AvalonBay Communities (AVB) 10-Q 2006 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,		December 31,		December 31,		December 31,		December 31,		December 31,
	2006		2005		2004		2003		2002		2001
Income before gain on sale of communities and cumulative effect of change in accounting principle	$	130,564	$	107,670	$	71,639	$	79,167	$	80,002	$	133,755
(Plus):
Minority interest in consolidated partnerships		395		1,481		150		950		865		948
Amortization of capitalized interest (1)		5,280		5,957		5,114		4,429		3,605		2,607
Earnings before fixed charges	$	136,239	$	115,108	$	76,903	$	84,546	$	84,472	$	137,310
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	371	$	354	$	323	$	503	$	527	$	472
Interest expense		82,195		127,099		131,103		130,178		114,282		92,597
Interest capitalized		32,479		25,284		20,566		24,709		29,937		27,635
Preferred dividend		6,525		8,700		8,700		10,744		17,896		40,035
Total fixed charges (2)	$	121,570	$	161,437	$	160,692	$	166,134	$	162,642	$	160,739
(Less):
Interest capitalized		32,479		25,284		20,566		24,709		29,937		27,635
Preferred dividend		6,525		8,700		8,700		10,744		17,896		40,035
Earnings (3)	$	218,805	$	242,561	$	208,329	$	215,227	$	199,281	$	230,379
Ratio (3 divided by 2)		1.80		1.50		1.30		1.30		1.23		1.43
Exhibit 12.1 (continued)
AVALONBAY COMMUNITIES, INC. RATIOS OF EARNINGS TO FIXED CHARGES
	Nine Months		Year		Year		Year		Year		Year
	Ended		Ended		Ended		Ended		Ended		Ended
	September 30,		December 31,		December 31,		December 31,		December 31,		December 31,
	2006		2005		2004		2003		2002		2001
Income before gain on sale of communities and extraordinary item	$	130,564	$	107,670	$	71,639	$	79,167	$	80,002	$	133,755
(Plus):
Minority interest in consolidated partnerships		395		1,481		150		950		865		948
Amortization of capitalized interest (1)		5,280		5,957		5,114		4,429		3,605		2,607
Earnings before fixed charges	$	136,239	$	115,108	$	76,903	$	84,546	$	84,472	$	137,310
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	371	$	354	$	323	$	503	$	527	$	472
Interest expense		82,195		127,099		131,103		130,178		114,282		92,597
Interest capitalized		32,479		25,284		20,566		24,709		29,937		27,635
Total fixed charges (2)	$	115,045	$	152,737	$	151,992	$	155,390	$	144,746	$	120,704
(Less):
Interest capitalized		32,479		25,284		20,566		24,709		29,937		27,635
Earnings (3)	$	218,805	$	242,561	$	208,329	$	215,227	$	199,281	$	230,379
Ratio (3 divided by 2)		1.90		1.59		1.37		1.39		1.38		1.91

(1) 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).