Exhibit 12
EQUITY RESIDENTIAL
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
Six Months Ended June 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2010 | 2009 | 2009 | 2008 | 2007 | 2006 | 2005 | ||||||||||||||||||||||
Income (loss) from continuing operations | $ | 7,075 | $ | 24,287 | $ | 20,192 | $ | (21,325 | ) | $ | 13,147 | $ | (13,283 | ) | $ | 63,933 | ||||||||||||
Interest expense incurred, net | 231,116 | 239,172 | 503,542 | 489,349 | 489,054 | 417,097 | 343,104 | |||||||||||||||||||||
Amortization of deferred financing costs | 5,516 | 6,214 | 12,794 | 9,681 | 10,073 | 8,037 | 6,298 | |||||||||||||||||||||
Earnings before combined fixed charges and preferred distributions | 243,707 | 269,673 | 536,528 | 477,705 | 512,274 | 411,851 | 413,335 | |||||||||||||||||||||
Preferred Share distributions | (7,238 | ) | (7,240 | ) | (14,479 | ) | (14,507 | ) | (22,792 | ) | (37,113 | ) | (49,642 | ) | ||||||||||||||
Premium on redemption of Preferred Shares | — | — | — | — | (6,154 | ) | (3,965 | ) | (4,359 | ) | ||||||||||||||||||
Preference Interest and Junior Preference Unit distributions | — | (7 | ) | (9 | ) | (15 | ) | (441 | ) | (2,002 | ) | (7,606 | ) | |||||||||||||||
Premium on redemption of Preference Interests | — | — | — | — | — | (684 | ) | (4,134 | ) | |||||||||||||||||||
Earnings before combined fixed charges | $ | 236,469 | $ | 262,426 | $ | 522,040 | $ | 463,183 | $ | 482,887 | $ | 368,087 | $ | 347,594 | ||||||||||||||
Interest expense incurred, net | $ | 231,116 | $ | 239,172 | $ | 503,542 | $ | 489,349 | $ | 489,054 | $ | 417,097 | $ | 343,104 | ||||||||||||||
Amortization of deferred financing costs | 5,516 | 6,214 | 12,794 | 9,681 | 10,073 | 8,037 | 6,298 | |||||||||||||||||||||
Interest capitalized for real estate and unconsolidated entities under development | 7,940 | 21,018 | 34,859 | 60,072 | 45,107 | 20,734 | 13,701 | |||||||||||||||||||||
Amortization of deferred financing costs for real estate under development | 1,211 | 2,133 | 3,585 | 1,986 | 1,521 | 46 | — | |||||||||||||||||||||
Total combined fixed charges | 245,783 | 268,537 | 554,780 | 561,088 | 545,755 | 445,914 | 363,103 | |||||||||||||||||||||
Preferred Share distributions | 7,238 | 7,240 | 14,479 | 14,507 | 22,792 | 37,113 | 49,642 | |||||||||||||||||||||
Premium on redemption of Preferred Shares | — | — | — | — | 6,154 | 3,965 | 4,359 | |||||||||||||||||||||
Preference Interest and Junior Preference Unit distributions | — | 7 | 9 | 15 | 441 | 2,002 | 7,606 | |||||||||||||||||||||
Premium on redemption of Preference Interests | — | — | — | — | — | 684 | 4,134 | |||||||||||||||||||||
Total combined fixed charges and preferred distributions | $ | 253,021 | $ | 275,784 | $ | 569,268 | $ | 575,610 | $ | 575,142 | $ | 489,678 | $ | 428,844 | ||||||||||||||
Ratio of earnings before combined fixed charges to total combined fixed charges (1) | — | — | — | — | — | — | — | |||||||||||||||||||||
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1) | — | — | — | — | — | — | — | |||||||||||||||||||||
(1) | For the six months ended June 30, 2010 and June 30, 2009 and the years ended December 31, 2009, 2008, 2007, 2006 and 2005, the coverage deficiencies on both ratios approximated $9.3 million, $6.1 million, $32.7 million, $97.9 million, $62.9 million, $77.8 million and $15.5 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 and/or Preference Interests. The Company was in compliance with its unsecured public debt covenants for all periods presented. |
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