Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Year Ended December 31, 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 | $ | 668,516 | $ | 57,827 | $ | 250,431 | $ | 140,215 | $ | 81,071 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 71,781 | 74,575 | 11,170 | 618 | 4,856 | |||||||||||||||
Amortization of capitalized interest (2) | 22,489 | 20,157 | 17,929 | 16,277 | 15,149 | |||||||||||||||
Earnings before fixed charges | 762,786 | 152,559 | 279,530 | 157,110 | 101,076 | |||||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | 7,504 | 7,112 | 6,873 | 6,933 | 11,785 | |||||||||||||||
Interest expense | 180,618 | 172,402 | 136,920 | 167,814 | 169,997 | |||||||||||||||
Interest capitalized | 69,961 | 66,838 | 49,556 | 33,863 | 33,393 | |||||||||||||||
Preferred dividend | — | — | — | — | — | |||||||||||||||
Total fixed charges (3) | 258,083 | 246,352 | 193,349 | 208,610 | 215,175 | |||||||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 69,961 | 66,838 | 49,556 | 33,863 | 33,393 | |||||||||||||||
Preferred dividend | — | — | — | — | — | |||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | 14,132 | — | — | — | — | |||||||||||||||
Earnings (4) | $ | 936,776 | $ | 332,073 | $ | 423,323 | $ | 331,857 | $ | 282,858 | ||||||||||
Ratio (4 divided by 3) | 3.63 | 1.35 | 2.19 | 1.59 | 1.31 |
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
Year Ended December 31, 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 | $ | 668,516 | $ | 57,827 | $ | 250,431 | $ | 140,215 | $ | 81,071 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 71,781 | 74,575 | 11,170 | 618 | 4,856 | |||||||||||||||
Amortization of capitalized interest (2) | 22,489 | 20,157 | 17,929 | 16,277 | 15,149 | |||||||||||||||
Earnings before fixed charges | 762,786 | 152,559 | 279,530 | 157,110 | 101,076 | |||||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | 7,504 | 7,112 | 6,873 | 6,933 | 11,785 | |||||||||||||||
Interest expense | 180,618 | 172,402 | 136,920 | 167,814 | 169,997 | |||||||||||||||
Interest capitalized | 69,961 | 66,838 | 49,556 | 33,863 | 33,393 | |||||||||||||||
Total fixed charges (3) | 258,083 | 246,352 | 193,349 | 208,610 | 215,175 | |||||||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 69,961 | 66,838 | 49,556 | 33,863 | 33,393 | |||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | 14,132 | — | — | — | — | |||||||||||||||
Earnings (4) | $ | 936,776 | $ | 332,073 | $ | 423,323 | $ | 331,857 | $ | 282,858 | ||||||||||
Ratio (4 divided by 3) | 3.63 | 1.35 | 2.19 | 1.59 | 1.31 |
(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). |