EX-12 2 eqr-ex12_13.htm EX-12 eqr-ex12_13.htm

Exhibit 12

EQUITY RESIDENTIAL

ERP OPERATING LIMITED PARTNERSHIP

Computation of Ratio of Earnings to Combined Fixed Charges

($ in thousands)

 

 

 

Year Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

 

2014

 

 

2013

 

Income (loss) from continuing operations

 

$

628,381

 

 

$

4,479,586

 

 

$

907,621

 

 

$

657,101

 

 

$

(168,174

)

Interest expense incurred, net

 

 

383,890

 

 

 

482,246

 

 

 

444,487

 

 

 

457,460

 

 

 

587,141

 

Amortization of deferred financing costs

 

 

8,526

 

 

 

12,633

 

 

 

10,801

 

 

 

11,088

 

 

 

22,197

 

Earnings before combined fixed charges and preferred distributions

 

 

1,020,797

 

 

 

4,974,465

 

 

 

1,362,909

 

 

 

1,125,649

 

 

 

441,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share/Preference Unit distributions

 

 

(3,091

)

 

 

(3,091

)

 

 

(3,357

)

 

 

(4,145

)

 

 

(4,145

)

Premium on redemption of Preferred Shares/Preference Units

 

 

—

 

 

 

—

 

 

 

(3,486

)

 

 

—

 

 

 

—

 

Earnings before combined fixed charges

 

$

1,017,706

 

 

$

4,971,374

 

 

$

1,356,066

 

 

$

1,121,504

 

 

$

437,019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

$

383,890

 

 

$

482,246

 

 

$

444,487

 

 

$

457,460

 

 

$

587,141

 

Amortization of deferred financing costs

 

 

8,526

 

 

 

12,633

 

 

 

10,801

 

 

 

11,088

 

 

 

22,197

 

Interest capitalized for real estate and unconsolidated entities under development

 

 

26,290

 

 

 

51,451

 

 

 

59,885

 

 

 

52,782

 

 

 

47,321

 

Amortization of deferred financing costs for real estate under development

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

152

 

Total combined fixed charges

 

 

418,706

 

 

 

546,330

 

 

 

515,173

 

 

 

521,330

 

 

 

656,811

 

Preferred Share/Preference Unit distributions

 

 

3,091

 

 

 

3,091

 

 

 

3,357

 

 

 

4,145

 

 

 

4,145

 

Premium on redemption of Preferred Shares/Preference Units

 

 

—

 

 

 

—

 

 

 

3,486

 

 

 

—

 

 

 

—

 

Total combined fixed charges and preferred distributions

 

$

421,797

 

 

$

549,421

 

 

$

522,016

 

 

$

525,475

 

 

$

660,956

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ratio of earnings before combined fixed charges to total combined fixed charges (1) (2)

 

 

2.43

 

 

 

9.10

 

 

 

2.63

 

 

 

2.15

 

 

 

—

 

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

    combined fixed charges and preferred distributions (1) (2)

 

 

2.42

 

 

 

9.05

 

 

 

2.61

 

 

 

2.14

 

 

 

—

 

 

Note: The Company was in compliance with its unsecured public debt covenants for all periods presented.

(1)

For the years ended December 31, 2017, 2016, 2015 and 2014, the ratios have been increased primarily due to gains on the sales of real estate properties that were not included in discontinued operations as a result of the Company's adoption of the accounting standard effective January 1, 2014.

(2)

For the year ended December 31, 2013, the coverage deficiency approximated $219.8 million.  The 2013 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 premiums on the redemption of Preferred Shares/Preference Units.