EX-12.2 4 d00956exv12w2.htm EX-12.2 COMPUTATION OF RATIO OF EARNINGS Archstone-Smith Operating Trust
 

EXHIBIT 12.2

ARCHSTONE-SMITH OPERATING TRUST
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED UNIT DISTRIBUTIONS

(Dollar amounts in thousands)

(Unaudited)

                                                             
        Nine Months Ended                                        
        September 30,(1)   Twelve Months Ended December 31,
       
 
        2002   2001   2001(1)   2000   1999   1998   1997(2)
       
 
 
 
 
 
 
Earnings from operations
   $ 192,355     $ 115,733     $ 175,397     $ 176,466     $ 169,339     $ 134,571     $ 24,686  
Add interest expense
     145,814       94,995       141,907       145,173       121,494       83,350       61,153  
 
    
     
     
     
     
     
     
 
Earnings as adjusted
   $ 338,169     $ 210,728     $ 317,304     $ 321,639     $ 290,833     $ 217,921     $ 85,839  
 
    
     
     
     
     
     
     
 
Combined fixed charges and Preferred Unit distributions:
                                                        
 
Interest expense
   $ 145,814     $ 94,995     $ 141,907     $ 145,173     $ 121,494     $ 83,350     $ 61,153  
 
Capitalized interest
     17,088       15,091       20,294       24,317       31,912       29,942       17,606  
 
    
     
     
     
     
     
     
 
   
Total fixed charges
     162,902       110,086       162,201       169,490       153,406       113,292       78,759  
 
    
     
     
     
     
     
     
 
 
Preferred Unit distributions
     25,142       15,124       22,277       25,340       23,733       20,938       19,384  
 
    
     
     
     
     
     
     
 
Combined fixed charges and Preferred Unit distributions
   $ 188,044     $ 125,210     $ 184,478     $ 194,830     $ 177,139     $ 134,230     $ 98,143  
 
    
     
     
     
     
     
     
 
Ratio of earnings to combined fixed charges and Preferred Unit distributions
     1.8       1.7       1.7       1.7       1.6       1.6       0.9  
 
    
     
     
     
     
     
     
 

(1)   In determining earnings and fixed charges, information for Charles E. Smith Residential Realty, LP, which merged with the Company on October 31, 2001, was included for the last two months of the year ended December 31, 2001 and the nine months ended September 30, 2002 only.
 
(2)   Earnings from operations for 1997 includes a one-time, non-cash charge of $71.7 million associated with costs incurred in acquiring Archstone-Smith’s REIT and property management companies from Security Capital Group Incorporated. Accordingly, earnings from operations were insufficient to cover combined fixed charges and Preferred Unit dividends by $12.3 million for the year ended December 31, 1997. Excluding the charge, the ratio of earnings to combined fixed charges and Preferred Unit dividends for the year ended December 31, 1997 would be 1.6.