Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Nine Months Ended September 30, 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 | $ | 116,467 | $ | 106,695 | $ | 85,764 | $ | 107,707 | $ | 237,490 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 737 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
Amortization of capitalized interest (2) | 11,935 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Earnings before fixed charges | $ | 129,139 | $ | 126,700 | $ | 105,274 | $ | 126,863 | $ | 256,963 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 5,327 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
Interest expense | 134,096 | 175,209 | 150,323 | 114,910 | 92,175 | |||||||||||||||
Interest capitalized | 22,962 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Preferred dividend | — | — | — | 10,454 | 8,700 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fixed charges (3) | $ | 162,385 | $ | 220,387 | $ | 204,790 | $ | 205,272 | $ | 177,158 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 22,962 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
Preferred dividend | — | — | — | 10,454 | 8,700 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Earnings (4) | $ | 268,562 | $ | 313,694 | $ | 261,838 | $ | 247,060 | $ | 352,303 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratio (4 divided by 3) | 1.65 | 1.42 | 1.28 | 1.20 | 1.99 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, 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 | $ | 116,467 | $ | 106,695 | $ | 85,764 | $ | 107,707 | $ | 237,490 | ||||||||||
(Plus): | ||||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received | 737 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
Amortization of capitalized interest (2) | 11,935 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Earnings before fixed charges | $ | 129,139 | $ | 126,700 | $ | 105,274 | $ | 126,863 | $ | 256,963 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(Plus) Fixed charges: | ||||||||||||||||||||
Portion of rents representative of the interest factor | $ | 5,327 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
Interest expense | 134,096 | 175,209 | 150,323 | 114,910 | 92,175 | |||||||||||||||
Interest capitalized | 22,962 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total fixed charges (3) | $ | 162,385 | $ | 220,387 | $ | 204,790 | $ | 194,818 | $ | 168,458 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(Less): | ||||||||||||||||||||
Interest capitalized | 22,962 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Earnings (4) | $ | 268,562 | $ | 313,694 | $ | 261,838 | $ | 247,060 | $ | 352,303 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Ratio (4 divided by 3) | 1.65 | 1.42 | 1.28 | 1.27 | 2.09 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
(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 September 30, 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). |