AvalonBay Communities (AVB) 10-K 2009 FY Annual report

Exhibit 12.1

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

	Year		Year		Year		Year		Year
	Ended		Ended		Ended		Ended		Ended
	December 31, 2009		December 31, 2008(1)		December 31, 2007(1)		December 31, 2006(1)		December 31, 2005(1)
Income from continuing operations before cumulative effect of change in accounting principle	$	76,413	$	98,492	$	219,364	$	137,306	$	74,947
(Plus):
Equity in income of unconsolidated entities, net of distributions received		5,475		6,728		9,532		7,478		(4,802	)
Amortization of capitalized interest (2)		14,035		12,428		9,941		7,503		5,957
Earnings before fixed charges	$	95,923	$	117,648	$	238,837	$	152,287	$	76,102
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	6,241	$	5,287	$	3,165	$	1,410	$	1,495
Interest expense		150,323		114,910		92,175		103,910		120,670
Interest capitalized		48,226		74,621		73,118		46,388		25,284
Preferred dividend		—		10,454		8,700		8,700		8,700
Total fixed charges (3)	$	204,790	$	205,272	$	177,158	$	160,408	$	156,149
(Less):
Interest capitalized		48,226		74,621		73,118		46,388		25,284
Preferred dividend		—		10,454		8,700		8,700		8,700
Earnings (4)	$	252,487	$	237,845	$	334,177	$	257,607	$	198,267
Ratio (4 divided by 3)		1.23		1.16		1.89		1.61		1.27

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

	Year		Year		Year		Year		Year
	Ended		Ended		Ended		Ended		Ended
	December 31, 2009		December 31, 2008(1)		December 31, 2007(1)		20 December 31, 2006(1)		December 31, 2005(1)
Income from continuing operations before cumulative effect of change in accounting principle	$	76,413	$	98,492	$	219,364	$	137,306	$	74,947
(Plus):
Equity in income of unconsolidated entities, net of distributions received		5,475		6,728		9,532		7,478		(4,802	)
Amortization of capitalized interest (2)		14,035		12,428		9,941		7,503		5,957
Earnings before fixed charges	$	95,923	$	117,648	$	238,837	$	152,287	$	76,102
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	6,241	$	5,287	$	3,165	$	1,410	$	1,495
Interest expense		150,323		114,910		92,175		103,910		120,670
Interest capitalized		48,226		74,621		73,118		46,388		25,284
Total fixed charges (3)	$	204,790	$	194,818	$	168,458	$	151,708	$	147,449
(Less):
Interest capitalized		48,226		74,621		73,118		46,388		25,284
Earnings (4)	$	252,487	$	237,845	$	334,177	$	257,607	$	198,267
Ratio (4 divided by 3)		1.23		1.22		1.98		1.70		1.34

(1)	The results of operations for 2005 through 2009 have been adjusted to reflect discontinued operations for properties sold or held for sale as of December 31, 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).