EX-12.1 5 d72592dex121.htm EX-12.1 EX-12.1

Exhibit 12.1

RETAIL PROPERTIES OF AMERICA, INC.

Computation of Ratio of Earnings to Fixed Charges

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

 

    Nine
Months		                                
    Ended     Year Ended December 31,  
    9/30/2015     2014     2013     2012     2011     2010  

Earnings

            

Income (loss) from continuing operations

   $ 8,875      $ 597      $ (42,855 )    $ (14,368 )    $ (71,492 )    $ (85,683 ) 

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

     —          2,088        1,246        6,307        6,437        (2,025 ) 

Gain on sales of investment properties, net

     113,214        42,196        5,806        7,843        5,906        —     

Adjustments added:

            

Fixed charges (see below)

     113,636        137,944        150,685        178,306        214,920        234,890   

Distributions on investments in unconsolidated joint ventures

     —          1,360        7,105        6,168        2,218        5,721   

Adjustments subtracted:

            

Interest capitalized

     —          —          —          —          (197 )      (286 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total earnings

   $ 235,725      $ 184,185      $ 121,987      $ 184,256      $ 157,792      $ 152,617   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Fixed charges:

            

Interest expense

   $ 110,610      $ 133,835      $ 146,805      $ 171,295      $ 203,914      $ 223,767   

Co-venture obligation expense (1)

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

Interest capitalized

     —          —          —          —          197        286   

Estimate of interest within rental expense

     3,026        4,109        3,880        3,711        3,642        3,670   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges

   $ 113,636      $ 137,944      $ 150,685      $ 178,306      $ 214,920      $ 234,890   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Preferred dividends

     7,087        9,450        9,450        263        —          —     
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total fixed charges and preferred stock dividends

   $ 120,723      $ 147,394      $ 160,135      $ 178,569      $ 214,920      $ 234,890   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to fixed charges

     2.07        1.34        —   (2)      1.03        —   (2)      —   (2) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratio of earnings to combined fixed charges and preferred stock dividends

     1.95        1.25        —   (3)      1.03        —   (3)      —   (3) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

(1)    Represents the preferred return and incentive and other compensation with respect to the IW JV 2009, LLC, or IW JV. The Company redeemed the full amount of the non-controlling interest on April 26, 2012.

        

(2)    The ratio was less than 1:1 for the years ended December 31, 2013, 2011 and 2010 as earnings were inadequate to cover fixed charges by deficiencies of approximately $28.7 million, $57.1 million and $82.3 million, respectively.

        

(3)    The ratio was less than 1:1 for the years ended December 31, 2013, 2011 and 2010 as earnings were inadequate to cover fixed charges by deficiencies of approximately $38.1 million, $57.1 million and $82.3 million, respectively.