EX-12 3 exhibit12eqr20123.htm EX-12 Exhibit 12 EQR 2012 (3)


Exhibit 12
 
EQUITY RESIDENTIAL
ERP OPERATING LIMITED PARTNERSHIP
 Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31,
 
 
2012
 
2011
 
2010
 
2009
 
2008
 
Income (loss) from continuing operations
$
311,555

 
$
57,794

 
$
(103,108
)
 
$
(80,394
)
 
$
(132,946
)
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
457,666

 
464,277

 
460,748

 
487,841

 
471,639

 
Amortization of deferred financing costs
21,370

 
16,766

 
9,576

 
12,090

 
9,458

 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges and preferred distributions
790,591

 
538,837

 
367,216

 
419,537

 
348,151

 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
(10,355
)
 
(13,865
)
 
(14,368
)
 
(14,479
)
 
(14,507
)
 
Premium on redemption of Preferred Shares/Preference Units
(5,152
)
 
—

 
—

 
—

 
—

 
Preference Interest and Junior Preference Unit distributions
—

 
—

 
—

 
(9
)
 
(15
)
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges
$
775,084

 
$
524,972

 
$
352,848

 
$
405,049

 
$
333,629

 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
$
457,666

 
$
464,277

 
$
460,748

 
$
487,841

 
$
471,639

 
Amortization of deferred financing costs
21,370

 
16,766

 
9,576

 
12,090

 
9,458

 
Interest capitalized for real estate and unconsolidated entities under development
22,509

 
9,108

 
13,008

 
34,859

 
60,072

 
Amortization of deferred financing costs for real estate under development
—

 
—

 
2,768

 
3,585

 
1,986

 
 
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges
501,545

 
490,151

 
486,100

 
538,375

 
543,155

 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
10,355

 
13,865

 
14,368

 
14,479

 
14,507

 
Premium on redemption of Preferred Shares/Preference Units
5,152

 
—

 
—

 
—

 
—

 
Preference Interest and Junior Preference Unit distributions
—

 
—

 
—

 
9

 
15

 
 
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges and preferred distributions
$
517,052

 
$
504,016

 
$
500,468

 
$
552,863

 
$
557,677

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges to total combined fixed charges (1)
1.55

 
1.07

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
Ratio of earnings before combined fixed charges and preferred distributions to total
     combined fixed charges and preferred distributions (1)
1.53

 
1.07

 
—

 
—

 
—


(1) For 2010, 2009 and 2008, the coverage deficiencies approximated $133.3 million, $133.3 million and $209.5 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.