Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Six Months | Year | Year | Year | Year | Year | ||||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | ||||||||||||||||||||
June 30, 2008 | December 31, 2007 (1) | December 31, 2006 (1) | December 31, 2005 (1) | December 31, 2004 (1) | December 31, 2003 (1) | ||||||||||||||||||||
Income before gain on sale of communities and cumulative effect of change in accounting principle | $ | 94,244 | $ | 235,745 | $ | 151,381 | $ | 72,956 | $ | 28,283 | $ | 32,136 | |||||||||||||
(Plus): | |||||||||||||||||||||||||
Minority interest in consolidated partnerships | 210 | 1,585 | 573 | 1,481 | 150 | 950 | |||||||||||||||||||
Amortization of capitalized interest (2) | 5,617 | 9,941 | 7,503 | 5,957 | 5,114 | 4,429 | |||||||||||||||||||
Earnings before fixed charges | $ | 100,071 | $ | 247,271 | $ | 159,457 | $ | 80,394 | $ | 33,547 | $ | 37,515 | |||||||||||||
(Plus) Fixed charges: | |||||||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 451 | $ | 722 | $ | 518 | $ | 354 | $ | 323 | $ | 503 | |||||||||||||
Interest expense | 57,258 | 97,545 | 111,046 | 127,099 | 131,103 | 130,178 | |||||||||||||||||||
Interest capitalized | 38,822 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | |||||||||||||||||||
Preferred dividend | 4,350 | 8,700 | 8,700 | 8,700 | 8,700 | 10,744 | |||||||||||||||||||
Total fixed charges (3) | $ | 100,881 | $ | 180,086 | $ | 166,652 | $ | 161,437 | $ | 160,692 | $ | 166,134 | |||||||||||||
(Less): | |||||||||||||||||||||||||
Interest capitalized | 38,822 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | |||||||||||||||||||
Preferred dividend | 4,350 | 8,700 | 8,700 | 8,700 | 8,700 | 10,744 | |||||||||||||||||||
Earnings (4) | $ | 157,780 | $ | 345,538 | $ | 271,021 | $ | 207,847 | $ | 164,973 | $ | 168,196 | |||||||||||||
Ratio (4 divided by 3) | 1.56 | 1.92 | 1.63 | 1.29 | 1.03 | 1.01 | |||||||||||||||||||
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
RATIOS OF EARNINGS TO FIXED CHARGES
Six Months | Year | Year | Year | Year | Year | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
June 30, 2008 | December 31, 2007 (1) | December 31, 2006 (1) | December 31, 2005 (1) | December 31, 2004 (1) | December 31, 2003 (1) | |||||||||||||||||||
Income before gain on sale of communities and extraordinary item | $ | 94,244 | $ | 235,745 | $ | 151,381 | $ | 72,956 | $ | 28,283 | $ | 32,136 | ||||||||||||
(Plus): | ||||||||||||||||||||||||
Minority interest in consolidated partnerships | 210 | 1,585 | 573 | 1,481 | 150 | 950 | ||||||||||||||||||
Amortization of capitalized interest (2) | 5,617 | 9,941 | 7,503 | 5,957 | 5,114 | 4,429 | ||||||||||||||||||
Earnings before fixed charges | $ | 100,071 | $ | 247,271 | $ | 159,457 | $ | 80,394 | $ | 33,547 | $ | 37,515 | ||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 451 | $ | 722 | $ | 518 | $ | 354 | $ | 323 | $ | 503 | ||||||||||||
Interest expense | 57,258 | 97,545 | 111,046 | 127,099 | 131,103 | 130,178 | ||||||||||||||||||
Interest capitalized | 38,822 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Total fixed charges (3) | $ | 96,531 | $ | 171,386 | $ | 157,952 | $ | 152,737 | $ | 151,992 | $ | 155,390 | ||||||||||||
(Less): | ||||||||||||||||||||||||
Interest capitalized | 38,822 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Earnings (4) | $ | 157,780 | $ | 345,538 | $ | 271,021 | $ | 207,847 | $ | 164,973 | $ | 168,196 | ||||||||||||
Ratio (4 divided by 3) | 1.63 | 2.02 | 1.72 | 1.36 | 1.09 | 1.08 | ||||||||||||||||||
(1) | The results of operations for 2003 through 2007 have been adjusted to reflect discontinued operations for properties sold or held for sale as of June 30, 2008. | |
(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). |