Exhibit 12.1
GGP Inc.
Consolidated Earnings to Fixed Charges
(Includes Distributions from Unconsolidated Real Estate Affiliates in excess of income)
| Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | 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) | $ | 66 | $ | 110 | $ | 667 | $ | 1,308 | $ | 1,394 | $ | 398 | $ | 329 | ||||||||||||||
Less: Provision for income taxes | — | 5 | (11 | ) | 1 | (38 | ) | 7 | — | |||||||||||||||||||
Less: Equity in (income) of Unconsolidated Real Estate Affiliates | (34 | ) | (33 | ) | (165 | ) | (283 | ) | (400 | ) | (61 | ) | (69 | ) | ||||||||||||||
Plus: Fixed Charges(2) | 138 | 122 | 508 | 540 | 577 | 695 | 746 | |||||||||||||||||||||
Plus: Amortization of capitalized interest | — | — | 1 | 1 | — | — | — | |||||||||||||||||||||
Plus: Distributions received from Unconsolidated Real Estate Affiliates(3) | 63 | 69 | 405 | 204 | 233 | 434 | 276 | |||||||||||||||||||||
Less: Capitalized interest | (4 | ) | (2 | ) | (11 | ) | (5 | ) | (13 | ) | (17 | ) | (11 | ) | ||||||||||||||
Less: Preferred unit distributions | (1 | ) | (2 | ) | (2 | ) | (9 | ) | (9 | ) | (9 | ) | (9 | ) | ||||||||||||||
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Earnings | $ | 227 | $ | 269 | $ | 1,392 | $ | 1,757 | $ | 1,744 | $ | 1,447 | $ | 1,262 | ||||||||||||||
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Net Interest | ||||||||||||||||||||||||||||
Interest expense | $ | 138 | $ | 132 | $ | 487 | $ | 571 | $ | 608 | $ | 699 | $ | 759 | ||||||||||||||
Interest income | (9 | ) | (18 | ) | (62 | ) | (60 | ) | (49 | ) | (29 | ) | (8 | ) | ||||||||||||||
Amortization of deferred finance costs | (3 | ) | (3 | ) | (11 | ) | (12 | ) | (12 | ) | (13 | ) | (9 | ) | ||||||||||||||
Debt extinguishment costs including gains/(losses) | — | — | 55 | — | — | — | (36 | ) | ||||||||||||||||||||
Amortization of market rate adjustments | 1 | 1 | 4 | 3 | — | (3 | ) | (9 | ) | |||||||||||||||||||
Write-off of market rate adjustments | — | — | — | 2 | (14 | ) | (10 | ) | 6 | |||||||||||||||||||
Othernon-cash interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||
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Net interest | $ | 127 | $ | 112 | $ | 473 | $ | 504 | $ | 533 | $ | 644 | $ | 703 | ||||||||||||||
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| Three Months Ended March 31, 2018 | Three Months Ended March 31, 2017 | 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 | $ | 127 | $ | 112 | 473 | 504 | 533 | 644 | 703 | |||||||||||||||||||
Ground rent expense | 2 | 2 | 6 | 6 | 6 | 9 | 9 | |||||||||||||||||||||
Capitalized interest | 4 | 2 | 11 | 5 | 13 | 17 | 11 | |||||||||||||||||||||
Preferred unit distributions | 1 | 2 | 2 | 9 | 9 | 9 | 9 | |||||||||||||||||||||
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Total fixed charges | 134 | 118 | 492 | 524 | 561 | 679 | 732 | |||||||||||||||||||||
Preferred stock distributions | 4 | 4 | 16 | 16 | 16 | 16 | 14 | |||||||||||||||||||||
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Combined fixed charges and preferred stock distributions | $ | 138 | $ | 122 | $ | 508 | $ | 540 | $ | 577 | $ | 695 | $ | 746 | ||||||||||||||
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Ratio of consolidated earnings to total fixed charges | 1.70 | 2.28 | 2.83 | 3.35 | 3.11 | 2.13 | 1.72 | |||||||||||||||||||||
Ratio of consolidated earnings to combined fixed charges and preferred stock distributions | 1.65 | 2.21 | 2.74 | 3.25 | 3.02 | 2.08 | 1.69 | |||||||||||||||||||||
| (1) - | Income from continuing operations component of earnings includes non-cash charges for depreciation and amortization expense and provisions for impairment. Depreciation and amortization expense included in Income from continuing operations was $185.4 million, $170.3 million, $693.3 million, $660.7 million, $643.7 million, $708.4 million, $749.7 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. Provisions for impairment included in Income from continuing operations was $38.4 million, $0.0 million, $0.0 million, $73.0 million, $8.6 million and $5.3 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. |
| (2) - | Earnings exceeded fixed charges by $93.2 million, $151.0 million, $899.7 million, $1,232.1 million, $1,182.1 million, $768.2 million and $529.8 million for the three months ended March 31, 2018, three months ended March 31, 2017 and for the years ended December 31, 2017, 2016, 2015, 2014 and 2013, respectively. |
| (3) - | Includes both operating and investing distributions. |
