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, | |||||||||||||||||||||||||||
| 2012 | 2013 | 2014 | 2015 | 2016 | 2016 | 2017 | ||||||||||||||||||||||
Pretax income (loss) from continuing operations | $ | 35,166 | $ | 24,571 | $ | 26,022 | $ | (64,024 | ) | $ | 62,980 | $ | 87,944 | $ | (23,454 | ) | ||||||||||||
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Fixed charges: | ||||||||||||||||||||||||||||
Interest expense including amortization of deferred costs and capitalized interest | $ | 236,716 | $ | 242,614 | $ | 255,744 | $ | 248,399 | $ | 220,648 | $ | 113,856 | $ | 101,611 | ||||||||||||||
Appropriate portion of rentals representative of the interest factor | 1,405 | 1,338 | 1,278 | 1,151 | 943 | 578 | 330 | |||||||||||||||||||||
Write-off of preferred share original issuance costs | 5,804 | 5,246 | 1,943 | — | — | — | — | |||||||||||||||||||||
Preferred Dividends | 28,645 | 27,721 | 24,054 | 22,375 | 22,375 | 11,188 | 11,993 | |||||||||||||||||||||
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Total fixed charges | $ | 272,570 | $ | 276,919 | $ | 283,019 | $ | 271,925 | $ | 243,966 | $ | 125,622 | $ | 113,934 | ||||||||||||||
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Capitalized interest during the period | $ | (13,327 | ) | $ | (8,789 | ) | $ | (8,678 | ) | $ | (6,672 | ) | $ | (3,059 | ) | $ | (1,947 | ) | $ | (876 | ) | |||||||
Write-off of preferred share original issuance costs | (5,804 | ) | (5,246 | ) | (1,943 | ) | — | — | — | — | ||||||||||||||||||
Preferred Dividends | (28,645 | ) | (27,721 | ) | (24,054 | ) | (22,375 | ) | (22,375 | ) | (11,188 | ) | (11,993 | ) | ||||||||||||||
Amortization of capitalized interest during the period | 8,722 | 9,015 | 9,304 | 9,526 | 9,628 | 4,795 | 4,829 | |||||||||||||||||||||
Equity Company Adjustments | (35,250 | ) | (6,819 | ) | (10,989 | ) | 3,135 | (15,699 | ) | (15,538 | ) | 2,382 | ||||||||||||||||
Equity Company Adjustments Distributed Income | 13,165 | 15,116 | 10,749 | 8,382 | 8,210 | 3,779 | 3,446 | |||||||||||||||||||||
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Earnings before income taxes and fixed charges | $ | 246,597 | $ | 277,046 | $ | 283,430 | $ | 199,897 | $ | 283,651 | $ | 193,467 | $ | 88,268 | ||||||||||||||
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Ratio of earnings to combined fixed charges and preferred dividends | (a | ) | 1.0 | 1.0 | (b | ) | 1.2 | 1.5 | (c | ) | ||||||||||||||||||
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| (a) | 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 aggregated $73.4 million. |
| (b) | Due to the pretax loss from continuing operations for the year ended December 31, 2015, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $72.0 million to achieve a coverage of 1:1. The pretax loss from |
continuing operations for the year ended December 31, 2015, includes consolidated impairment charges of $279.0 million and impairment charges of joint venture investments of $1.9 million, which together aggregated $280.9 million that are discussed in our Annual Report on Form10-K for the year ended December 31, 2016.
| (c) | Due to the pretax loss from continuing operations for the six months ended June 30, 2017, the ratio coverage was less than 1:1. We would have needed to generate additional earnings of $25.7 million to achieve a coverage of 1:1. The pretax loss from continuing operations for the six months ended June 30, 2017, includes consolidated impairment charges of $50.1 million and a reserve of preferred equity interests of $76.0 million, which together aggregated $126.1 million that are discussed in our Quarterly Report on Form10-Q for the six months ended June 30, 2017. |
