Exhibit 12.1
DEVELOPERS DIVERSIFIED REALTY CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands)
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands)
| Year Ended December 31, | ||||||||||||||||||||
| 2006 (a) | 2007(a) | 2008 (a) | 2009 | 2010 | ||||||||||||||||
| Pretax income (loss) from continuing operations | $ | 219,139 | $ | 225,510 | $ | (63,731 | ) | $ | (219,710 | ) | $ | (144,862 | ) | |||||||
| Fixed charges: | ||||||||||||||||||||
| Interest expense including amortization of deferred costs and capitalized interest | $ | 244,221 | $ | 307,633 | $ | 300,679 | $ | 266,843 | $ | 248,586 | ||||||||||
| Appropriate portion of rentals representative of the interest factor | $ | 1,319 | $ | 1,329 | $ | 1,175 | $ | 1,589 | $ | 1,610 | ||||||||||
| Preferred Dividends on consolidated subsidiaries | $ | — | $ | 9,690 | $ | — | $ | — | $ | — | ||||||||||
| Total fixed charges | $ | 245,540 | $ | 318,652 | $ | 301,854 | $ | 268,432 | $ | 250,196 | ||||||||||
| Capitalized interest during the period | $ | (20,049 | ) | $ | (28,003 | ) | $ | (41,062 | ) | $ | (21,814 | ) | $ | (12,232 | ) | |||||
| Preferred Dividends on consolidated subsidiaries | $ | — | $ | (9,690 | ) | $ | — | $ | — | $ | — | |||||||||
| Amortization of capitalized interest during the period | $ | 4,418 | $ | 5,351 | $ | 6,720 | $ | 7,447 | $ | 7,855 | ||||||||||
| Equity Company Adjustments | $ | (30,337 | ) | $ | (43,229 | ) | $ | (17,719 | ) | $ | 9,733 | $ | (5,600 | ) | ||||||
| Equity Company Adjustments Distributed Income | $ | 30,337 | $ | 43,229 | $ | 17,719 | $ | 8,416 | $ | 7,301 | ||||||||||
| Earnings (loss) before income taxes and fixed charges | $ | 449,048 | $ | 511,820 | $ | 203,781 | $ | 52,504 | $ | 102,658 | ||||||||||
| Ratio of earnings to fixed charges | 1.83 | 1.61 | (b | ) | (c | ) | (d | ) | ||||||||||||
| (a) | These periods have been restated to reflect the retrospective application of ASC 470-02, previously referred to as FSP APB 14-1, for interest expense related to our convertible debt. | |
| (b) | Due to the pretax loss from continuing operations for the year ended December 31, 2008, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $98.1 million to achieve a coverage of 1:1 for the year ended December 31, 2008. | |
| The pretax loss from continuing operations for the year ended December 31, 2008, includes consolidated impairment charges of $29.6 million and impairment charges of joint venture investments of $107.0 million, which together aggregate $136.6 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2010. | ||
| (c) | Due to the pretax loss from continuing operations for the year ended December 31, 2009, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $215.9 million to achieve a coverage of 1:1 for the year ended December 31, 2009. | |
| The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $12.7 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $397.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2010. | ||
| (d) | Due to the pretax loss from continuing operations for the year ended December 31, 2010, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $147.5 million to achieve a coverage of 1:1 for the year ended December 31, 2010. | |
| The pretax loss from continuing operations for the year ended December 31, 2010 includes consolidated impairment charges of $116.5 million and losses on equity derivative instruments of $40.2 million, which together aggregate $156.7 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2010. |