EX-12.2 3 exhibit122-123113x10k.htm COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES Exhibit 12.2-12.31.13-10K

EXHIBIT 12.2
EPR PROPERTIES
COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED DIVIDENDS
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
 
2010
 
2009
Earnings:
 
 
 
 
 
 
 
 
 
 
Income before equity in income from joint ventures and other items (1)
 
$
152,193

 
$
140,881

 
$
127,241

 
$
114,793

 
$
32,901

Fixed charges before preferred dividends
 
83,988

 
77,738

 
71,980

 
69,018

 
62,375

Distributions from equity investments
 
985

 
1,046

 
2,848

 
2,482

 
986

Capitalized interest
 
(2,763
)
 
(859
)
 
(498
)
 
(383
)
 
(600
)
 
 
 
 
 
 
 
 
 
 
 
Adjusted Earnings
 
$
234,403

 
$
218,806

 
$
201,571

 
$
185,910

 
$
95,662

 
 
 
 
 
 
 
 
 
 
 
Fixed Charges:
 
 
 
 
 
 
 
 
 
 
Interest expense, net (including amortization of deferred financing fees)
 
$
81,056

 
$
76,656

 
$
71,295

 
$
68,462

 
$
61,579

Interest within rental expense (2)
 
145

 
156

 
154

 
136

 
121

Interest income
 
24

 
67

 
33

 
37

 
75

Capitalized interest
 
2,763

 
859

 
498

 
383

 
600

Preferred dividends
 
23,806

 
24,508

 
28,140

 
30,206

 
30,206

 
 
 
 
 
 
 
 
 
 
 
Combined Fixed Charges and Preferred Dividends
 
$
107,794

 
$
102,246

 
$
100,120

 
$
99,224

 
$
92,581

 
 
 
 
 
 
 
 
 
 
 
Ratio of Earnings to Combined Fixed Charges and Preferred Dividends
 
2.2
x
 
2.1
x
 
2.0
x
 
1.9
x
 
1.0
x
 
 
 
 
 
 
 
 
 
 
 
 
(1)
Earnings before equity in income from joint ventures and other items for the year ended December 31, 2013 includes $6.2 million in costs associated with loan refinancing and a $4.5 million gain on early extinguishment of debt. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2012 includes $3.1 million in impairment charges for properties held and used and $0.6 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2011 includes $2.5 million in impairment charges for properties held and used and $1.9 million in costs associated with loan refinancing. Earnings before equity in income from joint ventures and other items for the year ended December 31, 2010 includes a $0.5 million impairment charge for other assets, $0.7 million in provision for loan losses and $11.4 million in costs associated with loan refinancing.  Earnings before equity in income from joint ventures and other items for the year ended December 31, 2009 includes $71.0 million in provision for loan losses and $0.1 million in costs associated with loan refinancing.
(2)
Interest within rental expense represents one-third of rental expense (the approximate portion of rental expense representing interest).