Exhibit 12.1
GGP Inc.
Consolidated Earnings to Fixed Charges
(Includes Distributions from Unconsolidated Real Estate Affiliates in excess of income)
Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Earnings | ||||||||||||||||||||
Income from continuing operations(1) | $ | 667 | $ | 1,308 | $ | 1,394 | $ | 398 | $ | 329 | ||||||||||
Less: Provision for income taxes | (11 | ) | 1 | (38 | ) | 7 | — | |||||||||||||
Less: Equity in (income) of Unconsolidated Real Estate Affiliates | (165 | ) | (283 | ) | (400 | ) | (61 | ) | (69 | ) | ||||||||||
Plus: Fixed Charges(2) | 508 | 540 | 577 | 695 | 746 | |||||||||||||||
Plus: Amortization of capitalized interest | 1 | 1 | — | — | — | |||||||||||||||
Plus: Distributions received from Unconsolidated Real Estate Affiliates(3) | 405 | 204 | 233 | 434 | 276 | |||||||||||||||
Less: Capitalized interest | (11 | ) | (5 | ) | (13 | ) | (17 | ) | (11 | ) | ||||||||||
Less: Preferred unit distributions | (2 | ) | (9 | ) | (9 | ) | (9 | ) | (9 | ) | ||||||||||
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Earnings | $ | 1,392 | $ | 1,757 | $ | 1,744 | $ | 1,447 | $ | 1,262 | ||||||||||
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Net Interest | ||||||||||||||||||||
Interest expense | $ | 487 | $ | 571 | $ | 608 | $ | 699 | $ | 759 | ||||||||||
Interest income | (62 | ) | (60 | ) | (49 | ) | (29 | ) | (8 | ) | ||||||||||
Amortization of deferred finance costs | (11 | ) | (12 | ) | (12 | ) | (13 | ) | (9 | ) | ||||||||||
Debt extinguishment costs including gains/(losses) | 55 | — | — | — | (36 | ) | ||||||||||||||
Amortization of market rate adjustments | 4 | 3 | — | (3 | ) | (9 | ) | |||||||||||||
Write-off of market rate adjustments | — | 2 | (14 | ) | (10 | ) | 6 | |||||||||||||
Othernon-cash interest expense | — | — | — | — | — | |||||||||||||||
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Net interest | $ | 473 | $ | 504 | $ | 533 | $ | 644 | $ | 703 | ||||||||||
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Year Ended December 31, 2017 | Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | ||||||||||||||||
(Dollars in millions) | ||||||||||||||||||||
Fixed Charges | ||||||||||||||||||||
Net Interest | 473 | 504 | 533 | 644 | 703 | |||||||||||||||
Ground rent expense | 6 | 6 | 6 | 9 | 9 | |||||||||||||||
Capitalized interest | 11 | 5 | 13 | 17 | 11 | |||||||||||||||
Preferred unit distributions | 2 | 9 | 9 | 9 | 9 | |||||||||||||||
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Total fixed charges | 492 | 524 | 561 | 679 | 732 | |||||||||||||||
Preferred stock distributions | 16 | 16 | 16 | 16 | 14 | |||||||||||||||
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Combined fixed charges and preferred stock distributions | $ | 508 | $ | 540 | $ | 577 | $ | 695 | $ | 746 | ||||||||||
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Ratio of consolidated earnings to total fixed charges | 2.83 | 3.35 | 3.11 | 2.13 | 1.72 | |||||||||||||||
Ratio of consolidated earnings to combined fixed charges and preferred stock distributions | 2.74 | 3.25 | 3.02 | 2.08 | 1.69 |
(1) - | Income from continuing operations component of earnings includesnon-cash charges for depreciation and amortization expense and provisions for impairment. Depreciation and amortization expense included in Income from continuing operations was $693.3 million, $660.7 million, $643.7 million, $708.4 million, $749.7 million for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. Provisions for impairment included in Income from continuing operations was $0.0 million, $73.0 million, $8.6 million, $5.3 million and $0.0 million for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. |
(2) - | Earnings exceeded fixed charges by $899.7 million, $1,232.1 million, $1,182.1 million, $768.2 million and $529.8 million for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. |
(3) - | Includes both operating and investing distributions. |