EX-12 3 exhibit12eqr2011.htm EX-12 Exhibit 12 EQR 2011


Exhibit 12
 
EQUITY RESIDENTIAL
ERP OPERATING LIMITED PARTNERSHIP
 Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2011
 
2010
 
2009
 
2008
 
2007
 
Income (loss) from continuing operations
$
83,998

 
$
(83,426
)
 
$
(57,707
)
 
$
(105,505
)
 
$
(70,073
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
469,237

 
468,306

 
493,278

 
476,457

 
475,283

 
Amortization of deferred financing costs
17,006

 
10,114

 
12,327

 
9,577

 
9,923

 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges and preferred distributions
570,241

 
394,994

 
447,898

 
380,529

 
415,133

 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
(13,865
)
 
(14,368
)
 
(14,479
)
 
(14,507
)
 
(22,792
)
 
Premium on redemption of Preferred Shares/Preference Units
—

 
—

 
—

 
—

 
(6,154
)
 
Preference Interest and Junior Preference Unit distributions
—

 
—

 
(9
)
 
(15
)
 
(441
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges
$
556,376

 
$
380,626

 
$
433,410

 
$
366,007

 
$
385,746

 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
$
469,237

 
$
468,306

 
$
493,278

 
$
476,457

 
$
475,283

 
Amortization of deferred financing costs
17,006

 
10,114

 
12,327

 
9,577

 
9,923

 
Interest capitalized for real estate and unconsolidated entities under development
9,108

 
13,008

 
34,859

 
60,072

 
45,107

 
Amortization of deferred financing costs for real estate under development
—

 
2,768

 
3,585

 
1,986

 
1,521

 
 
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges
495,351

 
494,196

 
544,049

 
548,092

 
531,834

 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
13,865

 
14,368

 
14,479

 
14,507

 
22,792

 
Premium on redemption of Preferred Shares/Preference Units
—

 
—

 
—

 
—

 
6,154

 
Preference Interest and Junior Preference Unit distributions
—

 
—

 
9

 
15

 
441

 
 
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges and preferred distributions
$
509,216

 
$
508,564

 
$
558,537

 
$
562,614

 
$
561,221

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges to total combined fixed charges (1)
1.12

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges and preferred distributions to total
     combined fixed charges and preferred distributions (1)
1.12

 
—

 
—

 
—

 
—


(1) For 2010, 2009, 2008 and 2007, the coverage deficiencies approximated $113.6 million, $110.6 million, $182.1 million and $146.1 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations. The ratios have been further reduced due to non-cash depreciation expense and impairment charges and premiums on the redemption of Preferred Shares/Preference Units. The Company was in compliance with its unsecured public debt covenants for all periods presented.