EXHIBIT 12
UDR, Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2008 | 2007 | 2008 | 2007 | |||||||||||||
Loss before discontinued operations, net of minority interests | $ | (15,310 | ) | $ | (12,530 | ) | $ | (39,955 | ) | $ | (38,348 | ) | ||||
Add (from continuing operations): | ||||||||||||||||
Interest on indebtedness (a) | 39,884 | 42,170 | 118,713 | 120,126 | ||||||||||||
Minority interests | (821 | ) | (904 | ) | (2,318 | ) | (2,974 | ) | ||||||||
Portion of rents representative of the interest factor | 528 | 203 | 1,391 | 602 | ||||||||||||
Earnings | $ | 24,281 | $ | 28,939 | $ | 77,831 | $ | 79,406 | ||||||||
Fixed charges and preferred stock dividend (from continuing operations): | ||||||||||||||||
Interest on indebtedness (a) | $ | 39,884 | $ | 42,170 | $ | 118,713 | $ | 120,126 | ||||||||
Capitalized interest | 3,673 | 3,254 | 10,815 | 9,109 | ||||||||||||
Portion of rents representative of the interest factor | 528 | 203 | 1,391 | 602 | ||||||||||||
Fixed Charges | 44,085 | 45,627 | 130,919 | 129,837 | ||||||||||||
Add: | ||||||||||||||||
Preferred stock dividend | 2,920 | 3,260 | 9,338 | 10,726 | ||||||||||||
Premium on preferred stock repurchases | (3,056 | ) | — | (3,056 | ) | 2,261 | ||||||||||
Combined fixed charges and preferred stock dividend | $ | 43,949 | $ | 48,887 | $ | 137,201 | $ | 142,824 | ||||||||
Ratio of earnings to fixed charges | — | — | — | — | ||||||||||||
Ratio of earnings to combined fixed charges and preferred stock dividends | — | — | — | — |
For the three months ended September 30, 2008, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $19.8 million and $19.7 million, respectively.
For the three months ended September 30, 2007, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $16.7 million and $19.9 million, respectively.
For the nine months ended September 30, 2008, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $53.1 million and $59.4 million, respectively.
For the nine months ended September 30, 2007, the ratio of earnings to fixed charges and the ratio of combined fixed charges and preferred stock dividends was deficient of achieving a 1:1 ratio by $50.4 million and $63.4 million, respectively.
(a) | Interest on indebtedness for the three and six months ended September 30, 2008 is presented gross of the gain on debt extinguishment of $2.5 million and $8.9 million, respectively. |