EX-12 2 discops8-kexhibit122011.htm EX-12 Discops 8-K Exhibit 12 2011


Exhibit 12
 
EQUITY RESIDENTIAL
ERP OPERATING LIMITED PARTNERSHIP
 Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarter Ended March 31,
 
Year Ended December 31,
 
 
2012
 
2011
 
2011
 
2010
 
2009
 
2008
 
2007
 
Income (loss) from continuing operations
$
17,389

 
$
(8,913
)
 
$
76,443

 
$
(88,299
)
 
$
(63,220
)
 
$
(111,541
)
 
$
(74,999
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
118,703

 
120,528

 
468,320

 
465,792

 
490,670

 
473,764

 
472,504

 
Amortization of deferred financing costs
2,974

 
3,005

 
17,006

 
10,114

 
12,327

 
9,577

 
9,923

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges and preferred distributions
139,066

 
114,620

 
561,769

 
387,607

 
439,777

 
371,800

 
407,428

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
(3,466
)
 
(3,466
)
 
(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
$
135,600

 
$
111,154

 
$
547,904

 
$
373,239

 
$
425,289

 
$
357,278

 
$
378,041

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
$
118,703

 
$
120,528

 
$
468,320

 
$
465,792

 
$
490,670

 
$
473,764

 
$
472,504

 
Amortization of deferred financing costs
2,974

 
3,005

 
17,006

 
10,114

 
12,327

 
9,577

 
9,923

 
Interest capitalized for real estate and unconsolidated entities under
   development
4,996

 
1,700

 
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
126,673

 
125,233

 
494,434

 
491,682

 
541,441

 
545,399

 
529,055

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
3,466

 
3,466

 
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
$
130,139

 
$
128,699

 
$
508,299

 
$
506,050

 
$
555,929

 
$
559,921

 
$
558,442

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges to total combined
   fixed charges (1)
1.07

 
—

 
1.11

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges and preferred
   distributions to total combined fixed charges and preferred
   distributions (1)
1.07

 
—

 
1.11

 
—

 
—

 
—

 
—


(1) For the quarter ended March 31, 2011 and the years ended December 31, 2010, 2009, 2008 and 2007, the coverage deficiencies approximated $14.1 million, $118.4 million, $116.2 million, $188.1 million and $151.0 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.

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