AvalonBay Communities (AVB) 10-Q 2012 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
	Ended		Ended		Ended		Ended		Ended
	June 30, 2012		December 31, 2011 (1)		December 31, 2010 (1)		December 31, 2009 (1)		December 31, 2008 (1)
Income from continuing operations before cumulative effect of change in accounting principle	$	116,511	$	160,493	$	99,482	$	78,328	$	98,173
(Plus):
Equity in income of unconsolidated entities, net of distributions received	4,972		618		4,856		5,475		6,728
Amortization of capitalized interest (2)	8,139		16,277		15,149		14,035		12,428
Earnings before fixed charges	$	129,622	$	177,388	$	119,487	$	97,838	$	117,329
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	3,107	$	6,933	$	11,785	$	6,241	$	5,287
Interest expense	66,819		167,814		169,997		145,090		110,249
Interest capitalized	24,945		33,863		33,393		48,226		74,621
Preferred dividend	—		—		—		—		10,454
Total fixed charges (3)	$	94,871	$	208,610	$	215,175	$	199,557	$	200,611
(Less):
Interest capitalized	24,945		33,863		33,393		48,226		74,621
Preferred dividend	—		—		—		—		10,454
Earnings (4)	$	199,548	$	352,135	$	301,269	$	249,169	$	232,865
Ratio (4 divided by 3)	2.10		1.69		1.40		1.25		1.16

AVALONBAY COMMUNITIES, INC.

RATIOS OF EARNINGS TO FIXED CHARGES

	Six Months		Year		Year		Year		Year
	Ended		Ended		Ended		Ended		Ended
	June 30, 2012		December 31, 2011		December 31, 2010 (1)		December 31, 2009 (1)		December 31, 2008 (1)
Income from continuing operations before cumulative effect of change in accounting principle	$	116,511	$	160,493	$	99,482	$	78,328	$	98,173
(Plus):
Equity in income of unconsolidated entities, net of distributions received	4,972		618		4,856		5,475		6,728
Amortization of capitalized interest (2)	8,139		16,277		15,149		14,035		12,428
Earnings before fixed charges	$	129,622	$	177,388	$	119,487	$	97,838	$	117,329
(Plus) Fixed charges:
Portion of rents representative of the interest factor	$	3,107	$	6,933	$	11,785	$	6,241	$	5,287
Interest expense	66,819		167,814		169,997		145,090		110,249
Interest capitalized	24,945		33,863		33,393		48,226		74,621
Total fixed charges (3)	$	94,871	$	208,610	$	215,175	$	199,557	$	190,157
(Less):
Interest capitalized	24,945		33,863		33,393		48,226		74,621
Earnings (4)	$	199,548	$	352,135	$	301,269	$	249,169	$	232,865
Ratio (4 divided by 3)	2.10		1.69		1.40		1.25		1.22

(1)The results of operations for 2008 through 2011 have been adjusted to reflect discontinued operations for properties sold or held for sale as of June 30, 2012.

(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).