Exhibit 12.1
HCP, Inc.
RATIOS OF EARNINGS TO FIXED CHARGES
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| Three Months |
| As Adjusted |
| Year ended December 31, |
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| 2015(1) |
| 2015(1) |
| 2014 |
| 2013 |
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| 2011 |
| 2010 |
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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: |
| $ | 116,780 |
| $ | 116,780 |
| $ | 439,742 |
| $ | 435,828 |
| $ | 419,066 |
| $ | 419,336 |
| $ | 288,657 |
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Rental Expense |
| 2,115 |
| 2,115 |
| 8,407 |
| 7,918 |
| 6,794 |
| 6,186 |
| 5,939 |
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Capitalized Interest |
| 1,698 |
| 1,698 |
| 10,314 |
| 13,494 |
| 23,360 |
| 26,402 |
| 21,664 |
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Fixed Charges |
| $ | 120,593 |
| $ | 120,593 |
| $ | 458,463 |
| $ | 457,240 |
| $ | 449,220 |
| $ | 451,924 |
| $ | 316,260 |
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Earnings: |
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Pretax Income from Continuing Operations before Noncontrolling Interest and Income from Equity Investees |
| $ | (251,181 | ) | $ | 227,283 |
| $ | 893,438 |
| 852,015 |
| $ | 745,081 |
| $ | 490,681 |
| $ | 371,172 |
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Add Back Fixed Charges |
| 120,593 |
| 120,593 |
| 458,463 |
| 457,240 |
| 449,220 |
| 451,924 |
| 316,260 |
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Add Distributed Income from Equity Investees |
| 1,159 |
| 1,159 |
| 5,045 |
| 3,989 |
| 3,384 |
| 3,273 |
| 5,373 |
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Less Capitalized Interest |
| (1,698 | ) | (1,698 | ) | (10,314 | ) | (13,494 | ) | (23,360 | ) | (26,402 | ) | (21,664 | ) | |||||||
Less Noncontrolling Interest from Subsidiaries without Fixed Charges |
| (1,745 | ) | (1,745 | ) | (8,780 | ) | (9,338 | ) | (10,954 | ) | (16,466 | ) | (15,517 | ) | |||||||
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Total |
| $ | (132,872 | ) | $ | 345,592 |
| $ | 1,337,852 |
| $ | 1,290,412 |
| $ | 1,163,371 |
| $ | 903,010 |
| 655,624 |
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Ratio of Earnings to Fixed Charges |
| — |
| 2.87 |
| 2.92 |
| 2.82 |
| 2.59 |
| 2.00 |
| 2.07 |
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(1) Earnings did not cover fixed charges during the three months ended March 31, 2015. The amount of fixed charges during the three months ended March 31, 2015 of $121 million was in excess of earnings by $254 million. Earnings of ($133) million for the three months ended March 31, 2015 included a non-cash impairment charge of $478 million. After adjusting for the non-cash impairment charge, adjusted earnings would have been $345 million and the adjusted ratio of earnings to fixed charges would have been 2.87 during the three months ended March 31, 2015. Without making the adjustment for the non-cash impairment charge, the ratio of earnings to fixed charges during the three months ended March 31, 2015 was (1.10). Adjusted earnings and adjusted ratio of earnings to fixed charges are non-GAAP supplemental financial measures and are not intended as a substitute for their most directly comparable GAAP measures, earnings and the ratio of earnings to fixed charges, respectively. We have provided these non-GAAP supplemental financial measures because we believe they are meaningful to investors as they adjust for a non-cash impairment charge, and accordingly, allow for comparison to prior periods and are indicative of normalized earnings.
