AvalonBay Communities (AVB) 10-Q 2017 Q3 Quarterly report

Exhibit 12.1

AVALONBAY COMMUNITIES, INC.

RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Nine Months Ended September 30, 2017		Year Ended December 31,  2016		Year Ended December 31,  2015		Year Ended December 31,  2014 (1)		Year Ended December 31,  2013 (1)
Income from continuing operations before cumulative effect of change in accounting principle	$	639,276	$	1,034,013	$	743,216	$	668,516	$	57,827
(Plus):
Equity in income of unconsolidated entities, net of distributions received	27,649		60,103		84,764		71,781		74,575
Amortization of capitalized interest (2)	22,118		27,779		25,150		22,489		20,157
Earnings before fixed charges	$	689,043	$	1,121,895	$	853,130	$	762,786	$	152,559
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	6,305	$	8,483	$	7,790	$	7,504	$	7,112
Interest expense	147,138		187,510		175,615		180,618		172,402
Interest capitalized	51,323		78,872		79,834		69,961		66,838
Preferred dividend	—		—		—		—		—
Total fixed charges (3)	$	204,766	$	274,865	$	263,239	$	258,083	$	246,352
(Less):
Interest capitalized	51,323		78,872		79,834		69,961		66,838
Preferred dividend	—		—		—		—		—
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges	—		—		—		14,132		—
Earnings (4)	$	842,486	$	1,317,888	$	1,036,535	$	936,776	$	332,073
Ratio (4 divided by 3)	4.11		4.79		3.94		3.63		1.35

AVALONBAY COMMUNITIES, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

	Nine Months Ended September 30, 2017		Year Ended December 31,  2016		Year Ended December 31,  2015		Year Ended December 31,  2014 (1)		Year Ended December 31,  2013 (1)
Income from continuing operations before cumulative effect of change in accounting principle	$	639,276	$	1,034,013	$	743,216	$	668,516	$	57,827
(Plus):
Equity in income of unconsolidated entities, net of distributions received	27,649		60,103		84,764		71,781		74,575
Amortization of capitalized interest (2)	22,118		27,779		25,150		22,489		20,157
Earnings before fixed charges	$	689,043	$	1,121,895	$	853,130	$	762,786	$	152,559
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	6,305	$	8,483	$	7,790	$	7,504	$	7,112
Interest expense	147,138		187,510		175,615		180,618		172,402
Interest capitalized	51,323		78,872		79,834		69,961		66,838
Total fixed charges (3)	$	204,766	$	274,865	$	263,239	$	258,083	$	246,352
(Less):
Interest capitalized	51,323		78,872		79,834		69,961		66,838
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges	—		—		—		14,132		—
Earnings (4)	$	842,486	$	1,317,888	$	1,036,535	$	936,776	$	332,073
Ratio (4 divided by 3)	4.11		4.79		3.94		3.63		1.35

(1) The results of operations for 2013 and 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).