Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Year Ended December 31, 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 | $ | 1,034,013 | $ | 743,216 | $ | 668,516 | $ | 57,827 | $ | 250,431 | ||||||||||
| (Plus): | ||||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 60,103 | 84,764 | 71,781 | 74,575 | 11,170 | |||||||||||||||
| Amortization of capitalized interest (2) | 27,779 | 25,150 | 22,489 | 20,157 | 17,929 | |||||||||||||||
| Earnings before fixed charges | 1,121,895 | 853,130 | 762,786 | 152,559 | 279,530 | |||||||||||||||
| (Plus) Fixed charges: | ||||||||||||||||||||
| Portion of rents representative of the interest factor | 8,483 | 7,790 | 7,504 | 7,112 | 6,873 | |||||||||||||||
| Interest expense | 187,510 | 175,615 | 180,618 | 172,402 | 136,920 | |||||||||||||||
| Interest capitalized | 78,872 | 79,834 | 69,961 | 66,838 | 49,556 | |||||||||||||||
| Preferred dividend | — | — | — | — | — | |||||||||||||||
| Total fixed charges (3) | 274,865 | 263,239 | 258,083 | 246,352 | 193,349 | |||||||||||||||
| (Less): | ||||||||||||||||||||
| Interest capitalized | 78,872 | 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) | $ | 1,317,888 | $ | 1,036,535 | $ | 936,776 | $ | 332,073 | $ | 423,323 | ||||||||||
| Ratio (4 divided by 3) | 4.79 | 3.94 | 3.63 | 1.35 | 2.19 | |||||||||||||||
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, 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 | $ | 1,034,013 | $ | 743,216 | $ | 668,516 | $ | 57,827 | $ | 250,431 | ||||||||||
| (Plus): | ||||||||||||||||||||
| Equity in income of unconsolidated entities, net of distributions received | 60,103 | 84,764 | 71,781 | 74,575 | 11,170 | |||||||||||||||
| Amortization of capitalized interest (2) | 27,779 | 25,150 | 22,489 | 20,157 | 17,929 | |||||||||||||||
| Earnings before fixed charges | 1,121,895 | 853,130 | 762,786 | 152,559 | 279,530 | |||||||||||||||
| (Plus) Fixed charges: | ||||||||||||||||||||
| Portion of rents representative of the interest factor | 8,483 | 7,790 | 7,504 | 7,112 | 6,873 | |||||||||||||||
| Interest expense | 187,510 | 175,615 | 180,618 | 172,402 | 136,920 | |||||||||||||||
| Interest capitalized | 78,872 | 79,834 | 69,961 | 66,838 | 49,556 | |||||||||||||||
| Total fixed charges (3) | 274,865 | 263,239 | 258,083 | 246,352 | 193,349 | |||||||||||||||
| (Less): | ||||||||||||||||||||
| Interest capitalized | 78,872 | 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) | $ | 1,317,888 | $ | 1,036,535 | $ | 936,776 | $ | 332,073 | $ | 423,323 | ||||||||||
| Ratio (4 divided by 3) | 4.79 | 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). |