Preferred Apartment Communities (APTS) 10-Q 2017 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,
	2017			2016			2015			2014			2013			2012
Earnings:
Net income (loss)	$	33,408,461		$	(9,843,414	)	$	(2,425,989	)	$	2,127,203		$	(4,205,492	)	$	(146,630	)
Add:
Fixed charges	48,085,016			44,284,144			21,315,731			10,188,187			5,780,526			2,504,679
Less: Net (income) loss attributable to
non-controlling interests	(1,097,008		)	310,291			25,321			(33,714		)	222,404			—
Total earnings	$	80,396,469		$	34,751,021		$	18,915,063		$	12,281,676		$	1,797,438		$	2,358,049
Fixed charges:
Interest expense	$	44,178,263		$	40,688,714		$	19,841,455		$	9,183,128		$	4,921,797		$	2,310,667
Amortization of deferred loan costs
related to mortgage indebtedness	3,906,753			3,595,429			1,474,276			1,005,059			858,729			194,012
Total fixed charges	48,085,016			44,284,143			21,315,731			10,188,187			5,780,526			2,504,679
Preferred dividends	46,042,181			41,080,645			18,751,934			7,382,320			3,963,146			450,806
Total Combined fixed charges and
preferred dividends	$	94,127,197		$	85,364,788		$	40,067,665		$	17,570,507		$	9,743,672		$	2,955,485
Ratio of Earnings to Combined fixed
charges and preferred dividends (A)	0.85			0.41			0.47			0.7			0.18			0.80

(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 $13.7 million, $50.6 million, $21.2 million, $5.3 million, $7.9 million and $597,000 for the nine months ended September 30, 2017 and the twelve months ended December 31, 2016, 2015, 2014, 2013 and 2012, 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.