AvalonBay Communities (AVB) 10-Q 2014 Q2 Quarterly report

Exhibit 12.1

AVALONBAY COMMUNITIES, INC.

RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Six Months Ended June 30, 2014		Year Ended December 31,  2013 (1)		Year Ended December 31,  2012 (1)		Year Ended December 31,  2011 (1)		Year Ended December 31,  2010 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle	$	275,617	$	57,827	$	250,431	$	140,215	$	81,071
(Plus):
Equity in income of unconsolidated entities, net of distributions received	47,950		36,850		11,170		618		4,856
Amortization of capitalized interest (2)	10,717		20,157		17,929		16,277		15,149
Earnings before fixed charges	$	334,284	$	114,834	$	279,530	$	157,110	$	101,076
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	3,424	$	7,112	$	6,873	$	6,933	$	11,785
Interest expense	86,255		172,402		136,920		167,814		169,997
Interest capitalized	38,305		66,838		49,556		33,863		33,393
Preferred dividend	—		—		—		—		—
Total fixed charges (3)	$	127,984	$	246,352	$	193,349	$	208,610	$	215,175
(Less):
Interest capitalized	38,305		66,838		49,556		33,863		33,393
Preferred dividend	—		—		—		—		—
Earnings (4)	$	423,963	$	294,348	$	423,323	$	331,857	$	282,858
Ratio (4 divided by 3)	3.31		1.19		2.19		1.59		1.31

AVALONBAY COMMUNITIES, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

	Six Months Ended June 30, 2014		Year Ended December 31,  2013 (1)		Year Ended December 31,  2012 (1)		Year Ended December 31,  2011 (1)		Year Ended December 31,  2010 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle	$	275,617	$	57,827	$	250,431	$	140,215	$	81,071
(Plus):
Equity in income of unconsolidated entities, net of distributions received	47,950		36,850		11,170		618		4,856
Amortization of capitalized interest (2)	10,717		20,157		17,929		16,277		15,149
Earnings before fixed charges	$	334,284	$	114,834	$	279,530	$	157,110	$	101,076
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	3,424	$	7,112	$	6,873	$	6,933	$	11,785
Interest expense	86,255		172,402		136,920		167,814		169,997
Interest capitalized	38,305		66,838		49,556		33,863		33,393
Total fixed charges (3)	$	127,984	$	246,352	$	193,349	$	208,610	$	215,175
(Less):
Interest capitalized	38,305		66,838		49,556		33,863		33,393
Earnings (4)	$	423,963	$	294,348	$	423,323	$	331,857	$	282,858
Ratio (4 divided by 3)	3.31		1.19		2.19		1.59		1.31

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(1) The results of operations for 2010 through 2013 have been adjusted to remove the Company's earnings classified as discontinued operations.

(2) Represents an estimate of capitalized interest costs based on the Company’s established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed).