AvalonBay Communities (AVB) 10-Q 2009 Q3 Quarterly report

Exhibit 12.1

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Nine Months			Year			Year		Year		Year		Year
	Ended			Ended			Ended		Ended		Ended		Ended
	September 30, 2009			December 31, 2008 (1)			December 31, 2007 (1)		December 31, 2006 (1)		December 31, 2005 (1)		December 31, 2004 (1)
Income from continuing operations before gain on sale of communities and cumulative effect of change in accounting principle	$	91,256		$	108,332		$	225,768	$	144,301	$	92,713	$	58,666
(Plus):
Net (loss) income attributable to noncontrolling interests		(1,329	)		(741	)		1,585		573		1,481		150
Amortization of capitalized interest (2)		10,269			12,428			9,941		7,503		5,957		5,114
Earnings before fixed charges	$	100,196		$	120,019		$	237,294	$	152,377	$	100,151	$	63,930
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	644		$	855		$	722	$	518	$	354	$	323
Interest expense		107,836			114,878			94,540		106,271		122,787		127,123
Interest capitalized		37,923			74,621			73,118		46,388		25,284		20,566
Preferred dividend		—			10,454			8,700		8,700		8,700		8,700
Total fixed charges (3)	$	146,403		$	200,808		$	177,080	$	161,877	$	157,125	$	156,712
(Less):
Interest capitalized		37,923			74,621			73,118		46,388		25,284		20,566
Preferred dividend		—			10,454			8,700		8,700		8,700		8,700
Earnings (4)	$	208,676		$	235,752		$	332,556	$	259,166	$	223,292	$	191,376
Ratio (4 divided by 3)		1.43			1.17			1.88		1.60		1.42		1.22

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

	Nine Months			Year			Year		Year		Year		Year
	Ended			Ended			Ended		Ended		Ended		Ended
	September 30, 2009			December 31, 2008 (1)			December 31, 2007 (1)		December 31, 2006 (1)		December 31, 2005 (1)		December 31, 2004 (1)
Income from continuing operations before gain on sale of communities and cumulative effect of change in accounting principle	$	91,256		$	108,332		$	225,768	$	144,301	$	92,713	$	58,666
(Plus):
Net (loss) income attributable to noncontrolling interests		(1,329	)		(741	)		1,585		573		1,481		150
Amortization of capitalized interest (2)		10,269			12,428			9,941		7,503		5,957		5,114
Earnings before fixed charges	$	100,196		$	120,019		$	237,294	$	152,377	$	100,151	$	63,930
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	644		$	855		$	722	$	518	$	354	$	323
Interest expense		107,836			114,878			94,540		106,271		122,787		127,123
Interest capitalized		37,923			74,621			73,118		46,388		25,284		20,566
Total fixed charges (3)	$	146,403		$	190,354		$	168,380	$	153,177	$	148,425	$	148,012
(Less):
Interest capitalized		37,923			74,621			73,118		46,388		25,284		20,566
Earnings (4)	$	208,676		$	235,752		$	332,556	$	259,166	$	223,292	$	191,376
Ratio (4 divided by 3)		1.43			1.24			1.98		1.69		1.50		1.29

(1)	The results of operations for 2004 through 2008 have been adjusted to reflect discontinued operations for properties sold or held for sale as of September 30, 2009.
(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).