Erp Operating LTD Partnership 10-K 2017 FY Annual report

Exhibit 12

EQUITY RESIDENTIAL

ERP OPERATING LIMITED PARTNERSHIP

Computation of Ratio of Earnings to Combined Fixed Charges

($ in thousands)

	Year Ended December 31,
	2017			2016			2015			2014			2013
Income (loss) from continuing operations	$	628,381		$	4,479,586		$	907,621		$	657,101		$	(168,174	)
Interest expense incurred, net		383,890			482,246			444,487			457,460			587,141
Amortization of deferred financing costs		8,526			12,633			10,801			11,088			22,197
Earnings before combined fixed charges and preferred distributions		1,020,797			4,974,465			1,362,909			1,125,649			441,164
Preferred Share/Preference Unit distributions		(3,091	)		(3,091	)		(3,357	)		(4,145	)		(4,145	)
Premium on redemption of Preferred Shares/Preference Units		—			—			(3,486	)		—			—
Earnings before combined fixed charges	$	1,017,706		$	4,971,374		$	1,356,066		$	1,121,504		$	437,019
Interest expense incurred, net	$	383,890		$	482,246		$	444,487		$	457,460		$	587,141
Amortization of deferred financing costs		8,526			12,633			10,801			11,088			22,197
Interest capitalized for real estate and unconsolidated entities under development		26,290			51,451			59,885			52,782			47,321
Amortization of deferred financing costs for real estate under development		—			—			—			—			152
Total combined fixed charges		418,706			546,330			515,173			521,330			656,811
Preferred Share/Preference Unit distributions		3,091			3,091			3,357			4,145			4,145
Premium on redemption of Preferred Shares/Preference Units		—			—			3,486			—			—
Total combined fixed charges and preferred distributions	$	421,797		$	549,421		$	522,016		$	525,475		$	660,956
Ratio of earnings before combined fixed charges to total combined fixed charges (1) (2)		2.43			9.10			2.63			2.15			—
Ratio of earnings before combined fixed charges and preferred distributions to total     combined fixed charges and preferred distributions (1) (2)		2.42			9.05			2.61			2.14			—

Note: The Company was in compliance with its unsecured public debt covenants for all periods presented.

(1) For the years ended December 31, 2017, 2016, 2015 and 2014, the ratios have been increased primarily due to gains on the sales of real estate properties that were not included in discontinued operations as a result of the Company's adoption of the accounting standard effective January 1, 2014.

(2) For the year ended December 31, 2013, the coverage deficiency approximated $219.8 million.  The 2013 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 premiums on the redemption of Preferred Shares/Preference Units.