Exhibit 12.2
CBL & Associates Limited Partnership
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
(in thousands, except ratios)
Nine Months Ended September 30, | Year Ended December 31, | |||||||||||||||||||||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Earnings: | ||||||||||||||||||||||||||||
Income before discontinued operations, equity in earnings and noncontrolling interests | $ | 5,468 | $ | 135,760 | $ | 103,756 | $ | 242,675 | $ | 105,006 | $ | 179,140 | $ | 148,817 | ||||||||||||||
Fixed charges less capitalized interest and preferred dividends | 162,788 | 174,362 | 229,458 | 239,844 | 231,934 | 242,357 | 262,978 | |||||||||||||||||||||
Distributed income of equity investees | 12,366 | 15,697 | 21,092 | 21,866 | 15,995 | 17,074 | 9,586 | |||||||||||||||||||||
Equity in losses of equity investees for which charges arise from guarantees | — | — | (197 | ) | (63 | ) | (44 | ) | — | — | ||||||||||||||||||
Noncontrolling interest in earnings of subsidiaries that have not incurred fixed charges | (108 | ) | (196 | ) | (152 | ) | (273 | ) | (3,069 | ) | (3,729 | ) | (4,158 | ) | ||||||||||||||
Total earnings | $ | 180,514 | $ | 325,623 | $ | 353,957 | $ | 504,049 | $ | 349,822 | $ | 434,842 | $ | 417,223 | ||||||||||||||
Combined fixed charges and preferred dividends (1): | ||||||||||||||||||||||||||||
Interest expense (2) | $ | 162,788 | $ | 174,362 | $ | 229,458 | $ | 239,844 | $ | 231,934 | $ | 242,357 | $ | 262,978 | ||||||||||||||
Capitalized interest | 1,553 | 3,085 | 4,153 | 7,246 | 5,837 | 2,671 | 4,955 | |||||||||||||||||||||
Preferred dividends (3) | 33,669 | 33,669 | 44,892 | 44,892 | 59,529 | 68,197 | 63,020 | |||||||||||||||||||||
Total combined fixed charges and preferred dividends | $ | 198,010 | $ | 211,116 | $ | 278,503 | $ | 291,982 | $ | 297,300 | $ | 313,225 | $ | 330,953 | ||||||||||||||
Ratio of earnings to combined fixed charges and preferred dividends | — | (4 | ) | 1.54 | 1.27 | 1.73 | 1.18 | 1.39 | 1.26 | |||||||||||||||||||
(1) | The interest portion of rental expense is not calculated because the rental expense of the Operating Partnership is not significant. |
(2) | Interest expense includes amortization of capitalized debt expenses and amortization of premiums and discounts. |
(3) | Includes preferred distributions to the Operating Partnership's partner in CW Joint Venture, LLC, through September 2013 when the outstanding perpetual preferred joint venture units were redeemed. |
(4) | Earnings were inadequate to cover combined fixed charges and preferred dividends for the nine months ended September 30, 2016 by $17,496. |