Exhibit 12.1
HCP, Inc.
RATIO OF EARNINGS TO FIXED CHARGES
and RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
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| Nine Months |
| Year ended December 31, |
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| September 30, |
| 2011 Pro |
| 2011 |
| 2010 |
| 2009 |
| 2008 |
| 2007 |
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RATIO OF EARNINGS TO FIXED CHARGES |
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Fixed Charges: |
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Interest Expense and Debt Amortization: |
| $ | 311,811 |
| $ | 427,259 |
| $ | 419,336 |
| $ | 288,657 |
| $ | 298,898 |
| $ | 349,313 |
| $ | 358,834 |
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Rental Expense |
| 4,812 |
| 6,235 |
| 6,186 |
| 5,939 |
| 6,039 |
| 6,008 |
| 8,151 |
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Capitalized Interest |
| 18,517 |
| 26,402 |
| 26,402 |
| 21,664 |
| 25,917 |
| 27,490 |
| 12,346 |
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Fixed Charges |
| $ | 335,140 |
| $ | 459,896 |
| $ | 451,924 |
| $ | 316,260 |
| $ | 330,854 |
| $ | 382,811 |
| $ | 379,331 |
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Earnings: |
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Pretax Income from Continuing Operations before Noncontrolling Interest and Income from Equity Investees |
| $ | 554,208 |
| $ | 591,742 |
| $ | 504,454 |
| $ | 387,797 |
| $ | 101,058 |
| $ | 228,785 |
| $ | 127,229 |
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Add Back Fixed Charges |
| 335,140 |
| 459,896 |
| 451,924 |
| 316,260 |
| 330,854 |
| 382,811 |
| 379,331 |
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Add Distributed Income from Equity Investees |
| 2,775 |
| 3,273 |
| 3,273 |
| 5,373 |
| 7,273 |
| 6,745 |
| 5,264 |
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Less Capitalized Interest |
| (18,517 | ) | (26,402 | ) | (26,402 | ) | (21,664 | ) | (25,917 | ) | (27,490 | ) | (12,346 | ) | |||||||
Less Noncontrolling Interest from Subsidiaries without Fixed Charges |
| (9,740 | ) | (16,466 | ) | (16,466 | ) | (15,517 | ) | (13,049 | ) | (17,996 | ) | (20,110 | ) | |||||||
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Total |
| $ | 863,866 |
| $ | 1,012,043 |
| $ | 916,783 |
| $ | 672,249 |
| $ | 400,219 |
| $ | 572,855 |
| $ | 479,368 |
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Ratio of Earnings to Fixed Charges |
| 2.58 |
| 2.20 |
| 2.03 |
| 2.13 |
| 1.21 |
| 1.50 |
| 1.26 |
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(1) The unaudited pro forma condensed consolidated statement of income data used in the pro forma calculations for the year ended December 31, 2011 was prepared under the purchase method of accounting as if the acquisition of HCR Properties, Inc. (HCR PropCo.”) and the approximate 10% ownership interest in the operations of HCR ManorCare, Inc. had been completed on January 1, 2011. 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 that date. Moreover, this information does not necessarily indicate what the future ratios of earnings to fixed charges will be.
