EX-12
Published on
Exhibit 12
EQUITY RESIDENTIAL
Computation of Ratio of Earnings to Combined Fixed Charges
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Year Ended December 31, |
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2007 |
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2006 |
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2005 |
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2004 |
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2003 |
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Income from continuing operations, net of minority interests |
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$ |
93,006 |
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$ |
51,929 |
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$ |
106,509 |
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$ |
45,035 |
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$ |
54,968 |
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Interest expense incurred, net |
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484,776 |
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419,812 |
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353,674 |
|
297,817 |
|
280,073 |
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Amortization of deferred financing costs |
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10,522 |
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8,120 |
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6,381 |
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5,717 |
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5,094 |
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Allocation to Minority Interests: |
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Operating Partnership, net |
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4,369 |
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784 |
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3,842 |
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(638 |
) |
(3,371 |
) |
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Preference Interests and Junior Preference Units |
|
441 |
|
2,002 |
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7,606 |
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19,490 |
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20,536 |
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Premium on redemption of Preference Interests |
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— |
|
684 |
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4,134 |
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1,117 |
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— |
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Earnings before combined fixed charges |
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593,114 |
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483,331 |
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482,146 |
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368,538 |
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357,300 |
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Preferred Share distributions |
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(22,792 |
) |
(37,113 |
) |
(49,642 |
) |
(53,746 |
) |
(76,435 |
) |
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Premium on redemption of Preferred Shares |
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(6,154 |
) |
(3,965 |
) |
(4,359 |
) |
— |
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(20,237 |
) |
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Preference Interest and Junior Preference Unit distributions |
|
(441 |
) |
(2,002 |
) |
(7,606 |
) |
(19,490 |
) |
(20,536 |
) |
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Premium on redemption of Preference Interests |
|
— |
|
(684 |
) |
(4,134 |
) |
(1,117 |
) |
— |
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Earnings before combined fixed charges |
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$ |
563,727 |
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$ |
439,567 |
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$ |
416,405 |
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$ |
294,185 |
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$ |
240,092 |
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Interest expense incurred, net |
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$ |
484,776 |
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$ |
419,812 |
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$ |
353,674 |
|
$ |
297,817 |
|
$ |
280,073 |
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Amortization of deferred financing costs |
|
10,522 |
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8,120 |
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6,381 |
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5,717 |
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5,094 |
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Interest capitalized for real estate and unconsolidated entities under development |
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45,107 |
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20,734 |
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13,701 |
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13,969 |
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20,647 |
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Total combined fixed charges |
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540,405 |
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448,666 |
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373,756 |
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317,503 |
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305,814 |
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Preferred Share distributions |
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22,792 |
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37,113 |
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49,642 |
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53,746 |
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76,435 |
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Premium on redemption of Preferred Shares |
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6,154 |
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3,965 |
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4,359 |
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— |
|
20,237 |
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Preference Interest and Junior Preference Unit distributions |
|
441 |
|
2,002 |
|
7,606 |
|
19,490 |
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20,536 |
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Premium on redemption of Preference Interests |
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— |
|
684 |
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4,134 |
|
1,117 |
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— |
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Total combined fixed charges and preferred distributions |
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$ |
569,792 |
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$ |
492,430 |
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$ |
439,497 |
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$ |
391,856 |
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$ |
423,022 |
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Ratio of earnings before combined fixed charges to total combined fixed charges (1) |
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1.04 |
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— |
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1.11 |
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— |
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— |
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Ratio of earnings before combined fixed |
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1.04 |
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— |
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1.10 |
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— |
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— |
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(1) For 2006, 2004 and 2003, the coverage deficiencies on both ratios approximated $9.1 million, $23.3 million and $65.7 million, respectively. All ratios have been reduced due to the disposition of properties which resulted in the inclusion of those properties in discontinued operations for all periods presented. For all years presented, the ratios have been further reduced due to non-cash depreciation expense 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 years presented.