EX-12.1 6 iret-20160430ex121bd718b.htm EX-12.1 iret_Ex12_1

Exhibit 12.1

 

CALCULATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND

EARNINGS TO COMBINED FIXED CHARGES

AND PREFERRED SHARE DISTRIBUTIONS

(Unaudited)

 

The following table sets forth our ratios of earnings to fixed charges and earnings to combined fixed charges and preferred share dividends for the periods indicated. The ratio of earnings to fixed charges was computed by dividing earnings by our fixed charges. The ratio of earnings to combined fixed charges and preferred share dividends was computed by dividing earnings by our combined fixed charges and preferred share dividends. For purposes of calculating these ratios, earnings consist of income from continuing operations plus fixed charges, less (income) loss from non-controlling interests and interest capitalized. Fixed charges consist of interest charges on all indebtedness, whether expensed or capitalized, the interest component of rental expense and the amortization of debt discounts and issue costs, whether expensed or capitalized. Preferred share dividends consist of dividends on our Series A and Series B preferred shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except ratios)

 

 

 

Fiscal Year Ended April 30, 

 

 

 
2016

 
2015

 
2014

 
2013

 
2012

 

Earnings

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Income (loss) from continuing operations

 

$
19,280

 

$
19,506

 

$
5,898

 

$
12,275

 

$
2,890

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Combined fixed charges and preferred distributions (see below)

 

 
70,595

 

 
75,437

 

 
73,933

 

 
73,657

 

 
68,172

 

Amortization of capitalized interest

 

 
203

 

 
74

 

 
0

 

 
0

 

 
0

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Income) loss noncontrolling interests – consolidated real estate entities

 

 
2,436

 

 
(3,071)

 

 
(910)

 

 
(809)

 

 
(135)

 

Interest capitalized

 

 
(4,907)

 

 
(4,903)

 

 
(2,856)

 

 
(742)

 

 
(571)

 

Preferred distributions

 

 
(11,514)

 

 
(11,514)

 

 
(11,514)

 

 
(9,229)

 

 
(2,372)

 

Total earnings

 

$
76,093

 

$
75,529

 

$
64,551

 

$
75,152

 

$
67,984

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed charges

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expensed

 

$
54,174

 

 
59,020

 

 
59,563

 

 
63,686

 

 
65,229

 

Interest capitalized

 

 
4,907

 

 
4,903

 

 
2,856

 

 
742

 

 
571

 

Total fixed charges

 

$
59,081

 

$
63,923

 

$
62,419

 

$
64,428

 

$
65,800

 

Preferred distributions

 

 
11,514

 

 
11,514

 

 
11,514

 

 
9,229

 

 
2,372

 

Total combined fixed charges and preferred distributions

 

$
70,595

 

$
75,437

 

$
73,933

 

$
73,657

 

$
68,172

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings to fixed charges

 

 
1.29

x

 
1.18

x

 
1.03

x

 
1.17

x

 
1.03

x

Ratio of earnings to combined fixed charges and preferred distributions

 

 
1.08

x

 
1.00

x

 
(1)

 

 
1.02

x

 
1.00

x

 

(1)

Earnings were inadequate to cover combined fixed charges and preferred distributions by $9.4 million. Excluding non-cash asset impairment charges of $7.8 million, the ratio of earnings to combined fixed charges and preferred distributions would have been 0.98x for the fiscal year ended April 30, 2014.