Exhibit 12.1
HUDSON PACIFIC PROPERTIES, INC.
STATEMENT OF COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND
CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND
PREFERRED DIVIDENDS
(Unaudited; in thousands, except ratios)
Consolidated | ||||||||||||||||||||
For the year ended December 31, | ||||||||||||||||||||
2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||||
Earnings: | ||||||||||||||||||||
Net income (loss) from continuing operations before income from unconsolidated joint ventures | 91,492 | 42,106 | (16,082 | ) | 23,686 | 1,415 | ||||||||||||||
Plus: | ||||||||||||||||||||
Fixed Charges (see below) | 103,023 | 89,668 | 58,951 | 33,685 | 30,925 | |||||||||||||||
Distributions from unconsolidated entities | 3,329 | 1,188 | — | — | — | |||||||||||||||
Amortization of capitalized interest | 867 | 577 | 410 | 232 | 115 | |||||||||||||||
Less: | ||||||||||||||||||||
Capitalized interest | (10,655 | ) | (11,307 | ) | (6,516 | ) | (6,938 | ) | (4,562 | ) | ||||||||||
Preferred distributions of consolidated subsidiaries | (636 | ) | (636 | ) | (636 | ) | (641 | ) | (749 | ) | ||||||||||
Noncontrolling interest in income of subsidiaries that have not incurred fixed charges | (12,191 | ) | (9,577 | ) | (5,837 | ) | — | — | ||||||||||||
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Total Earnings | 175,229 | 112,019 | 30,290 | 50,024 | 27,144 | |||||||||||||||
Fixed Charges | ||||||||||||||||||||
Interest expense (including amortization of loan fees and discounts) | 90,037 | 76,044 | 50,667 | 25,932 | 25,470 | |||||||||||||||
Capitalized interest | 10,655 | 11,307 | 6,516 | 6,938 | 4,562 | |||||||||||||||
Preferred distributions of consolidated subsidiaries | 636 | 636 | 636 | 641 | 749 | |||||||||||||||
Estimate of interest within rental expense | 1,695 | 1,681 | 1,132 | 174 | 144 | |||||||||||||||
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Total Fixed Charges | 103,023 | 89,668 | 58,951 | 33,685 | 30,925 | |||||||||||||||
Preferred Dividends | — | — | 11,469 | 12,144 | 12,144 | |||||||||||||||
Distributions on redemption of preferred units | — | — | 5,970 | — | — | |||||||||||||||
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Combined fixed charges and preferred dividends | 103,023 | 89,668 | 76,390 | 45,829 | 43,069 | |||||||||||||||
Earnings to Fixed Charges | ||||||||||||||||||||
Ratio | 1.70 | 1.25 | 1.49 | |||||||||||||||||
Deficiency | $ | 28,661 | $ | 3,781 | ||||||||||||||||
Earnings to Combined Fixed Charges | ||||||||||||||||||||
Ratio | 1.70 | 1.25 | 1.09 | |||||||||||||||||
Deficiency | $ | 46,100 | $ | 15,925 |