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(1)
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| Nine Months Ended |
| Year Ended |
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| September 30, 2011 |
| December 31, 2010 |
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| (In thousands, except ratios) |
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PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES |
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Fixed Charges: |
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Interest Expense and Debt Amortization |
| $ | 325,825 |
| $ | 401,206 |
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Rental Expense |
| 4,735 |
| 6,122 |
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Capitalized Interest |
| 19,395 |
| 21,664 |
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Fixed Charges |
| $ | 349,955 |
| $ | 428,992 |
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Earnings: |
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Pretax Income (Loss) from Continuing Operations before minority Interest and Income from Equity investees |
| $ | 538,487 |
| $ | 726,881 |
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Add Back Fixed Charges |
| 349,955 |
| 428,992 |
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Add Distributed Income from Equity Investees |
| 2,462 |
| 5,373 |
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Less Capitalized Interest |
| (19,395 | ) | (21,664 | ) | ||
Less Minority Interest from Subsidiaries without fixed charges |
| (9,529 | ) | (15,517 | ) | ||
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Total |
| $ | 861,980 |
| $ | 1,124,065 |
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Ratio of Earnings to Fixed Charges |
| 2.46 |
| 2.62 |
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PRO FORMA RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS |
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Fixed Charges: |
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Interest Expense and Debt Amortization |
| $ | 325,825 |
| $ | 401,206 |
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Preferred Stock Dividend |
| 15,848 |
| 21,130 |
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Rental Expense |
| 4,735 |
| 6,122 |
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Capitalized Interest |
| 19,395 |
| 21,664 |
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Fixed Charges |
| $ | 365,803 |
| $ | 450,122 |
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Earnings (see above) |
| $ | 861,980 |
| $ | 1,124,065 |
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Ratio of Earnings to Fixed Charges |
| 2.36 |
| 2.50 |
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(1) The unaudited pro forma condensed consolidated statement of income data used in the pro forma calculations was prepared under the purchase method of accounting as if the acquisition of HCR Properties, LLC and the approximate 10% ownership interest in the operations of HCR ManorCare, Inc. had been completed (a) on January 1, 2010 for the Year Ended December 31, 2010 pro forma ratios, and (b) on January 1, 2011 for the Nine Months Ended September 30, 2011 pro forma ratios. We have included this information only for purposes of illustration, and it does not necessarily indicate what the ratios would have been if the acquisitions had actually been completed on those dates. Moreover, this information does not necessarily indicate what the future ratios of earnings to fixed charges will be.
