860,631	)	$	(2,425,989	)	$	2,127,203		$	(4,205,492	)	$	(146,630	)	$	(8,495,424	)
Add:
Fixed charges	30,688,505			21,315,731			10,188,187			5,780,526			2,504,679			1,514,581
Less: Net (income) loss attributable to
non-controlling interests	175,045			25,321			(33,714		)	222,404			—			—
Total earnings	$	25,002,919		$	18,915,063		$	12,281,676		$	1,797,438		$	2,358,049		$	(6,980,843	)
Fixed charges:
Interest expense	$	28,256,696		$	19,841,455		$	9,183,128		$	4,921,797		$	2,310,667		$	1,450,101
Amortization of deferred loan costs
related to mortgage indebtedness	2,431,809			1,474,276			1,005,059			858,729			194,012			64,480
Total fixed charges	30,688,505			21,315,731			10,188,187			5,780,526			2,504,679			1,514,581
Preferred dividends	28,341,723			18,751,934			7,382,320			3,963,146			450,806			—
Total Combined fixed charges and
preferred dividends	$	59,030,228		$	40,067,665		$	17,570,507		$	9,743,672		$	2,955,485		$	1,514,581
Ratio of Earnings to Combined fixed
charges and preferred dividends	0.42			0.47			0.70			0.18			0.80			(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 $34.0 million, $21.2 million, $5.3 million, $7.9 million, $597,000 and $8.5 million for the nine months ended September 30, 2016 and the twelve months ended December 31, 2015, 2014, 2013, 2012 and 2011, respectively. Our net loss to common stockholders for the year ended December 31, 2013 includes the effect of a one-time deemed non-cash dividend of approximately $7.0 million related to a beneficial conversion feature within our Series B Preferred Stock, all of which was converted to Common Stock on May 16, 2013. Combined fixed charges and preferred dividends for the twelve months ended December 31, 2013 do not reflect the deemed non-cash dividend.