UDR (UDR) 10-K 2016 FY Annual report

EXHIBIT 12.1

UDR, Inc.

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

(Dollars in thousands)

	2016		2015		2014			2013			2012
Earnings:
Income/(loss) from continuing operations	$	109,529	$	105,482	$	16,260		$	2,340		$	(46,305	)
Add (from continuing operations):
Interest on indebtedness (a)	123,031		121,875		130,262			125,905			139,069
Portion of rents representative of the interest factor	1,923		1,922		2,224			2,163			2,073
Amortization of capitalized interest	4,599		4,112		3,711			3,374			2,883
Total earnings	$	239,082	$	233,391	$	152,457		$	133,782		$	97,720
Fixed charges and preferred stock dividends (from continuing operations):
Interest on indebtedness (a)	$	123,031	$	121,875	$	130,262		$	125,905		$	139,069
Interest capitalized	16,482		16,105		20,249			29,384			26,368
Portion of rents representative of the interest factor	1,923		1,922		2,224			2,163			2,073
Fixed charges	$	141,436	$	139,902	$	152,735		$	157,452		$	167,510
Add:
Preferred stock dividends	$	3,717	$	3,722	$	3,724		$	3,724		$	6,010
Premium/(discount) on preferred stock redemption or repurchase, net	—		—		—			—			2,791
Combined fixed charges and preferred stock dividends	$	145,153	$	143,624	$	156,459		$	161,176		$	176,311
Ratio of earnings to fixed charges	1.69		1.67		—		(b)	—		(b)	—			(b)
Ratio of earnings to combined fixed charges and preferred stock dividends	1.65		1.63		—		(c)	—		(c)	—			(c)

(a) Includes interest expense of consolidated subsidiaries, amortization of deferred loan costs, realized losses related to hedging activities and amortization of premiums and discounts related to indebtedness.

(b) The ratio was less than 1:1 for the years ended December 31, 2014, 2013, and 2012 as earnings were inadequate to cover fixed charges by deficiencies of approximately $0.3 million, $23.7 million, and $69.8 million, respectively.

(c) The ratio was less than 1:1 for the years ended December 31, 2014, 2013, and 2012 as earnings were inadequate to cover combined fixed charges and preferred stock dividends by deficiencies of approximately $4.0 million, $27.4 million, and $78.6 million, respectively.