Exhibit 12.1
DDR Corp.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Amounts in Thousands)
Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||||||||||||||
2009 | 2010 | 2011 | 2012 | 2013 | 2013 | 2014 | ||||||||||||||||||||||
Pretax (loss) income from continuing operations | $ | (213,964 | ) | $ | (117,175 | ) | $ | 2,485 | $ | 28,572 | $ | 5,067 | $ | 13,506 | $ | 57,420 | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense including amortization of deferred costs and capitalized interest | $ | 266,843 | $ | 248,586 | $ | 249,907 | $ | 236,716 | $ | 242,614 | $ | 176,367 | $ | 191,919 | ||||||||||||||
Appropriate portion of rentals representative of the interest factor | 1,589 | 1,610 | 1,407 | 1,405 | 1,338 | 990 | 971 | |||||||||||||||||||||
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Total fixed charges | $ | 268,432 | $ | 250,196 | $ | 251,314 | $ | 238,121 | $ | 243,952 | $ | 177,357 | $ | 192,890 | ||||||||||||||
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Capitalized interest during the period | (21,814 | ) | (12,232 | ) | (12,693 | ) | (13,327 | ) | (8,789 | ) | (6,768 | ) | (6,638 | ) | ||||||||||||||
Amortization of capitalized interest during the period | 7,447 | 7,855 | 8,278 | 8,722 | 9,015 | 6,711 | 6,927 | |||||||||||||||||||||
Equity Company Adjustments | 9,733 | (5,600 | ) | (13,734 | ) | (35,250 | ) | (6,819 | ) | (5,543 | ) | (10,241 | ) | |||||||||||||||
Equity Company Adjustments Distributed Income | 10,889 | 7,334 | 9,424 | 13,165 | 15,116 | 10,533 | 6,358 | |||||||||||||||||||||
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Earnings before income taxes and fixed charges | $ | 60,723 | $ | 130,378 | $ | 245,074 | $ | 240,003 | $ | 257,542 | $ | 195,796 | $ | 246,716 | ||||||||||||||
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Ratio of earnings to fixed charges | (a) | (b) | (c) | 1.0 | 1.1 | 1.1 | 1.3 | |||||||||||||||||||||
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(a) | 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 $207.7 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the year ended December 31, 2009 includes consolidated impairment charges of $4.9 million, impairment charges of joint venture investments of $184.6 million and losses on equity derivative instruments of $199.8 million, which together aggregate $389.3 million. |
(b) | 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 $119.8 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the year ended December 31, 2010 includes consolidated impairment charges of $84.9 million and losses on equity derivative instruments of $40.2 million, which together aggregate $125.1 million. |
(c) | For the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $6.2 million to achieve a coverage of 1:1. |
The pretax income from continuing operations for the year ended December 31, 2011 includes consolidated impairment charges of $63.2 million and impairment charges of joint venture investments of $2.9 million, which together aggregate $66.1 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2013, as amended. |