EX-12.2 7 d433171dex122.htm EX-12.2 Ex-12.2

Exhibit 12.2

Retail Properties of America, Inc.

Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends

 

     Nine
Months
Ended
September
30, 2012		     Year Ended December 31,  
       2011     2010     2009     2008     2007  
     (dollar amounts in thousands)  

Earnings

             

Loss from continuing operations

    $ (28,009 )    $ (76,009 )    $ (100,051 )    $ (99,215 )    $ (656,453 )    $ (6,619 ) 

Equity in loss (income) of unconsolidated joint ventures, net

      5,467        6,437        (2,025 )      11,299        4,939        (96 ) 

Gain on sale of investment properties

      6,652        5,906        —          —          —          —     

Adjustments added:

             

Fixed charges (see below)

      148,446        236,548        260,603        225,618        208,570        196,607   

Distributions on investments in unconsolidated joint ventures

      4,301        2,218        5,721        4,176        5,168        5,070   

Adjustments subtracted:

             

Interest capitalized

      —          (197 )      (286 )      (1,194 )      (7,485 )      (4,438 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings (loss)

    $ 136,857      $ 174,903      $ 163,962      $ 140,684      $ (445,261 )    $ 190,524   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

             

Interest expense

    $ 142,333      $ 225,542      $ 249,480      $ 220,199      $ 197,222      $ 188,976   

Co-venture obligation expense(1)

      3,300        7,167        7,167        597        —          —     

Interest capitalized

      —          197        286        1,194        7,485        4,438   

Estimate of interest within rental expense

      2,813        3,642        3,670        3,628        3,863        3,193   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

    $ 148,446      $ 236,548      $ 260,603      $ 225,618      $ 208,570      $ 196,607   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Preferred dividends

      —          —          —          —          —          —     

Total fixed charges and preferred stock dividends

    $ 148,446      $ 236,548      $ 260,603      $ 225,618      $ 208,570      $ 196,607   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges and preferred stock dividends

      —   (2)      —   (2)      —   (2)      —   (2)      —   (2)      —   (2) 

 

(1) Represents the preferred return and incentive and other compensation with respect to the IW JV 2009, LLC, or IW JV. Retail Properties of America, Inc. redeemed the full amount of the non-controlling interest on April 26, 2012.
(2) The ratio was less than 1:1 for the nine months ended September 30, 2012 and the years ended December 31, 2011, December 31, 2010, December 31, 2009, December 31, 2008 and December 31, 2007 as earnings were inadequate to cover fixed charges by deficiencies of approximately $11.6 million, $61.6 million, $96.6 million, $84.9 million, $653.8 million and $6.1 million, respectively.