Exhibit 12.1
HCP, Inc.
RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
| | Nine Months
Ended
September 30, | | As Adjusted Nine Months
Ended
September 30, | | Year Ended December 31, | |
| | 2015(1) | | 2015(1) | | 2014 | | 2013 | | 2012 | | 2011 | | 2010 | |
| | | | | | | | | | | |
Fixed Charges: | | | | | | | | | | | | | | | |
Interest Expense and Debt Amortization | | $ | 357,569 | | $ | 357,569 | | $ | 439,742 | | $ | 435,828 | | $ | 419,066 | | $ | 419,336 | | $ | 288,657 | |
Rental Expense | | 6,953 | | 6,953 | | 8,407 | | 7,918 | | 6,794 | | 6,186 | | 5,939 | |
Capitalized Interest | | 5,995 | | 5,995 | | 10,314 | | 13,494 | | 23,360 | | 26,402 | | 21,664 | |
| | | | | | | | | | | | | | | |
Fixed Charges | | $ | 370,517 | | $ | 370,517 | | $ | 458,463 | | $ | 457,240 | | $ | 449,220 | | $ | 451,924 | | $ | 316,260 | |
| | | | | | | | | | | | | | | |
Earnings: | | | | | | | | | | | | | | | |
Pretax Income from Continuing Operations before Noncontrolling Interest and Income from Equity Investees | | $ | 34,897 | | $ | 627,818 | | $ | 893,438 | | $ | 852,015 | | $ | 745,081 | | $ | 490,681 | | $ | 371,172 | |
Add Back Fixed Charges | | 370,517 | | 370,517 | | 458,463 | | 457,240 | | 449,220 | | 451,924 | | 316,260 | |
Add Distributed Income from Equity Investees | | 4,587 | | 4,587 | | 5,045 | | 3,989 | | 3,384 | | 3,273 | | 5,373 | |
Less Capitalized Interest | | (5,995 | ) | (5,995 | ) | (10,314 | ) | (13,494 | ) | (23,360 | ) | (26,402 | ) | (21,664 | ) |
Less Noncontrolling Interest from Subsidiaries without Fixed Charges | | (4,519 | ) | (4,519 | ) | (8,780 | ) | (9,338 | ) | (10,954 | ) | (16,466 | ) | (15,517 | ) |
| | | | | | | | | | | | | | | |
Total | | $ | 399,487 | | $ | 992,408 | | $ | 1,337,852 | | $ | 1,290,412 | | $ | 1,163,371 | | $ | 903,010 | | $ | 655,624 | |
| | | | | | | | | | | | | | | |
Ratio of Earnings to Fixed Charges | | 1.08 | | 2.68 | | 2.92 | | 2.82 | | 2.59 | | 2.00 | | 2.07 | |
(1) Earnings of $399 million for the nine months ended September 30, 2015 included non-cash impairment charges of $593 million. After adjusting for the non-cash impairment charges, adjusted earnings would have been $992 million and the adjusted ratio of earnings to fixed charges would have been 2.68 for the nine months ended September 30, 2015. Adjusted earnings and the 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 non-cash impairment charges, and accordingly, allow for comparison to prior periods and are indicative of normalized earnings.
