Exhibit 12.1
CBL & Associates Properties, Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(in thousands, except ratios)
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| Nine Months Ended September 30, |
| Year Ended December 31, |
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| 2007 |
| 2006 |
| 2006 |
| 2005 |
| 2004 |
| 2003 |
| 2002 |
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Earnings: |
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Income before discontinued operations, equity in earnings and minority interest in earnings |
| $ | 108,994 |
| $ | 114,475 |
| $ | 179,640 |
| $ | 267,160 |
| $ | 196,074 |
| $ | 239,980 |
| $ | 140,666 |
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Fixed charges less capitalized interest and preferred dividends |
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| 209,135 |
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| 192,703 |
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| 257,067 |
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| 210,914 |
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| 177,219 |
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| 154,116 |
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| 143,125 |
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Distributed income of equity investees |
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| 6,924 |
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| 6,517 |
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| 12,372 |
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| 7,492 |
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| 8,801 |
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| 4,150 |
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| 5,599 |
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Equity in losses of equity investees for which charges arise from guarantees |
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| (502 | ) |
| (403 | ) |
| (461 | ) |
| (1,020 | ) |
| — |
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| (39 | ) |
| (12 | ) |
Minority interest in earnings of subsidiaries that have not incurred fixed charges |
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| (4,412 | ) |
| (2,778 | ) |
| (4,205 | ) |
| (3,700 | ) |
| (3,554 | ) |
| (2,254 | ) |
| (1,782 | ) |
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Total earnings |
| $ | 320,139 |
| $ | 310,514 |
| $ | 444,413 |
| $ | 480,846 |
| $ | 378,540 |
| $ | 395,953 |
| $ | 287,596 |
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Combined fixed charges (1): |
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Interest expense (2) |
| $ | 209,135 |
| $ | 192,703 |
| $ | 257,067 |
| $ | 210,914 |
| $ | 177,219 |
| $ | 154,116 |
| $ | 143,125 |
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Capitalized interest |
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| 13,817 |
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| 11,926 |
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| 15,992 |
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| 10,184 |
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| 4,719 |
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| 6,231 |
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| 5,734 |
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Preferred dividends |
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| 24,320 |
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| 22,926 |
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| 30,568 |
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| 30,568 |
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| 18,309 |
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| 19,633 |
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| 10,919 |
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Total combined fixed charges |
| $ | 247,272 |
| $ | 227,555 |
| $ | 303,627 |
| $ | 251,666 |
| $ | 200,247 |
| $ | 179,980 |
| $ | 159,778 |
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Ratio of earnings to combined fixed charges |
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| 1.29 |
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| 1.36 |
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| 1.46 |
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| 1.91 |
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| 1.89 |
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| 2.20 |
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| 1.80 |
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| (1) The interest portion of rental expense is not calculated because the rental expense of the company is not significant. |
| (2) Interest expense includes amortization of capitalized debt expenses and amortization of premiums and discounts. |
1