Exhibit 12.2
HCP, Inc.
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES AND PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| | YTD JUN-07 | | YTD DEC-06 | |
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES | | (In thousands, except ratios) | |
| | | | | |
Fixed Charges: | | | | | |
Interest Expense and Debt Amortization | | $ | 237,699 | | $ | 552,548 | |
Rental Expense | | 3,030 | | 6,110 | |
Capitalized Interest | | 9,992 | | 21,404 | |
| | | | | |
Fixed Charges | | $ | 250,721 | | $ | 580,062 | |
| | | | | |
Earnings: | | | | | |
Pretax Income (Loss) from Continuing Operations before minority Interest and Income from Equity investees | | 16,337 | | (114,968 | ) |
Add Back Fixed Charges | | 250,721 | | 580,062 | |
Add Distributed Income from Equity Investees | | 3,110 | | 10,565 | |
Add Losses from Equity Investees for which charges arising from guarantees are included in fixed charges | | (532 | ) | (69 | ) |
Less Capitalized Interest | | (9,992 | ) | (21,404 | ) |
Less Minority Interest from Subsidiaries without fixed charges | | (3,641 | ) | (9,474 | ) |
| | | | | |
Total | | $ | 256,003 | | $ | 444,712 | |
| | | | | |
Ratio of Earnings to Fixed Charges (1) | | 1.02 | | — | |
| | | | | |
PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS | | | | | |
| | | | | |
Fixed Charges: | | | | | |
Interest Expense and Debt Amortization | | $ | 237,699 | | $ | 552,548 | |
Preferred Stock Dividend | | 10,566 | | 21,130 | |
Rental Expense | | 3,030 | | 6,110 | |
Capitalized Interest | | 9,992 | | 21,404 | |
| | | | | |
Fixed Charges | | $ | 261,287 | | $ | 601,192 | |
| | | | | |
Earnings (see above) | | $ | 256,003 | | $ | 444,712 | |
| | | | | |
Ratio of Earnings to Fixed Charges (2) | | — | | — | |
(1) For the Pro Forma Ratio of Earnings to Fixed Charges for Year Ended December 31, 2006, pro forma fixed charges exceeded pro forma earnings resulting in a deficiency of $135 million.
(2) For the Pro Forma Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends for Year Ended December 31, 2006 and for the Six Months ended June 30, 2007, pro forma fixed charges exceeded pro forma earnings resulting in deficiencies of $156 million and $5 million, respectively.
