EX-12 2 discops8-kexhibit1220121.htm EX-12 Discops 8-K Exhibit 12 2012 (1)


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,
 
 
2013
 
2012
 
2012
 
2011
 
2010
 
2009
 
2008
 
(Loss) income from continuing operations
$
(153,352
)
 
$
(13,426
)
 
$
211,055

 
$
(24,826
)
 
$
(164,135
)
 
$
(143,578
)
 
$
(197,557
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
195,685

 
118,011

 
456,763

 
461,754

 
457,613

 
484,106

 
467,213

 
Amortization of deferred financing costs
7,023

 
2,934

 
21,320

 
16,651

 
9,453

 
11,925

 
9,309

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings before combined fixed charges and preferred distributions
49,356

 
107,519

 
689,138

 
453,579

 
302,931

 
352,453

 
278,965

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
(1,036
)
 
(3,466
)
 
(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
$
48,320

 
$
104,053

 
$
673,631

 
$
439,714

 
$
288,563

 
$
337,965

 
$
264,443

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense incurred, net
$
195,685

 
$
118,011

 
$
456,763

 
$
461,754

 
$
457,613

 
$
484,106

 
$
467,213

 
Amortization of deferred financing costs
7,023

 
2,934

 
21,320

 
16,651

 
9,453

 
11,925

 
9,309

 
Interest capitalized for real estate and unconsolidated entities under
   development
8,413

 
4,996

 
22,509

 
9,108

 
13,008

 
34,859

 
60,072

 
Amortization of deferred financing costs for real estate under
   development
1

 
—

 
—

 
—

 
2,768

 
3,585

 
1,986

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total combined fixed charges
211,122

 
125,941

 
500,592

 
487,513

 
482,842

 
534,475

 
538,580

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Share/Preference Unit distributions
1,036

 
3,466

 
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
$
212,158

 
$
129,407

 
$
516,099

 
$
501,378

 
$
497,210

 
$
548,963

 
$
553,102

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

 
—

 
1.35

 
—

 
—

 
—

 
—

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

 
—

 
1.34

 
—

 
—

 
—

 
—


(1) For the quarters ended March 31, 2013 and 2012 and the years ended December 31, 2011, 2010, 2009 and 2008, the coverage deficiencies approximated $162.8 million, $21.9 million, $47.8 million, $194.3 million, $196.5 million and $274.1 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.

5