EX-12 2 c64527exv12.htm EX-12 exv12
Exhibit 12
EQUITY RESIDENTIAL
Computation of Ratio of Earnings to Combined Fixed Charges
($ in thousands)
                                                         
    Quarter Ended March 31,     Year Ended December 31,  
    2011     2010     2010     2009     2008     2007     2006  
Income (loss) from continuing operations
   $ 7,727     $ (9,407 )   $ (29,035 )   $ (5,959 )   $ (49,581 )   $ (12,873 )   $ (38,127 )
Interest expense incurred, net
     121,376       114,111       470,551       496,146       481,770       481,117       409,583  
Amortization of deferred financing costs
     3,023       2,996       10,172       12,545       9,626       9,973       7,976  
 
                                          
Earnings before combined fixed charges and preferred distributions
     132,126       107,700       451,688       502,732       441,815       478,217       379,432  
Preferred Share distributions
     (3,466 )     (3,620 )     (14,368 )     (14,479 )     (14,507 )     (22,792 )     (37,113 )
Premium on redemption of Preferred Shares
     —       —       —       —       —       (6,154 )     (3,965 )
Preference Interest and Junior Preference Unit distributions
     —       —       —       (9 )     (15 )     (441 )     (2,002 )
Premium on redemption of Preference Interests
     —       —       —       —       —       —       (684 )
 
                                          
Earnings before combined fixed charges
   $ 128,660     $ 104,080     $ 437,320     $ 488,244     $ 427,293     $ 448,830     $ 335,668  
 
                                          
 
                                                        
Interest expense incurred, net
   $ 121,376     $ 114,111     $ 470,551     $ 496,146     $ 481,770     $ 481,117     $ 409,583  
Amortization of deferred financing costs
     3,023       2,996       10,172       12,545       9,626       9,973       7,976  
Interest capitalized for real estate and unconsolidated entities under development
     1,700       4,365       13,008       34,859       60,072       45,107       20,734  
Amortization of deferred financing costs for real estate under development
     —       600       2,768       3,585       1,986       1,521       46  
 
                                          
Total combined fixed charges
     126,099       122,072       496,499       547,135       553,454       537,718       438,339  
Preferred Share distributions
     3,466       3,620       14,368       14,479       14,507       22,792       37,113  
Premium on redemption of Preferred Shares
     —       —       —       —       —       6,154       3,965  
Preference Interest and Junior Preference Unit distributions
     —       —       —       9       15       441       2,002  
Premium on redemption of Preference Interests
     —       —       —       —       —       —       684  
 
                                          
Total combined fixed charges and preferred distributions
   $ 129,565     $ 125,692     $ 510,867     $ 561,623     $ 567,976     $ 567,105     $ 482,103  
 
                                          
 
                                                        
Ratio of earnings before combined fixed charges to total combined fixed charges (1)
     1.02       —       —       —       —       —       —  
 
                                          
 
                                                        
Ratio of earnings before combined fixed charges and preferred distributions to total combined fixed charges and preferred distributions (1)
     1.02       —       —       —       —       —       —  
 
                                          
 
(1)   For the quarter ended March 31, 2010 and the years ended December 31, 2010, 2009, 2008, 2007 and 2006, the coverage deficiencies approximated $18.0 million, $59.2 million, $58.9 million, $126.2 million, $88.9 million and $102.7 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 and/or Preference Interests. The Company was in compliance with its unsecured public debt covenants for all periods presented.

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