Exhibit 12.1
Kennedy-Wilson Holdings, Inc.
Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
| 6 months Ended | ||||||||||||||||||||||||
| June 30, 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | |||||||||||||||||||
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 | $ | 14,800,000 | $ | 112,400,000 | $ | 122,500,000 | $ | 16,800,000 | $ | 6,841,000 | $ | 5,121,000 | ||||||||||||
- Equity in earnings from real estate ventures (deduct income) | (27,600,000 | ) | (97,400,000 | ) | (54,200,000 | ) | (41,400,000 | ) | (21,527,000 | ) | (12,507,000 | ) | ||||||||||||
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| (12,800,000 | ) | 15,000,000 | 68,300,000 | (24,600,000 | ) | (14,686,000 | ) | (7,386,000 | ) | |||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 96,926,000 | 166,580,000 | 136,314,000 | 55,382,000 | 32,960,000 | 24,737,000 | ||||||||||||||||||
Distributions from equity investees—operating | 17,900,000 | 88,500,000 | 88,800,000 | 67,700,000 | 30,432,000 | 3,567,000 | ||||||||||||||||||
Interest capitalized | 0 | (200,000 | ) | 0 | (800,000 | ) | (2,258,000 | ) | (2,716,000 | ) | ||||||||||||||
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Total earnings | $ | 102,026,000 | $ | 269,880,000 | $ | 293,414,000 | $ | 97,682,000 | $ | 46,448,000 | $ | 18,202,000 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
- Expensed | 90,400,000 | 156,700,000 | 130,700,000 | 51,700,000 | 28,595,000 | 20,507,000 | ||||||||||||||||||
- Capitalized | 0 | 200,000 | 0 | 800,000 | 2,258,000 | 2,716,000 | ||||||||||||||||||
Amortization related to indebtedness—(6063-1000) | 5,819,000 | 8,156,000 | 4,114,000 | 2,160,000 | 1,205,000 | 812,000 | ||||||||||||||||||
Amortization of premiums and discounts | 5,000 | 41,000 | ||||||||||||||||||||||
Estimated interest within rental expense | 707,000 | 1,524,000 | 1,500,000 | 722,000 | 897,000 | 661,000 | ||||||||||||||||||
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Total fixed charges | $ | 96,926,000 | $ | 166,580,000 | $ | 136,314,000 | $ | 55,382,000 | $ | 32,960,000 | $ | 24,737,000 | ||||||||||||
Preferred stock dividends | 1,100,000 | 3,600,000 | 8,100,000 | 8,100,000 | 8,144,000 | 8,744,000 | ||||||||||||||||||
Total combined fixed charges and preferred stock dividends | 98,026,000 | 170,180,000 | 144,414,000 | 63,482,000 | 41,104,000 | 33,481,000 | ||||||||||||||||||
Ratio of earnings to fixed charges | 1.05 | 1.62 | 2.15 | 1.76 | 1.41 | N/A | ||||||||||||||||||
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Amount of deficiency | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 6,535,000 | ||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 1.04 | 1.59 | 2.03 | 1.54 | 1.13 | N/A | ||||||||||||||||||
Amount of deficiency recap of rent expense | 0 | 0 | 0 | 0 | 0 | 15,279,000 | ||||||||||||||||||
Net rental expense (5310-1000 and 5310-1100) | 2,141,000 | 4,618,000 | 4,546,000 | 2,188,000 | 2,718,000 | 2,004,000 | ||||||||||||||||||
Interest in rent—33% | 707,000 | 1,524,000 | 1,500,000 | 722,000 | 897,000 | 661,000 | ||||||||||||||||||
8765-0200: Loan Fee Amort—Corporate | 1,287,789 | 2,161,867 | 2,367,909 | |||||||||||||||||||||
8765-0300: Loan Fee Amort—Investments | 4,531,145 | 5,993,773 | 1,746,235 | 2,160,164 | ||||||||||||||||||||
8375-0800: Rent (G&A) | 2,111,522 | 4,375,350 | 4,322,105 | 2,069,934 | ||||||||||||||||||||
8375-1000: Parking | 29,586 | 242,846 | 223,919 | 118,059 | ||||||||||||||||||||
