EX-12 3 a06-21594_1ex12.htm EX-12

Exhibit 12

EQUITY RESIDENTIAL
Computation of Ratio of Earnings to Combined Fixed Charges

 

 

Nine Months Ended September 30,

 

Year Ended December 31,

 

 

 

2006

 

2005

 

2005

 

2004

 

2003

 

2002

 

2001

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations,
net of minority interests

 

$

88,969

 

$

118,714

 

$

149,491

 

$

92,145

 

$

102,086

 

$

109,146

 

$

163,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

319,236

 

266,063

 

363,756

 

309,150

 

294,490

 

289,851

 

293,975

 

Amortization of deferred financing
costs

 

6,419

 

4,832

 

6,514

 

5,825

 

5,280

 

5,292

 

4,597

 

Allocation to Minority Interests:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Partnership, net

 

3,891

 

5,509

 

6,953

 

2,876

 

455

 

2,704

 

6,356

 

Preference Interests and Junior
Preference Units

 

1,779

 

6,442

 

7,606

 

19,490

 

20,536

 

20,536

 

18,615

 

Premium on redemption of
Preference Interests

 

684

 

4,134

 

4,134

 

1,117

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed
charges and preferred
distributions

 

420,978

 

405,694

 

538,454

 

430,603

 

422,847

 

427,529

 

487,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

(29,682

)

(39,004

)

(49,642

)

(53,746

)

(76,435

)

(76,615

)

(87,504

)

Premium on redemption of
Preferred Shares

 

(3,941

)

(4,316

)

(4,359

)

—

 

(20,237

)

—

 

(5,324

)

Preference Interest and Junior
Preference Unit distributions

 

(1,779

)

(6,442

)

(7,606

)

(19,490

)

(20,536

)

(20,536

)

(18,615

)

Premium on redemption of
Preference Interests

 

(684

)

(4,134

)

(4,134

)

(1,117

)

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined
fixed charges

 

$

384,892

 

$

351,798

 

$

472,713

 

$

356,250

 

$

305,639

 

$

330,378

 

$

376,046

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

$

319,236

 

$

266,063

 

$

363,756

 

$

309,150

 

$

294,490

 

$

289,851

 

$

293,975

 

Amortization of deferred
financing costs

 

6,419

 

4,832

 

6,514

 

5,825

 

5,280

 

5,292

 

4,597

 

Interest capitalized for real estate
and unconsolidated entities
under development

 

13,176

 

9,105

 

13,701

 

13,969

 

20,647

 

27,167

 

28,174

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges

 

338,831

 

280,000

 

383,971

 

328,944

 

320,417

 

322,310

 

326,746

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share distributions

 

29,682

 

39,004

 

49,642

 

53,746

 

76,435

 

76,615

 

87,504

 

Premium on redemption of
Preferred Shares

 

3,941

 

4,316

 

4,359

 

—

 

20,237

 

—

 

5,324

 

Preference Interest and Junior
Preference Unit distributions

 

1,779

 

6,442

 

7,606

 

19,490

 

20,536

 

20,536

 

18,615

 

Premium on redemption of
Preference Interests

 

684

 

4,134

 

4,134

 

1,117

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges and
preferred distributions

 

$

374,917

 

$

333,896

 

$

449,712

 

$

403,297

 

$

437,625

 

$

419,461

 

$

438,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.14

 

1.26

 

1.23

 

1.08

 

—

 

1.03

 

1.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.12

 

1.22

 

1.20

 

1.07

 

—

 

1.02

 

1.11

 

(1)        For 2003, the coverage deficiencies on both ratios approximated $14.8 million. All ratios have been reduced due to the disposition of properties and the reclassification of the Lexford Housing Division to held for sale, both of which resulted in the inclusion of those properties in discontinued operations for all periods presented. For 2003, the ratios have been further reduced due to the one-time $20.2 million premium on the redemption of the Series G Preferred Shares.