Exhibit 99.1
POST APARTMENT HOMES, L.P.
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Three Months Ended | ||||||||||||||||||||||||
March 31, | Year Ended December 31, | |||||||||||||||||||||||
2005 | 2004 | 2003 | 2002 | 2001 | 2000 | |||||||||||||||||||
Earnings: | ||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 1,188 | $ | (20,323 | ) | $ | (20,292 | ) | $ | 36,409 | $ | 77,113 | $ | 88,561 | ||||||||||
Minority interest in consolidated property partnerships | (113 | ) | (671 | ) | (1,605 | ) | (1,771 | ) | (1,715 | ) | (1,405 | ) | ||||||||||||
Equity in (income) loss of unconsolidated entities | (147 | ) | (1,083 | ) | (7,790 | ) | 1,591 | 186 | — | |||||||||||||||
Income (loss) from continuing operations before minority interest and equity in income (loss) of unconsolidated entities | 928 | (22,077 | ) | (29,687 | ) | 36,229 | 75,584 | 87,156 | ||||||||||||||||
Add: | ||||||||||||||||||||||||
Distribution of income from investments in unconsolidated entities | 583 | 1,929 | 11,294 | — | — | — | ||||||||||||||||||
Fixed Charges | 17,886 | 82,021 | 71,089 | 66,423 | 67,072 | 63,560 | ||||||||||||||||||
Deduct: | ||||||||||||||||||||||||
Capitalized interest | (367 | ) | (1,078 | ) | (3,555 | ) | (13,223 | ) | (22,124 | ) | (25,426 | ) | ||||||||||||
Minority interest in income of consolidated property partnerships not incurring fixed charges | — | — | (73 | ) | — | — | — | |||||||||||||||||
Total Earnings (A) | $ | 19,030 | $ | 60,795 | $ | 49,068 | $ | 89,429 | $ | 120,532 | $ | 125,290 | ||||||||||||
Fixed Charges: | ||||||||||||||||||||||||
Interest expense | $ | 15,679 | $ | 65,415 | $ | 63,182 | $ | 50,231 | $ | 41,604 | $ | 34,861 | ||||||||||||
Termination of debt remarketing agreement (interest expense) (1) | — | 10,615 | — | — | — | — | ||||||||||||||||||
Amortization of deferred financing costs | 1,688 | 4,304 | 3,801 | 2,327 | 1,978 | 1,636 | ||||||||||||||||||
Capitalized interest | 367 | 1,078 | 3,555 | 13,223 | 22,124 | 25,426 | ||||||||||||||||||
Rentals (2) | 152 | 609 | 551 | 642 | 1,366 | 1,637 | ||||||||||||||||||
Total Fixed Charges (B) | $ | 17,886 | $ | 82,021 | $ | 71,089 | $ | 66,423 | $ | 67,072 | $ | 63,560 | ||||||||||||
Ratio of Earnings to Fixed Charges (A / B) | 1.1 | x | 0.7 | x(3) | 0.7 | x(3) | 1.3 | x | 1.8 | x | 2.0 | x | ||||||||||||
(1) | In December 2004, Post Apartment Homes, L.P. terminated a remarketing agreement related to its $100,000, 6.85% Mandatory Par Put Remarketed Securities due in March 2015. In connection with the termination of the remarketing agreement, the Post Apartment Homes, L.P. paid $10,615 (interest expense), including transaction expenses. Under the provisions of the remarketing agreement, the remarketing agent had the right to remarket the $100,000, unsecured notes in March 2005 for a ten-year term at an interest rate calculated as 5.715% plus Post Apartment Homes, L.P.’s then current credit spread to the ten-year treasury rate. Post Apartment Homes, L.P. re-paid these unsecured notes in March 2005. | |||
(2) | For the three months ended March 31, 2005 and the years ended December 31, 2004 and 2003, the interest factor of rental expense is calculated as one-third of rental expense. For the 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. | |||
(3) | Post Apartment Homes, L.P. would need additional earnings of $21,226 for the year ended December 31, 2004 and $22,021 for the year ended December 31, 2003 for the Ratio of Earnings to Fixed Charges to equal 1.0. |