Exhibit 99.2
POST APARTMENT HOMES, L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
Six Months | Year Ended December 31, | ||||||||||||||||||||||||
Ended June 30, | |||||||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | 1999 | ||||||||||||||||||||
Earnings: | |||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (1,594 | ) | $ | (17,925 | ) | $ | 39,281 | $ | 80,190 | $ | 92,442 | $ | 94,134 | |||||||||||
Add: | |||||||||||||||||||||||||
Minority interest in consolidated property partnerships | (575 | ) | (2,024 | ) | (2,055 | ) | (2,098 | ) | (1,695 | ) | 511 | ||||||||||||||
Equity in income (loss) of unconsolidated entities | (422 | ) | (7,791 | ) | 1,590 | 186 | — | — | |||||||||||||||||
Distribution of income from investments in unconsolidiated entities | 591 | 11,294 | — | — | — | — | |||||||||||||||||||
Fixed Charges | 36,024 | 72,812 | 68,227 | 69,121 | 65,582 | 46,955 | |||||||||||||||||||
Deduct: | |||||||||||||||||||||||||
Capitalized interest | (500 | ) | (3,555 | ) | (13,223 | ) | (22,124 | ) | (25,426 | ) | (21,417 | ) | |||||||||||||
Minority interest in consolidated property partnerships not incurring fixed charges | 643 | 2,024 | 1,525 | 1,552 | 1,122 | (334 | ) | ||||||||||||||||||
Total Earnings (A) | 34,167 | 54,835 | 95,345 | 126,827 | 132,025 | 119,849 | |||||||||||||||||||
Fixed Charges: | |||||||||||||||||||||||||
Interest expense | 33,007 | 64,905 | 52,035 | 43,653 | 36,883 | 22,660 | |||||||||||||||||||
Amortization of deferred financing costs | 2,208 | 3,801 | 2,327 | 1,978 | 1,636 | 1,496 | |||||||||||||||||||
Capitalized interest | 500 | 3,555 | 13,223 | 22,124 | 25,426 | 21,417 | |||||||||||||||||||
Rentals %(1) | 309 | 551 | 642 | 1,366 | 1,637 | 1,382 | |||||||||||||||||||
Total Fixed Charges (B) | 36,024 | 72,812 | 68,227 | 69,121 | 65,582 | 46,955 | |||||||||||||||||||
Ratio of Earnings to Fixed Charges (A/B) | 0.9 | x(2) | 0.8 | x(2) | 1.4 | x | 1.8 | x | 2.0 | x | 2.6 | x | |||||||||||||
(1) | For the six months ended June 30, 2004 and year ended December 31, 2003, the interest factor of rental expense is calculated as one-third of rental expense. For years ended December 31, 2002 and prior, the interest factor of rental expense is calculated as one-third of rental expense for all leases except for two leases for which the interest factor is calculated as 100% of rental expense. Post Apartment Homes, L.P. believes these represent appropriate interest factors. | |||
(2) | For the six months ended June 30, 2004 and year ended December 31, 2003, earnings of Post Apartment Homes, L.P. were inadequate to cover fixed charges, by $1,857 for the six months ended June 30, 2004 and $17,977 for the year ended December 31, 2003. |