Exhibit 12.2
DDR Corp.
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Amounts in Thousands)
Year Ended December 31, | Six Months Ended June 30, | |||||||||||||||||||||||||||
2010 | 2011 | 2012 | 2013 | 2014 | 2014 | 2015 | ||||||||||||||||||||||
Pretax (loss) income from continuing operations | $ | (122,886 | ) | $ | (1,469 | ) | $ | 35,166 | $ | 24,571 | $ | 26,022 | $ | 49,487 | $ | (218,394 | ) | |||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense including amortization of deferred costs and capitalized interest | $ | 248,586 | $ | 249,907 | $ | 236,716 | $ | 242,614 | $ | 255,744 | $ | 129,824 | $ | 127,506 | ||||||||||||||
Appropriate portion of rentals representative of the interest factor | 1,610 | 1,407 | 1,405 | 1,338 | 1,278 | 667 | 583 | |||||||||||||||||||||
Write-off of preferred share original issuance costs | — | 6,402 | 5,804 | 5,246 | 1,943 | 1,943 | — | |||||||||||||||||||||
Preferred Dividends | 42,269 | 31,587 | 28,645 | 27,721 | 24,054 | 12,867 | 11,188 | |||||||||||||||||||||
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Total fixed charges | $ | 292,465 | $ | 289,303 | $ | 272,570 | $ | 276,919 | $ | 283,019 | $ | 145,301 | $ | 139,277 | ||||||||||||||
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Capitalized interest during the period | $ | (12,232 | ) | $ | (12,693 | ) | $ | (13,327 | ) | $ | (8,789 | ) | $ | (8,678 | ) | $ | (3,987 | ) | $ | (3,199 | ) | |||||||
Write-off of preferred share original issuance costs | — | (6,402 | ) | (5,804 | ) | (5,246 | ) | (1,943 | ) | (1,943 | ) | — | ||||||||||||||||
Preferred Dividends | (42,269 | ) | (31,587 | ) | (28,645 | ) | (27,721 | ) | (24,054 | ) | (12,867 | ) | (11,188 | ) | ||||||||||||||
Amortization of capitalized interest during the period | 7,855 | 8,278 | 8,722 | 9,015 | 9,304 | 4,574 | 4,705 | |||||||||||||||||||||
Equity Company Adjustments | (5,600 | ) | (13,734 | ) | (35,250 | ) | (6,819 | ) | (10,989 | ) | (6,621 | ) | (1,703 | ) | ||||||||||||||
Equity Company Adjustments Distributed Income | 7,334 | 9,424 | 13,165 | 15,116 | 10,749 | 3,314 | 4,021 | |||||||||||||||||||||
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Earnings before income taxes and fixed charges | $ | 124,667 | $ | 241,120 | $ | 246,597 | $ | 277,046 | $ | 283,430 | $ | 177,258 | $ | (86,481 | ) | |||||||||||||
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Ratio of earnings to combined fixed charges and preferred dividends | (a) | (b) | (c) | 1.0 | 1.0 | 1.2 | (d) | |||||||||||||||||||||
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(a) | 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 $167.8 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.
(b) | Due to the pretax loss from continuing operations for the year ended December 31, 2011, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $48.2 million to achieve a coverage of 1:1. |
The pretax loss 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.
(c) | For the year ended December 31, 2012, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $26.0 million to achieve a coverage of 1:1. |
The pretax income from continuing operations for the year ended December 31, 2012, includes consolidated impairment charges of $46.7 million and impairment charges of joint venture investments of $26.7 million, which together aggregate $73.4 million, that are discussed in our Annual Report on Form 10-K for the year ended December 31, 2014, as amended.
(d) | Due to the pretax loss from continuing operations for the six months ended June 30, 2015, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $225.8 million to achieve a coverage of 1:1. |
The pretax loss from continuing operations for the six months ended June 30, 2015, includes consolidated impairment charges of $279.0 million, that are discussed in our Quarterly Report on Form 10-Q for the six months ended June 30, 2015.