Exhibit 99.3
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS
The following table sets forth the ratio of earnings to fixed charges and preferred stock dividend requirements for the periods indicated:
Year Ended
July 31,
1998 | | 5 Months Ended
December 31, | | Years Ended December 31, | |
| 1998 | | 1999 | | 2000 | | 2001 | | 2002 | |
| | | | | | | | | | | |
2.1 | | 1.9 | | 1.8 | | 1.5 | | 1.4 | | (a) | |
For purposes of computing these ratios, earnings have been calculated by adding fixed charges (excluding preferred stock dividends and capitalized interest) to pretax income from continuing operations before adjustment for minority interest in income of consolidated partnership or equity in income of unconsolidated ventures plus distributions from equity investee. Fixed charges consist of interest costs, whether expensed or capitalized, preferred stock dividend requirements, the interest component of rental expense, if any, and amortization of debt discounts and issue costs, whether expensed or capitalized.
CALCULATION OF COMBINED RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(DOLLAR AMOUNTS IN THOUSANDS)
| |
Years Ended December 31,
| | 5 Months
Ended
December 31,
1998 | | Year
Ended
July 31,
1998 | |
| | 2002 | | 2001 | | 2000 | | 1999 | | | |
EARNINGS: | | | | | | | | | | | | | |
Pretax income from continuing operations before adjustment for minority interests in income of consolidated partnership or equity in income of unconsolidated ventures | | $ | 12,763 | | $ | 65,985 | | $ | 78,805 | | $ | 106,227 | | $ | 39,098 | | $ | 54,972 | |
Interest expense (including amortization of debt discount and issuing costs) | | 93,002 | | 83,678 | | 92,915 | | 81,412 | | 27,168 | | 36,815 | |
Distributions from equity investee | | 3,761 | | 325 | | — | | — | | — | | — | |
Interest component of rental expense | | 428 | | 426 | | 330 | | 341 | | 145 | | 348 | |
Total | | $ | 109,954 | | $ | 150,414 | | $ | 172,050 | | $ | 187,980 | | $ | 66,411 | | $ | 92,135 | |
| | | | | | | | | | | | | |
FIXED CHARGES: | | | | | | | | | | | | | |
Interest expense (including amortization of debt discount and issuing costs) | | $ | 93,002 | | $ | 83,678 | | $ | 92,915 | | $ | 81,412 | | $ | 27,168 | | $ | 36,815 | |
Capitalized interest | | 3,733 | | 2,635 | | 436 | | 126 | | 5 | | 12 | |
Interest component of rental expense | | 428 | | 426 | | 330 | | 341 | | 145 | | 348 | |
Total | | $ | 97,163 | | $ | 86,739 | | $ | 93,681 | | $ | 81,879 | | $ | 27,318 | | $ | 37,175 | |
| | | | | | | | | | | | | |
PREFERRED DIVIDEND REQUIREMENTS | | $ | 21,023 | | $ | 22,639 | | $ | 22,635 | | $ | 22,777 | | $ | 6,914 | | $ | 5,850 | |
| | | | | | | | | | | | | |
TOTAL FIXED CHARGES AND PREFERRED DIVIDEND REQUIREMENTS | | $ | 118,186 | | $ | 109,378 | | $ | 116,316 | | $ | 104,656 | | $ | 34,232 | | $ | 43,025 | |
| | | | | | | | | | | | | |
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDEND REQUIREMENTS | | (a) | | 1.4 | | 1.5 | | 1.8 | | 1.9 | | 2.1 | |
(a) Due to impairment of real estate charges of $88.6 million in 2002, the coverage ration was less than 1:1. The Company would require additional earnings of approximately $3.5 million to achieve coverage of 1:1.
