Equity Residential (EQR) 10-K 2009 FY Annual report

Exhibit 12

EQUITY RESIDENTIAL

Computation of Ratio of Earnings to Combined Fixed Charges

($ in thousands)

	Year Ended December 31,
	2009			2008			2007			2006			2005
Income (loss) from continuing operations	$	28,031		$	(12,823)		$	21,053		$	(5,937)		$	70,458
Interest expense incurred, net		503,828			489,513			489,310			417,357			343,369
Amortization of deferred financing costs		12,794			9,684			10,077			8,042			6,302
Earnings before combined fixed charges and preferred distributions		544,653			486,374			520,440			419,462			420,129
Preferred Share distributions		(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		(9	)		(15	)		(441	)		(2,002	)		(7,606	)
Premium on redemption of Preference Interests		—			—			—			(684	)		(4,134	)
Earnings before combined fixed charges	$	530,165		$	471,852		$	491,053		$	375,698		$	354,388
Interest expense incurred, net	$	503,828		$	489,513		$	489,310		$	417,357		$	343,369
Amortization of deferred financing costs		12,794			9,684			10,077			8,042			6,302
Interest capitalized for real estate and unconsolidated entities under development		34,859			60,072			45,107			20,734			13,701
Amortization of deferred financing costs for real estate under development		3,585			1,986			1,521			46			—
Total combined fixed charges		555,066			561,255			546,015			446,179			363,372
Preferred Share distributions		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		9			15			441			2,002			7,606
Premium on redemption of Preference Interests		—			—			—			684			4,134
Total combined fixed charges and preferred distributions	$	569,554		$	575,777		$	575,402		$	489,943		$	429,113
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 2009, 2008, 2007, 2006 and 2005, the coverage deficiencies on both ratios approximated $24.9 million, $89.4 million, $55.0 million, $70.5 million and $9.0 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations for all periods presented. For all periods presented, 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.