Camden Property Trust (CPT) 10-K 2017 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)	2017(1)		2016(2)		2015(3)		2014(4)		2013(5)
EARNINGS BEFORE FIXED CHARGES:
Income from continuing operations before income taxes	$	202,084	$	457,001	$	240,384	$	285,020	$	140,195
Less: Equity in income of joint ventures	6,822		7,125		6,168		7,023		24,865
	195,262		449,876		234,216		277,997		115,330
Add: Distributed income of joint ventures	6,851		7,057		6,387		7,399		8,884
Less: Interest capitalized	15,174		18,184		19,271		22,185		15,698
Total earnings before fixed charges	186,939		438,749		221,332		263,211		108,516
FIXED CHARGES:
Interest expense	86,750		93,145		97,312		94,906		99,784
Interest capitalized	15,174		18,184		19,271		22,185		15,698
Accretion of discount	1,005		1,032		1,080		1,035		1,051
Interest portion of rental expense	242		244		202		179		167
Total fixed charges	103,171		112,605		117,865		118,305		116,700
Total earnings and fixed charges	$	290,110	$	551,354	$	339,197	$	381,516	$	225,216
RATIO OF EARNINGS TO FIXED CHARGES	2.81		4.90		2.88		3.22		1.93

(1) Earnings include a $43,231 impact related to a gain on sale of one operating property, $4,987 in expenses due to Hurricanes Harvey and Irma, and a $323 impact related to a loss on early retirement of debt. Excluding this impact, the ratio would be $2.44.

(2) Earnings include a $295,397 impact related to a gain on sale of operating properties, including land. Excluding this impact, the ratio would be 2.27.

(3) Earnings include a $104,288 impact related to a gain on sale of operating properties, including land. Excluding this impact, the ratio would be 1.99.

(4) 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 1.97.

(5) 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 1.92.

(in thousands, except for ratio amounts)	2017			2016			2015			2014			2013
INTEREST COVERAGE RATIO
Total revenues	$	928,691		$	891,024		$	842,950		$	804,874		$	758,230
Total expenses	(776,337		)	(736,545		)	(713,022		)	(685,014		)	(643,598		)
Income from discontinued operations	—			7,605			19,750			18,197			25,762
Add: Depreciation and amortization	263,974			250,146			240,944			222,055			201,428
Add: Depreciation of discontinued operations	—			4,327			16,138			15,291			20,115
Add: Interest expense	86,750			93,145			97,312			94,906			99,784
Total	$	503,078		$	509,702		$	504,072		$	470,309		$	461,721
Total interest expense	$	86,750		$	93,145		$	97,312		$	94,906		$	99,784
INTEREST COVERAGE RATIO	5.8			5.5			5.2			5.0			4.6