AvalonBay Communities (AVB) 10-Q 2008 Q2 Quarterly report

Exhibit 12.1

AVALONBAY COMMUNITIES, INC.
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

	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).