Camden Property Trust (CPT) 10-K 2014 FY Annual report

EXHIBIT 12.1

CAMDEN PROPERTY TRUST

STATEMENT REGARDING COMPUTATION OF RATIOS

FOR THE FIVE YEARS ENDED DECEMBER 31

(in thousands, except for ratio amounts)	2014(1)		2013(2)		2012(3)		2011(4)		2010(5)
EARNINGS BEFORE FIXED CHARGES:
Income from continuing operations before income taxes	$	303,217	$	157,442	$	162,634	$	19,729	$	3,754
Less: Equity in income (loss) of joint ventures	7,023		24,865		20,175		5,679		(839		)
	296,194		132,577		142,459		14,050		4,593
Add: Distributed income of joint ventures	7,399		8,884		6,321		5,329		6,524
Less: Interest capitalized	21,796		15,439		12,457		8,764		5,687
Less: Preferred distribution of subsidiaries	—		—		776		7,000		7,000
Total earnings (loss) before fixed charges	281,797		126,022		135,547		3,615		(1,570		)
FIXED CHARGES:
Interest expense	93,263		98,129		104,246		112,414		125,893
Interest capitalized	21,796		15,439		12,457		8,764		5,687
Accretion of discount	1,035		1,051		816		650		514
Loan amortization	3,355		3,548		3,608		5,877		4,102
Interest portion of rental expense	179		167		156		167		174
Preferred distribution of subsidiaries	—		—		776		7,000		7,000
Total fixed charges	119,628		118,334		122,059		134,872		143,370
Total earnings and fixed charges	$	401,425	$	244,356	$	257,606	$	138,487	$	141,800
RATIO OF EARNINGS TO FIXED CHARGES	3.36		2.06		2.11		1.03		0.99

(1) Earnings include a $159,289 impact related to a gain on sale of operating properties, including land, a $10,000 impact related to incentive compensation expense as a result of joint venture restructuring, and a $1,152 impact related to an impairment charge associated with land holdings. Excluding these impacts, the ratio would be 2.12.

(2) Earnings include a $1,000 impact related to non-recurring fee income and a $698 impact related to gain on sale of land. Excluding these impacts, the ratio would be 2.05.

(3) Earnings include a $57,418 impact related to a gain on acquisition of controlling interest in joint ventures. Excluding this impact, the ratio would be 1.64.

(4) Earnings include a $29,791 impact related to a loss on discontinuation of a hedging relationship, a $1,136 impact related to gain on sale of joint venture interests, a $3,316 impact related to a net gain on the sale of an available-for-sale investment, and a $4,748 impact related to gains on the sale of properties, including land. Excluding these impacts, the ratio would be 1.18.

(5) We would have needed to generate an additional $1,570 to achieve a ratio of 1.00 in 2010. Earnings include a $1,000 impact related to an impairment provision on a technology investment and a $236 impact related to a gain on the sale of land. These transactions did not have an impact on the ratio of 0.99.

(in thousands, except for ratio amounts)	2014			2013			2012			2011			2010
INTEREST COVERAGE RATIO
Total revenues	$	858,589		$	810,048		$	714,725		$	620,796		$	576,093
Total expenses	(720,532		)	(678,169		)	(629,684		)	(582,839		)	(570,736		)
Income from discontinued operations	—			8,515			17,406			17,831			19,355
Add: Depreciation and amortization	238,989			217,943			198,281			171,363			160,368
Add: Depreciation of discontinued operations	—			5,255			15,199			16,679			19,294
Add: Interest expense	93,263			98,129			104,246			112,414			125,893
Add: Interest expense of discontinued operations	—			—			36			—			—
Total	$	470,309		$	461,721		$	420,209		$	356,244		$	330,267
Total interest expense	$	93,263		$	98,129		$	104,282		$	112,414		$	125,893
INTEREST COVERAGE RATIO	5.0			4.7			4.0			3.2			2.6