Exhibit 12.1
Kennedy-Wilson Holdings, Inc.
Statement of Computation of Earnings to Combined Fixed Charges and Preferred Dividends
| Nine Months Ended | Year Ended December 31, | |||||||||||||||||||||||
| September 30, 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | |||||||||||||||||||
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 | $ | (8,568,000 | ) | $ | 5,121,000 | $ | 10,212,000 | $ | (13,618,000 | ) | $ | 1,272,000 | $ | 13,421,000 | ||||||||||
- Equity in earnings from real estate ventures | (12,472,000 | ) | (12,507,000 | ) | (10,548,000 | ) | (8,019,000 | ) | (10,097,000 | ) | (27,433,000 | ) | ||||||||||||
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| (21,040,000 | ) | (7,386,000 | ) | (336,000 | ) | (21,637,000 | ) | (8,825,000 | ) | (14,012,000 | ) | |||||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 23,306,000 | 24,737,000 | 9,412,000 | 14,751,000 | 10,781,000 | 6,400,000 | ||||||||||||||||||
Distributions from equity investees—operating | 20,671,000 | 3,567,000 | 5,931,000 | 514,000 | 294,000 | 885,000 | ||||||||||||||||||
Interest capitalized | (1,792,000 | ) | (2,716,000 | ) | (790,000 | ) | — | (999,000 | ) | (519,000 | ) | |||||||||||||
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Total earnings | $ | 21,145,000 | $ | 18,202,000 | $ | 14,217,000 | $ | (6,372,000 | ) | $ | 1,251,000 | $ | (7,246,000 | ) | ||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
-Expensed | $ | 19,979,000 | $ | 20,507,000 | $ | 7,634,000 | $ | 13,174,000 | $ | 8,596,000 | $ | 5,090,000 | ||||||||||||
-Capitalized | 1,792,000 | 2,716,000 | 790,000 | — | 999,000 | 519,000 | ||||||||||||||||||
Amortization related to indebtedness | 845,000 | 812,000 | 262,000 | 917,000 | 658,000 | 296,000 | ||||||||||||||||||
Amortization of premiums and discounts | 40,000 | 41,000 | — | — | — | — | ||||||||||||||||||
Estimated interest within rental expense | 650,000 | 661,000 | 726,000 | 660,000 | 528,000 | 495,000 | ||||||||||||||||||
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Total fixed charges | 23,306,000 | 24,737,000 | 9,412,000 | 14,751,000 | 10,781,000 | 6,400,000 | ||||||||||||||||||
Preferred stock dividends | 6,075,000 | 8,744,000 | 4,558,000 | — | — | — | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 29,381,000 | $ | 33,481,000 | $ | 13,970,000 | $ | 14,751,000 | $ | 10,781,000 | $ | 6,400,000 | ||||||||||||
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Ratio of earnings to fixed charges | n/a | n/a | 1.51 | n/a | n/a | n/a | ||||||||||||||||||
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Amount of deficiency | $ | 2,161,000 | $ | 6,535,000 | n/a | $ | 21,123,000 | $ | 9,530,000 | $ | 13,646,000 | |||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | n/a | n/a | 1.02 | n/a | n/a | n/a | ||||||||||||||||||
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Amount of deficiency | $ | 8,236,000 | $ | 15,279,000 | n/a | $ | 21,123,000 | $ | 9,530,000 | $ | 13,646 ,000 | |||||||||||||
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