EX-12.3 10 a07-2853_1ex12d3.htm EX-12.3

Exhibit 12.3

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

 

 

For the Years Ended December 31,

 

 

 

2006

 

2005

 

2004

 

2003

 

2002

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

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

 

$

338,096

 

$

272,186

 

$

185,178

 

$

256,194

 

$

178,168

 

Add: Fixed Charges as calculated below

 

433,609

 

314,865

 

233,877

 

195,823

 

186,110

 

Add: Distributions of earnings of joint ventures

 

13,276

 

6,672

 

5,840

 

2,839

 

5,802

 

Subtract: Capitalized interest

 

(1,917

)

(788

)

—

 

—

 

(70

)

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

 

(1,093

)

(691

)

(225

)

—

 

—

 

Total earnings

 

$

781,971

 

$

592,244

 

$

424,670

 

$

454,856

 

$

370,010

 

Fixed charges:

 

 

 

 

 

 

 

 

 

 

 

Interest expense (1)

 

$

429,807

 

$

313,053

 

$

232,918

 

$

194,999

 

$

185,362

 

Plus: Capitalized interest

 

1,917

 

788

 

—

 

—

 

70

 

Implied interest component on the company’s rent obligations

 

1,885

 

1,024

 

959

 

824

 

678

 

Fixed charges

 

$

433,609

 

$

314,865

 

$

233,877

 

$

195,823

 

$

186,110

 

Preferred dividend requirements

 

42,320

 

42,320

 

51,340

 

36,908

 

36,908

 

Fixed charges and preferred stock dividends

 

$

475,929

 

$

357,185

 

$

285,217

 

$

232,731

 

$

223,018

 

Earnings to fixed charges(2)

 

1.8x 

 

1.9x

 

1.8x

 

2.3x

 

2.0x

 

Earnings to fixed charges and preferred stock dividends(3)

 

1.6x

 

1.7x

 

1.5x

 

2.0x

 

1.7x

 

 

Explanatory Notes:

(1)             For the years ended December 31, 2006, 2005, 2004, 2003 and 2002, interest expense includes $0, $0, $190, $337 and $348, respectively, of interest expense reclassed to discontinued operations.

(2)             The ratio for 2004 gives effect to the CEO, CFO and ACRE Partners compensation charges of $106.9 million and the 8.75% Senior Notes due 2008 redemption charges of $11.5 million. Excluding these charges, the ratio of earnings to fixed charges would have been 2.3x.

(3)             The ratio for 2004 excludes the preferred stock redemption charge of $9.0 million. Excluding this charge, the ratio of earnings to fixed charges and preferred stock dividends would have been 2.0x.