Exhibit 12
ERP OPERATING LIMITED PARTNERSHIP
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
Year Ended December 31, | ||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(Loss) income from continuing operations | $ | (19,844 | ) | $ | 2,931 | $ | (40,054 | ) | $ | (4,982 | ) | $ | (29,983 | ) | ||||||
Interest expense incurred, net | 470,654 | 496,272 | 482,317 | 482,126 | 410,551 | |||||||||||||||
Amortization of deferred financing costs | 10,369 | 12,566 | 9,647 | 10,040 | 8,004 | |||||||||||||||
Earnings before combined fixed charges and preferred distributions | 461,179 | 511,769 | 451,910 | 487,184 | 388,572 | |||||||||||||||
Preference Unit distributions | (14,368 | ) | (14,479 | ) | (14,507 | ) | (22,792 | ) | (37,113 | ) | ||||||||||
Premium on redemption of Preference Units | — | — | — | (6,154 | ) | (3,965 | ) | |||||||||||||
Preference Interest and Junior Preference Unit distributions | — | (9 | ) | (15 | ) | (441 | ) | (2,002 | ) | |||||||||||
Premium on redemption of Preference Interests | — | — | — | — | (684 | ) | ||||||||||||||
Earnings before combined fixed charges | $ | 446,811 | $ | 497,281 | $ | 437,388 | $ | 457,797 | $ | 344,808 | ||||||||||
Interest expense incurred, net | $ | 470,654 | $ | 496,272 | $ | 482,317 | $ | 482,126 | $ | 410,551 | ||||||||||
Amortization of deferred financing costs | 10,369 | 12,566 | 9,647 | 10,040 | 8,004 | |||||||||||||||
Interest capitalized for real estate and unconsolidated entities under development | 13,008 | 34,859 | 60,072 | 45,107 | 20,734 | |||||||||||||||
Amortization of deferred financing costs for real estate under development | 2,768 | 3,585 | 1,986 | 1,521 | 46 | |||||||||||||||
Total combined fixed charges | 496,799 | 547,282 | 554,022 | 538,794 | 439,335 | |||||||||||||||
Preference Unit distributions | 14,368 | 14,479 | 14,507 | 22,792 | 37,113 | |||||||||||||||
Premium on redemption of Preference Units | — | — | — | 6,154 | 3,965 | |||||||||||||||
Preference Interest and Junior Preference Unit distributions | — | 9 | 15 | 441 | 2,002 | |||||||||||||||
Premium on redemption of Preference Interests | — | — | — | — | 684 | |||||||||||||||
Total combined fixed charges and preferred distributions | $ | 511,167 | $ | 561,770 | $ | 568,544 | $ | 568,181 | $ | 483,099 | ||||||||||
Ratio of earnings before combined fixed charges to total combined fixed charges (1) | — | — | — | — | — | |||||||||||||||
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1) | — | — | — | — | — | |||||||||||||||
(1) | For 2010, 2009, 2008, 2007 and 2006, the coverage deficiencies approximated $50.0 million, $50.0 million, $116.6 million, $81.0 million and $94.5 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 Preference Units and/or Preference Interests. The Operating Partnership was in compliance with its unsecured public debt covenants for all periods presented. |