Exhibit 12.1
HCP, Inc.
RATIO OF EARNINGS TO FIXED CHARGES
and RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| | Nine Months Ended | | Year ended December 31, | |
| | September 30, 2010 | | 2009 | | 2008 | | 2007 | | 2006 | | 2005 | |
| | (In thousands, except ratios) | |
RATIO OF EARNINGS TO FIXED CHARGES | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | |
Interest Expense and Debt Amortization: | | $ | 220,303 | | $ | 298,898 | | $ | 349,313 | | $ | 358,834 | | $ | 213,331 | | $ | 107,201 | |
Rental Expense | | 4,391 | | 6,039 | | 6,008 | | 8,151 | | 4,212 | | 2,614 | |
Capitalized Interest | | 15,514 | | 25,917 | | 27,490 | | 12,346 | | 895 | | 637 | |
| | | | | | | | | | | | | |
Fixed Charges | | $ | 240,208 | | $ | 330,854 | | $ | 382,811 | | $ | 379,331 | | $ | 218,438 | | $ | 110,452 | |
| | | | | | | | | | | | | |
Earnings: | | | | | | | | | | | | | |
Pretax Income from Continuing Operations before Minority Interest and Income from Equity Investees | | $ | 261,734 | | $ | 99,711 | | $ | 225,559 | | $ | 124,927 | | $ | 33,331 | | $ | 52,887 | |
Add Back Fixed Charges | | 240,208 | | 330,854 | | 382,811 | | 379,331 | | 218,438 | | 110,452 | |
Add Distributed Income from Equity Investees | | 5,441 | | 7,273 | | 6,745 | | 5,264 | | 8,331 | | — | |
Less Capitalized Interest | | (15,514 | ) | (25,917 | ) | (27,490 | ) | (12,346 | ) | (895 | ) | (637 | ) |
Less Minority Interest from Subsidiaries without Fixed Charges | | (9,174 | ) | (13,049 | ) | (17,996 | ) | (20,110 | ) | (19,895 | ) | (13,644 | ) |
| | | | | | | | | | | | | |
Total | | $ | 482,695 | | $ | 398,872 | | $ | 569,629 | | $ | 477,066 | | $ | 239,310 | | $ | 149,058 | |
| | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | 2.01 | | 1.21 | | 1.49 | | 1.26 | | 1.10 | | 1.35 | |
| | | | | | | | | | | | | |
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | |
Interest Expense and Debt Amortization: | | $ | 220,303 | | $ | 298,898 | | $ | 349,313 | | $ | 358,834 | | $ | 213,331 | | $ | 107,201 | |
Preferred Stock Dividend | | 15,848 | | 21,130 | | 21,130 | | 21,130 | | 21,130 | | 21,130 | |
Rental Expense | | 4,391 | | 6,039 | | 6,008 | | 8,151 | | 4,212 | | 2,614 | |
Capitalized Interest | | 15,514 | | 25,917 | | 27,490 | | 12,346 | | 895 | | 637 | |
| | | | | | | | | | | | | |
Fixed Charges | | $ | 256,056 | | $ | 351,984 | | $ | 403,941 | | $ | 400,461 | | $ | 239,568 | | $ | 131,582 | |
| | | | | | | | | | | | | |
Earnings (see above) | | $ | 482,695 | | $ | 398,872 | | $ | 569,629 | | $ | 477,066 | | $ | 239,310 | | $ | 149,058 | |
| | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | 1.89 | | 1.13 | | 1.41 | | 1.19 | | — | (1) | 1.13 | |
(1) For the Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends for Year Ended December 31, 2006, fixed charges exceeded earnings resulting in a deficiency of $258,000.
