EX-99.4 6 a06-19525_1ex99d4.htm EX-99

Exhibit 99.4

Computation of Ratio of Earning to fixed charges and Earnings to fixed charges and prefered stock dividends

 

 

For the Years Ended December 31,

 

 

 

2005

 

2004

 

2003

 

2002

 

2001

  

 

 

(In thousands, except ratios)

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

Net income before equity in (loss) earnings from joint ventures and unconsolidated subsidiaries, minority interest and other items

 

$

273,783

 

$

189,341

 

$

260,832

 

$

183,118

 

$

191,686

 

Add: Fixed Charges as calculated below

 

314,865

 

233,877

 

195,823

 

186,109

 

171,703

 

Add: Distributions of earnings of joint ventures

 

6,672

 

5,840

 

2,839

 

5,802

 

4,802

 

Subtract: Capitalized interest

 

(788

)

—

 

—

 

(70

)

(1,010

)

Subtract: Minority interest (expense) in pre-tax income of subsidiaries that have not incurred fixed charges

 

691

 

225

 

—

 

—

 

—

 

Total earnings

 

$

595,223

 

$

429,283

 

$

459,494

 

$

374,959

 

$

367,181

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense (before carveouts)

 

$

313,053

 

$

232,918

 

$

194,999

 

$

185,361

 

$

170,121

 

Plus: Capitalized interest

 

788

 

—

 

—

 

70

 

1,010

 

Implied interest component on the company's rent obligations

 

1,024

 

959

 

824

 

678

 

572

 

Fixed charges

 

$

314,865

 

$

233,877

 

$

195,823

 

$

186,109

 

$

171,703

 

Preferred dividend requirements

 

42,320

 

51,340

 

36,908

 

36,908

 

36,908

 

Fixed charges and prefered stock dividends

 

$

357,185

 

$

285,217

 

$

232,731

 

$

223,017

 

$

208,611

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings to fixed charges and preferred stock dividends (1)

 

1.67x

(2)

1.51x

(3)

1.97x

 

1.68x

 

1.76x

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings to fixed charges (1)

 

1.89x

(2)

1.84x

(3)

2.35x

 

2.01x

 

2.14x

 

 

Explanatory Notes:

(1)    For the purposes of calculating these ratios, “earnings” consist of income from continuing operations before adjustment for minority interest in consolidated subsidiaries, or income or loss from equity investees, income taxes and cumulative effect of change in accounting principle plus “fixed charges” and certain other adjustments. “Fixed charges” consist of interest incurred on all indebtedness related to continuing and discontinued operations (including amortization of original issue discount) and a reasonable approximation of the interest factor from our rent obligations in the periods presented.

(2)    Includes the effect of STARs asset-backed notes redemption charge of $44.3 million. Excluding this charge, the ratio of earnings to fixed charges and preferred stock dividends and the ratio of earnings to fixed charges would have been 1.8x and 2.0x respectively.

(3)    Includes the effect of chief executive officer, chief financial officer and ACRE Partners compensation charges of $106.9 million, 8.75% Senior Notes due 2008 redemption charge of $11.5 million and, for the ratio of earnings to fixed charges and preferred dividends, preferred stock redemption charge of $9.0 million. Excluding these charges, the ratio of earnings to fixed charges and preferred stock dividends and the ratio of earnings to fixed charges would have been 2.0x and 2.4x, respectively.