Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Three Months Ended March 31, 2011 | Year Ended December 31, 2010 (1) | Year Ended December 31, 2009 (1) | Year Ended December 31, 2008 (1) | Year Ended December 31, 2007 (1) | ||||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 30,537 | $ | 98,068 | $ | 76,950 | $ | 99,078 | $ | 219,789 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 722 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
Amortization of capitalized interest (2) | 3,840 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
Earnings before fixed charges | $ | 35,099 | $ | 118,073 | $ | 96,460 | $ | 118,234 | $ | 239,262 | ||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 1,664 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
Interest expense | 44,271 | 175,209 | 150,323 | 114,910 | 92,175 | |||||||||||||||
Interest capitalized | 6,343 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Preferred dividend | — | — | — | 10,454 | 8,700 | |||||||||||||||
Total fixed charges (3) | $ | 52,278 | $ | 220,388 | $ | 204,790 | $ | 205,272 | $ | 177,158 | ||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 6,343 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Preferred dividend | — | — | — | 10,454 | 8,700 | |||||||||||||||
Earnings (4) | $ | 81,034 | $ | 305,067 | $ | 253,024 | $ | 238,431 | $ | 334,602 | ||||||||||
Ratio (4 divided by 3) | 1.55 | 1.38 | 1.24 | 1.16 | 1.89 | |||||||||||||||
AVALONBAY COMMUNITIES, INC. RATIOS OF EARNINGS TO FIXED CHARGES |
| |||||||||||||||||||
| Three Months | Year | Year | Year | Year | ||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
| March 31, 2011 | December 31, 2010 (1) | December 31, 2009 (1) | December 31, 2008 (1) | December 31, 2007 (1) | ||||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle | $ | 30,537 | $ | 98,068 | $ | 76,950 | $ | 99,078 | $ | 219,789 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 722 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
Amortization of capitalized interest (2) | 3,840 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
Earnings before fixed charges | $ | 35,099 | $ | 118,073 | $ | 96,460 | $ | 118,234 | $ | 239,262 | ||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 1,664 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
Interest expense | 44,271 | 175,209 | 150,323 | 114,910 | 92,175 | |||||||||||||||
Interest capitalized | 6,343 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Total fixed charges (3) | $ | 52,278 | $ | 220,388 | $ | 204,790 | $ | 194,818 | $ | 168,458 | ||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 6,343 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Earnings (4) | $ | 81,034 | $ | 305,067 | $ | 253,024 | $ | 238,431 | $ | 334,602 | ||||||||||
Ratio (4 divided by 3) | 1.55 | 1.38 | 1.24 | 1.22 | 1.99 | |||||||||||||||
| (1) | The results of operations for 2007 through 2010 have been adjusted to reflect discontinued operations for properties sold or held for sale as of March 31, 2011. |
| (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). |