EX-12 2 a07-22557_1ex12.htm EX-12

Exhibit 12

 

ERP OPERATING LIMITED PARTNERSHIP
Computation of Ratio of Earnings to Combined Fixed Charges

 

 

 

Six Months Ended June 30,

 

Year Ended December 31,

 

 

 

2007

 

2006

 

2006

 

2005

 

2004

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

49,199

 

$

49,795

 

$

86,699

 

$

151,743

 

$

96,756

 

$

104,814

 

$

108,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

233,075

 

203,862

 

420,894

 

355,262

 

299,340

 

282,358

 

276,898

 

Amortization of deferred financing costs

 

6,162

 

4,383

 

8,140

 

6,391

 

5,711

 

5,096

 

5,176

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges and preferred distributions

 

288,436

 

258,040

 

515,733

 

513,396

 

401,807

 

392,268

 

390,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preference Unit distributions

 

(14,840

)

(20,168

)

(37,113

)

(49,642

)

(53,746

)

(76,435

)

(76,615

)

Premium on redemption of Preference Units

 

—

 

—

 

(3,965

)

(4,359

)

—

 

(20,237

)

—

 

Preference Interest and Junior Preference Unit distributions

 

(434

)

(1,556

)

(2,002

)

(7,606

)

(19,490

)

(20,536

)

(20,536

)

Premium on redemption of Preference Interests

 

—

 

(683

)

(684

)

(4,134

)

(1,117

)

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings before combined fixed charges

 

$

273,162

 

$

235,633

 

$

471,969

 

$

447,655

 

$

327,454

 

$

275,060

 

$

293,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense incurred, net

 

$

233,075

 

$

203,862

 

$

420,894

 

$

355,262

 

$

299,340

 

$

282,358

 

$

276,898

 

Amortization of deferred financing costs

 

6,162

 

4,383

 

8,140

 

6,391

 

5,711

 

5,096

 

5,176

 

Interest capitalized for real estate and unconsolidated entities under development

 

17,894

 

7,780

 

20,734

 

13,701

 

13,969

 

20,647

 

27,167

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total combined fixed charges

 

257,131

 

216,025

 

449,768

 

375,354

 

319,020

 

308,101

 

309,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preference Unit distributions

 

14,840

 

20,168

 

37,113

 

49,642

 

53,746

 

76,435

 

76,615

 

Premium on redemption of Preference Units

 

—

 

—

 

3,965

 

4,359

 

—

 

20,237

 

—

 

Preference Interest and Junior Preference Unit distributions

 

434

 

1,556

 

2,002

 

7,606

 

19,490

 

20,536

 

20,536

 

Premium on redemption of Preference Interests

 

—

 

683

 

684

 

4,134

 

1,117

 

—

 

—

 

Total combined fixed charges and preferred distributions

 

$

272,405

 

$

238,432

 

$

493,532

 

$

441,095

 

$

393,373

 

$

425,309

 

$

406,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.06

 

1.09

 

1.05

 

1.19

 

1.03

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.06

 

1.08

 

1.04

 

1.16

 

1.02

 

—

 

—

 

 

(1) For 2003 and 2002, the coverage deficiencies on both ratios approximated $33.0 million and $16.1 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations 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 Preference Units.

 

5