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
Nine Months | Year | Year | Year | Year | Year | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
September 30, 2008 | December 31, 2007 (1) | December 31, 2006 (1) | December 31, 2005 (1) | December 31, 2004 (1) | December 31, 2003 (1)(2) | |||||||||||||||||||
Income before gain on sale of communities and cumulative effect of change in accounting principle | $ | 139,900 | $ | 231,183 | $ | 147,794 | $ | 69,860 | $ | 25,299 | $ | 28,629 | ||||||||||||
(Plus): | ||||||||||||||||||||||||
Minority interest in consolidated partnerships | (484 | ) | 1,585 | 573 | 1,481 | 150 | 950 | |||||||||||||||||
Amortization of capitalized interest (3) | 8,896 | 9,941 | 7,503 | 5,957 | 5,114 | 4,429 | ||||||||||||||||||
Earnings before fixed charges | $ | 148,312 | $ | 242,709 | $ | 155,870 | $ | 77,298 | $ | 30,563 | $ | 34,008 | ||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 644 | $ | 722 | $ | 518 | $ | 354 | $ | 323 | $ | 503 | ||||||||||||
Interest expense | 85,622 | 97,545 | 111,046 | 127,099 | 131,103 | 130,178 | ||||||||||||||||||
Interest capitalized | 57,624 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Preferred dividend | 6,525 | 8,700 | 8,700 | 8,700 | 8,700 | 10,744 | ||||||||||||||||||
Total fixed charges (4) | $ | 150,415 | $ | 180,086 | $ | 166,652 | $ | 161,437 | $ | 160,692 | $ | 166,134 | ||||||||||||
(Less): | ||||||||||||||||||||||||
Interest capitalized | 57,624 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Preferred dividend | 6,525 | 8,700 | 8,700 | 8,700 | 8,700 | 10,744 | ||||||||||||||||||
Earnings (5) | $ | 234,578 | $ | 340,976 | $ | 267,434 | $ | 204,751 | $ | 161,989 | $ | 164,689 | ||||||||||||
Ratio (5 divided by 4) | 1.56 | 1.89 | 1.60 | 1.27 | 1.01 | 0.99 | ||||||||||||||||||
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
RATIOS OF EARNINGS TO FIXED CHARGES
Nine Months | Year | Year | Year | Year | Year | |||||||||||||||||||
Ended | Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
September 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 | $ | 139,900 | $ | 231,183 | $ | 147,794 | $ | 69,860 | $ | 25,299 | $ | 28,629 | ||||||||||||
(Plus): | ||||||||||||||||||||||||
Minority interest in consolidated partnerships | (484 | ) | 1,585 | 573 | 1,481 | 150 | 950 | |||||||||||||||||
Amortization of capitalized interest (3) | 8,896 | 9,941 | 7,503 | 5,957 | 5,114 | 4,429 | ||||||||||||||||||
Earnings before fixed charges | $ | 148,312 | $ | 242,709 | $ | 155,870 | $ | 77,298 | $ | 30,563 | $ | 34,008 | ||||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 644 | $ | 722 | $ | 518 | $ | 354 | $ | 323 | $ | 503 | ||||||||||||
Interest expense | 85,622 | 97,545 | 111,046 | 127,099 | 131,103 | 130,178 | ||||||||||||||||||
Interest capitalized | 57,624 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Total fixed charges (4) | $ | 143,890 | $ | 171,386 | $ | 157,952 | $ | 152,737 | $ | 151,992 | $ | 155,390 | ||||||||||||
(Less): | ||||||||||||||||||||||||
Interest capitalized | 57,624 | 73,119 | 46,388 | 25,284 | 20,566 | 24,709 | ||||||||||||||||||
Earnings (5) | $ | 234,578 | $ | 340,976 | $ | 267,434 | $ | 204,751 | $ | 161,989 | $ | 164,689 | ||||||||||||
Ratio (5 divided by 4) | 1.63 | 1.99 | 1.69 | 1.34 | 1.07 | 1.06 | ||||||||||||||||||
(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 September 30, 2008. | |
(2) | For 2003, the coverage deficiency for the ratio of earnings to combined fixed charges and preferred stock dividends was approximately $1.445 million. This deficiency was caused by the exclusion of earnings relating to communities sold or held for sale as of September 30, 2008. | |
(3) | 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). |