EX-12.1 2 a13-8300_1ex12d1.htm EX-12.1

EXHIBIT 12.1

 

ALEXANDRIA REAL ESTATE EQUITIES, INC.

COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES

COMPUTATION OF CONSOLIDATED RATIO OF EARNINGS TO COMBINED FIXED

CHARGES AND PREFERRED STOCK DIVIDENDS

(in thousands, except ratios)

 

 

 

Three Months
Ended March 31,

 

Year Ended December 31, (a)

 

 

 

2013

 

2012

 

2011

 

2010

 

2009

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before noncontrolling interests

 

$

29,423

 

$

94,932

(b)

$

119,902

(b)

$

123,510

(b)

$

121,849

 

$

87,869

 

Add: Interest expense

 

18,020

 

69,181

 

61,938

 

66,341

 

77,165

 

79,125

 

Subtract: Noncontrolling interests in income of subsidiaries that have not incurred fixed charges

 

(250

)

(955

)

(1,323

)

(1,156

)

(1,217

)

(1,304

)

Earnings available for fixed charges (c)

 

$

47,193

 

$

163,158

 

$

180,517

 

$

188,695

 

$

197,797

 

$

165,690

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest incurred

 

$

31,926

 

$

131,423

 

$

120,615

 

$

132,345

 

$

148,207

 

$

151,339

 

Total fixed charges

 

31,926

 

131,423

 

120,615

 

132,345

 

148,207

 

151,339

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock dividends

 

6,471

 

27,328

 

28,357

 

28,357

 

28,357

 

24,225

 

Preferred stock redemption charge

 

–

 

5,978

 

–

 

–

 

–

 

–

 

Total combined fixed charges and preferred stock dividends

 

$

38,397

 

$

164,729

 

$

148,972

 

$

160,702

 

$

176,564

 

$

175,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated ratio of earnings to fixed charges

 

1.48

 

1.24

(d)

1.50

(e)

1.43

(f)

1.33

 

1.09

(g)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated ratio of earnings to combined fixed charges and preferred stock dividends

 

1.23

 

0.99

(d)

1.21

(e)

1.17

(f)

1.12

 

0.94

(g)

 

(a)

Amounts disclosed for prior periods have been reclassified to conform to the current period presentation related to discontinued operations.

(b)

Income from continuing operations before noncontrolling interests for the years ended December 31, 2012, 2011, and 2010, includes the gain on sales of land parcels of approximately $1.9 million, $46,000, and $59.4 million, respectively. Pursuant to the presentation and disclosure literature on gains/losses on sales or disposals by real estate investment trusts (“REITs”) and earnings per share required by the Securities and Exchange Commission and the Financial Accounting Standards Board, gains or losses on sales or disposals by a REIT that do not qualify as discontinued operations are classified below income (loss) from discontinued operations in the statements of income and are included in the numerator for the computation of earnings per share for income from continuing operations. The land parcels we sold during the years ended December 31, 2012, 2011, and 2010, did not meet the criteria for classification as discontinued operations because the parcels did not have any significant operations prior to disposition. Accordingly, for the years ended December 31, 2012, 2011, and 2010, we classified the $1.9 million, $46,000, and $59.4 million, respectively, gain on sales of land parcels below income (loss) from discontinued operations, net, in the condensed consolidated statements of income, and included the gain in income from continuing operations for the computation of earnings per share.

(c)

For purposes of calculating the consolidated ratio of earnings to fixed charges and consolidated ratio of earnings to combined fixed charges and preferred stock dividends, earnings consist of income from continuing operations before noncontrolling interests and interest expense less noncontrolling interests in income of subsidiaries that have not incurred fixed charges. Fixed charges consist of interest incurred (including amortization of deferred financing costs and capitalized interest).

(d)

Ratios for the year ended December 31, 2012, include the effect of losses on early extinguishment of debt aggregating $2.2 million, a preferred stock redemption charge of $6.0 million, impairment of land parcel of $2.1 million, and impairment of real estate of $11.4 million. Excluding the impact of losses on early extinguishment of debt, the preferred stock redemption charge, impairment of land parcel, and the impairment of real estate, the consolidated ratio of earnings to fixed charges and consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2012, were 1.36 and 1.09, respectively.

(e)

Ratios for the year ended December 31, 2011, include the effect of loss on early extinguishment of debt aggregating $6.5 million and impairment of real estate of approximately $1.0 million. Excluding the impact of loss on early extinguishment of debt and the impairment of real estate, the consolidated ratio of earnings to fixed charges and consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2011, were 1.56 and 1.26, respectively.

(f)

Ratios for the year ended December 31, 2010, include the effect of loss on early extinguishment of debt aggregating $45.2 million. Excluding the impact of loss on early extinguishment of debt, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2010, were 1.77 and 1.46, respectively.

(g)

Ratios for the year ended December 31, 2008, include the effect of impairment of real estate aggregating $13.3 million for other-than-temporary declines in the fair value of certain investments. Excluding the impact of impairment of real estate, the consolidated ratio of earnings to fixed charges and the consolidated ratio of earnings to combined fixed charges and preferred stock dividends for the year ended December 31, 2008, were 1.18 and 1.02, respectively.