Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Six Months Ended June 30, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | |||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 435,270 | $ | 743,594 | $ | 668,516 | $ | 57,827 | $ | 250,431 | |||||||||
(Plus): | |||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 11,603 | 84,764 | 71,781 | 74,575 | 11,170 | ||||||||||||||
Amortization of capitalized interest (2) | 13,252 | 25,150 | 22,489 | 20,157 | 17,929 | ||||||||||||||
Earnings before fixed charges | $ | 460,125 | $ | 853,508 | $ | 762,786 | $ | 152,559 | $ | 279,530 | |||||||||
(Plus) Fixed charges: | |||||||||||||||||||
Portion of rents representative of the interest factor | $ | 3,805 | $ | 7,790 | $ | 7,504 | $ | 7,112 | $ | 6,873 | |||||||||
Interest expense | 89,991 | 175,615 | 180,618 | 172,402 | 136,920 | ||||||||||||||
Interest capitalized | 40,633 | 79,834 | 69,961 | 66,838 | 49,556 | ||||||||||||||
Preferred dividend | — | — | — | — | — | ||||||||||||||
Total fixed charges (3) | $ | 134,429 | $ | 263,239 | $ | 258,083 | $ | 246,352 | $ | 193,349 | |||||||||
(Less): | |||||||||||||||||||
Interest capitalized | 40,633 | 79,834 | 69,961 | 66,838 | 49,556 | ||||||||||||||
Preferred dividend | — | — | — | — | — | ||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | — | 14,132 | — | — | ||||||||||||||
Earnings (4) | $ | 553,921 | $ | 1,036,913 | $ | 936,776 | $ | 332,073 | $ | 423,323 | |||||||||
Ratio (4 divided by 3) | 4.12 | 3.94 | 3.63 | 1.35 | 2.19 |
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
Six Months Ended June 30, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 (1) | Year Ended December 31, 2013 (1) | Year Ended December 31, 2012 (1) | |||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 435,270 | $ | 743,594 | $ | 668,516 | $ | 57,827 | $ | 250,431 | |||||||||
(Plus): | |||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 11,603 | 84,764 | 71,781 | 74,575 | 11,170 | ||||||||||||||
Amortization of capitalized interest (2) | 13,252 | 25,150 | 22,489 | 20,157 | 17,929 | ||||||||||||||
Earnings before fixed charges | $ | 460,125 | $ | 853,508 | $ | 762,786 | $ | 152,559 | $ | 279,530 | |||||||||
(Plus) Fixed charges: | |||||||||||||||||||
Portion of rents representative of the interest factor | $ | 3,805 | $ | 7,790 | $ | 7,504 | $ | 7,112 | $ | 6,873 | |||||||||
Interest expense | 89,991 | 175,615 | 180,618 | 172,402 | 136,920 | ||||||||||||||
Interest capitalized | 40,633 | 79,834 | 69,961 | 66,838 | 49,556 | ||||||||||||||
Total fixed charges (3) | $ | 134,429 | $ | 263,239 | $ | 258,083 | $ | 246,352 | $ | 193,349 | |||||||||
(Less): | |||||||||||||||||||
Interest capitalized | 40,633 | 79,834 | 69,961 | 66,838 | 49,556 | ||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — | — | 14,132 | — | — | ||||||||||||||
Earnings (4) | $ | 553,921 | $ | 1,036,913 | $ | 936,776 | $ | 332,073 | $ | 423,323 | |||||||||
Ratio (4 divided by 3) | 4.12 | 3.94 | 3.63 | 1.35 | 2.19 |
(1) | The results of operations for 2012 through 2014 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). |