Exhibit 12.1
Kennedy-Wilson Holdings, Inc.
Statement of Computation of Earnings to Combined Fixed Charges and Preferred Dividends
| Six Months Ended | Year Ended December 31, | |||||||||||||||||||||||
| June 30, 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
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 | $ | (6,312,000 | ) | $ | 6,841,000 | $ | 5,121,000 | $ | 10,212,000 | $ | (13,618,000 | ) | $ | 1,272,000 | ||||||||||
- Equity in earnings from real estate ventures | 11,576,000 | (21,527,000 | ) | (12,507,000 | ) | (10,548,000 | ) | (8,019,000 | ) | (10,097,000 | ) | |||||||||||||
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| 5,264,000 | (14,686,000 | ) | (7,386,000 | ) | ||||||||||||||||||||
| (336,000 | ) | (21,637,000 | ) | (8,825,000 | ) | |||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||
Fixed charges | 25,806,000 | 32,960,000 | 24,737,000 | 9,412,000 | 14,751,000 | 10,781,000 | ||||||||||||||||||
Distributed income of equity investees | 12,782,000 | 30,432,000 | 3,567,000 | 5,931,000 | 514,000 | 294,000 | ||||||||||||||||||
Interest capitalized | (804,000 | ) | (2,258,000 | ) | (2,716,000 | ) | (790,000 | ) | 0 | (999,000 | ) | |||||||||||||
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Total earnings | $ | 43,048,000 | $ | 46,448,000 | $ | 18,202,000 | $ | 14,217,000 | $ | (6,372,000 | ) | $ | 1,251,000 | |||||||||||
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Fixed charges: | ||||||||||||||||||||||||
Interest | ||||||||||||||||||||||||
- Expensed | $ | 23,963,000 | $ | 28,595,000 | $ | 20,507,000 | $ | 7,634,000 | $ | 13,174,000 | $ | 8,596,000 | ||||||||||||
- Capitalized | 804,000 | 2,258,000 | 2,716,000 | 790,000 | 0 | 999,000 | ||||||||||||||||||
Amortization related to indebtedness | 1,061,000 | 1,205,000 | 812,000 | 262,000 | 917,000 | 658,000 | ||||||||||||||||||
Amortization of premiums and discounts | (542,000 | ) | 5,000 | 41,000 | ||||||||||||||||||||
Estimated interest within rental expense | 520,000 | 897,000 | 661,000 | 726,000 | 660,000 | 528,000 | ||||||||||||||||||
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Total fixed charges | 25,806,000 | 32,960,000 | 24,737,000 | 9,412,000 | 14,751,000 | 10,781,000 | ||||||||||||||||||
Preferred stock dividends | 4,072,000 | 8,144,000 | 8,744,000 | 4,558,000 | — | — | ||||||||||||||||||
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Total combined fixed charges and preferred stock dividends | $ | 29,878,000 | 41,104,000 | $ | 33,481,000 | $ | 13,970,000 | $ | 14,751,000 | $ | 10,781,000 | |||||||||||||
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Ratio of earnings to fixed charges | 1.67 | 1.41 | n/a | 1.51 | n/a | n/a | ||||||||||||||||||
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Amount of deficiency | — | — | $ | 6,535,000 | — | $ | 21,123,000 | $ | 9,530,000 | |||||||||||||||
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Ratio of earnings to combined fixed charges and preferred stock dividends | 1.44 | 1.13 | n/a | 1.02 | n/a | n/a | ||||||||||||||||||
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Amount of deficiency | — | — | $ | 15,279,000 | — | $ | 21,123,000 | $ | 9,530,000 | |||||||||||||||
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