Equity Residential (EQR) 10-K 2011 FY Annual report

Exhibit 12

EQUITY RESIDENTIAL ERP OPERATING LIMITED PARTNERSHIP  Computation of Ratio of Earnings to Combined Fixed Charges ($ in thousands)
	Year Ended December 31,
	2011			2010			2009			2008			2007
Income (loss) from continuing operations	$	83,998		$	(83,426	)	$	(57,707	)	$	(105,505	)	$	(70,073	)
Interest expense incurred, net	469,237			468,306			493,278			476,457			475,283
Amortization of deferred financing costs	17,006			10,114			12,327			9,577			9,923
Earnings before combined fixed charges and preferred distributions	570,241			394,994			447,898			380,529			415,133
Preferred Share/Preference Unit distributions	(13,865		)	(14,368		)	(14,479		)	(14,507		)	(22,792		)
Premium on redemption of Preferred Shares/Preference Units	—			—			—			—			(6,154		)
Preference Interest and Junior Preference Unit distributions	—			—			(9		)	(15		)	(441		)
Earnings before combined fixed charges	$	556,376		$	380,626		$	433,410		$	366,007		$	385,746
Interest expense incurred, net	$	469,237		$	468,306		$	493,278		$	476,457		$	475,283
Amortization of deferred financing costs	17,006			10,114			12,327			9,577			9,923
Interest capitalized for real estate and unconsolidated entities under development	9,108			13,008			34,859			60,072			45,107
Amortization of deferred financing costs for real estate under development	—			2,768			3,585			1,986			1,521
Total combined fixed charges	495,351			494,196			544,049			548,092			531,834
Preferred Share/Preference Unit distributions	13,865			14,368			14,479			14,507			22,792
Premium on redemption of Preferred Shares/Preference Units	—			—			—			—			6,154
Preference Interest and Junior Preference Unit distributions	—			—			9			15			441
Total combined fixed charges and preferred distributions	$	509,216		$	508,564		$	558,537		$	562,614		$	561,221
Ratio of earnings before combined fixed charges to total combined fixed charges (1)	1.12			—			—			—			—
Ratio of earnings before combined fixed charges and preferred distributions to total      combined fixed charges and preferred distributions (1)	1.12			—			—			—			—

(1) For 2010, 2009, 2008 and 2007, the coverage deficiencies approximated $113.6 million, $110.6 million, $182.1 million and $146.1 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations. The ratios have been further reduced due to non-cash depreciation expense and impairment charges and premiums on the redemption of Preferred Shares/Preference Units. The Company was in compliance with its unsecured public debt covenants for all periods presented.