Exhibit 12
ERP OPERATING LIMITED PARTNERSHIP
Computation of Ratio of Earnings to Combined Fixed Charges
| | Quarter Ended March 31, | | Year Ended December 31, | |
| | 2008 | | 2007 | | 2007 | | 2006 | | 2005 | | 2004 | | 2003 | |
| | | | | | | | | | | | | | | | | | | | | | |
Income from continuing operations | | $ | 27,546 | | $ | 9,071 | | $ | 90,004 | | $ | 47,580 | | $ | 114,343 | | $ | 56,802 | | $ | 64,984 | |
| | | | | | | | | | | | | | | |
Interest expense incurred, net | | 117,247 | | 110,656 | | 483,670 | | 418,609 | | 352,776 | | 297,261 | | 278,817 | |
Amortization of deferred financing costs | | 2,161 | | 2,221 | | 10,139 | | 8,095 | | 6,356 | | 5,694 | | 5,086 | |
| | | | | | | | | | | | | | | |
Earnings before combined fixed charges and preferred distributions | | 146,954 | | 121,948 | | 583,813 | | 474,284 | | 473,475 | | 359,757 | | 348,887 | |
| | | | | | | | | | | | | | | |
Preference Unit distributions | | (3,633 | ) | (7,424 | ) | (22,792 | ) | (37,113 | ) | (49,642 | ) | (53,746 | ) | (76,435 | ) |
Premium on redemption of Preference Units | | — | | — | | (6,154 | ) | (3,965 | ) | (4,359 | ) | — | | (20,237 | ) |
Preference Interest and Junior Preference Unit distributions | | (4 | ) | (223 | ) | (441 | ) | (2,002 | ) | (7,606 | ) | (19,490 | ) | (20,536 | ) |
Premium on redemption of Preference Interests | | — | | — | | — | | (684 | ) | (4,134 | ) | (1,117 | ) | — | |
| | | | | | | | | | | | | | | |
Earnings before combined fixed charges | | $ | 143,317 | | $ | 114,301 | | $ | 554,426 | | $ | 430,520 | | $ | 407,734 | | $ | 285,404 | | $ | 231,679 | |
| | | | | | | | | | | | | | | |
Interest expense incurred, net | | $ | 117,247 | | $ | 110,656 | | $ | 483,670 | | $ | 418,609 | | $ | 352,776 | | $ | 297,261 | | $ | 278,817 | |
Amortization of deferred financing costs | | 2,161 | | 2,221 | | 10,139 | | 8,095 | | 6,356 | | 5,694 | | 5,086 | |
Interest capitalized for real estate and unconsolidated entities under development | | 14,714 | | 7,866 | | 45,107 | | 20,734 | | 13,701 | | 13,969 | | 20,647 | |
| | | | | | | | | | | | | | | |
Total combined fixed charges | | 134,122 | | 120,743 | | 538,916 | | 447,438 | | 372,833 | | 316,924 | | 304,550 | |
| | | | | | | | | | | | | | | |
Preference Unit distributions | | 3,633 | | 7,424 | | 22,792 | | 37,113 | | 49,642 | | 53,746 | | 76,435 | |
Premium on redemption of Preference Units | | — | | — | | 6,154 | | 3,965 | | 4,359 | | — | | 20,237 | |
Preference Interest and Junior Preference Unit distributions | | 4 | | 223 | | 441 | | 2,002 | | 7,606 | | 19,490 | | 20,536 | |
Premium on redemption of Preference Interests | | — | | — | | — | | 684 | | 4,134 | | 1,117 | | — | |
| | | | | | | | | | | | | | | |
Total combined fixed charges and preferred distributions | | $ | 137,759 | | $ | 128,390 | | $ | 568,303 | | $ | 491,202 | | $ | 438,574 | | $ | 391,277 | | $ | 421,758 | |
| | | | | | | | | | | | | | | |
Ratio of earnings before combined fixed charges to total combined fixed
charges (1) | | 1.07 | | — | | 1.03 | | — | | 1.09 | | — | | — | |
| | | | | | | | | | | | | | | |
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1) | | 1.07 | | — | | 1.03 | | — | | 1.08 | | — | | — | |
(1) For the quarter ended March 31, 2007, the coverage deficiencies on both ratios approximated $6.4 million. For the years ended December 31, 2006, 2004 and 2003, the coverage deficiencies on both ratios approximated $16.9 million, $31.5 million and $72.9 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations for all periods presented. For all years presented, the ratios have been further reduced due to non-cash depreciation expense 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 years presented.
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