Exhibit 12
EQUITY RESIDENTIAL ERP OPERATING LIMITED PARTNERSHIP Computation of Ratio of Earnings to Combined Fixed Charges ($ in thousands) | ||||||||||||||||||||||||||||
Quarter Ended March 31, | Year Ended December 31, | |||||||||||||||||||||||||||
2013 | 2012 | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||||||||
(Loss) income from continuing operations | $ | (153,352 | ) | $ | (13,426 | ) | $ | 211,055 | $ | (24,826 | ) | $ | (164,135 | ) | $ | (143,578 | ) | $ | (197,557 | ) | ||||||||
Interest expense incurred, net | 195,685 | 118,011 | 456,763 | 461,754 | 457,613 | 484,106 | 467,213 | |||||||||||||||||||||
Amortization of deferred financing costs | 7,023 | 2,934 | 21,320 | 16,651 | 9,453 | 11,925 | 9,309 | |||||||||||||||||||||
Earnings before combined fixed charges and preferred distributions | 49,356 | 107,519 | 689,138 | 453,579 | 302,931 | 352,453 | 278,965 | |||||||||||||||||||||
Preferred Share/Preference Unit distributions | (1,036 | ) | (3,466 | ) | (10,355 | ) | (13,865 | ) | (14,368 | ) | (14,479 | ) | (14,507 | ) | ||||||||||||||
Premium on redemption of Preferred Shares/Preference Units | — | — | (5,152 | ) | — | — | — | — | ||||||||||||||||||||
Preference Interest and Junior Preference Unit distributions | — | — | — | — | — | (9 | ) | (15 | ) | |||||||||||||||||||
Earnings before combined fixed charges | $ | 48,320 | $ | 104,053 | $ | 673,631 | $ | 439,714 | $ | 288,563 | $ | 337,965 | $ | 264,443 | ||||||||||||||
Interest expense incurred, net | $ | 195,685 | $ | 118,011 | $ | 456,763 | $ | 461,754 | $ | 457,613 | $ | 484,106 | $ | 467,213 | ||||||||||||||
Amortization of deferred financing costs | 7,023 | 2,934 | 21,320 | 16,651 | 9,453 | 11,925 | 9,309 | |||||||||||||||||||||
Interest capitalized for real estate and unconsolidated entities under development | 8,413 | 4,996 | 22,509 | 9,108 | 13,008 | 34,859 | 60,072 | |||||||||||||||||||||
Amortization of deferred financing costs for real estate under development | 1 | — | — | — | 2,768 | 3,585 | 1,986 | |||||||||||||||||||||
Total combined fixed charges | 211,122 | 125,941 | 500,592 | 487,513 | 482,842 | 534,475 | 538,580 | |||||||||||||||||||||
Preferred Share/Preference Unit distributions | 1,036 | 3,466 | 10,355 | 13,865 | 14,368 | 14,479 | 14,507 | |||||||||||||||||||||
Premium on redemption of Preferred Shares/Preference Units | — | — | 5,152 | — | — | — | — | |||||||||||||||||||||
Preference Interest and Junior Preference Unit distributions | — | — | — | — | — | 9 | 15 | |||||||||||||||||||||
Total combined fixed charges and preferred distributions | $ | 212,158 | $ | 129,407 | $ | 516,099 | $ | 501,378 | $ | 497,210 | $ | 548,963 | $ | 553,102 | ||||||||||||||
Ratio of earnings before combined fixed charges to total combined fixed charges (1) | — | — | 1.35 | — | — | — | — | |||||||||||||||||||||
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1) | — | — | 1.34 | — | — | — | — |
(1) For the quarters ended March 31, 2013 and 2012 and the years ended December 31, 2011, 2010, 2009 and 2008, the coverage deficiencies approximated $162.8 million, $21.9 million, $47.8 million, $194.3 million, $196.5 million and $274.1 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations. The ratios have been further reduced due to non-cash depreciation expense and impairment charges and premiums on the redemption of Preferred Shares/Preference Units. The Company was in compliance with its unsecured public debt covenants for all periods presented.
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