Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
 
Year Ended
December 31,  2013 (1)
 
Year Ended
December 31,  2012 (1)
Income from continuing operations before cumulative effect of change in accounting principle
 
$
1,034,013

 
$
743,216

 
$
668,516

 
$
57,827

 
$
250,431

 
 
 
 
 
 
 
 
 
 
 
(Plus):
 
 
 
 
 
 
 
 
 
 
Equity in income of unconsolidated entities, net of distributions received
 
60,103

 
84,764

 
71,781

 
74,575

 
11,170

Amortization of capitalized interest (2) 
 
27,779

 
25,150

 
22,489

 
20,157

 
17,929

 
 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
 
1,121,895

 
853,130

 
762,786

 
152,559

 
279,530

 
 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 
 
 
 
 
 
 
 
 
 
Portion of rents representative of the interest factor
 
8,483

 
7,790

 
7,504

 
7,112

 
6,873

Interest expense
 
187,510

 
175,615

 
180,618

 
172,402

 
136,920

Interest capitalized
 
78,872

 
79,834

 
69,961

 
66,838

 
49,556

Preferred dividend
 

 

 

 

 

 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
 
274,865

 
263,239

 
258,083

 
246,352

 
193,349

 
 
 
 
 
 
 
 
 
 
 
(Less):
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
78,872

 
79,834

 
69,961

 
66,838

 
49,556

Preferred dividend
 

 

 

 

 

Noncontrolling interest in income of a subsidiary that has not incurred fixed charges
 

 

 
14,132

 

 

 
 
 
 
 
 
 
 
 
 
 
Earnings (4) 
 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
$
332,073

 
$
423,323

 
 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
 
4.79

 
3.94

 
3.63

 
1.35

 
2.19

 
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
 
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
 
Year Ended
December 31,  2013 (1)
 
Year Ended
December 31,  2012 (1)
Income from continuing operations before cumulative effect of change in accounting principle
 
$
1,034,013

 
$
743,216

 
$
668,516

 
$
57,827

 
$
250,431

 
 
 
 
 
 
 
 
 
 
 
(Plus):
 
 
 
 
 
 
 
 
 
 
Equity in income of unconsolidated entities, net of distributions received
 
60,103

 
84,764

 
71,781

 
74,575

 
11,170

Amortization of capitalized interest (2) 
 
27,779

 
25,150

 
22,489

 
20,157

 
17,929

 
 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
 
1,121,895

 
853,130

 
762,786

 
152,559

 
279,530

 
 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 
 
 
 
 
 
 
 
 
 
Portion of rents representative of the interest factor
 
8,483

 
7,790

 
7,504

 
7,112

 
6,873

Interest expense
 
187,510

 
175,615

 
180,618

 
172,402

 
136,920

Interest capitalized
 
78,872

 
79,834

 
69,961

 
66,838

 
49,556

 
 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
 
274,865

 
263,239

 
258,083

 
246,352

 
193,349

 
 
 
 
 
 
 
 
 
 
 
(Less):
 
 
 
 
 
 
 
 
 
 
Interest capitalized
 
78,872

 
79,834

 
69,961

 
66,838

 
49,556

Noncontrolling interest in income of a subsidiary that has not incurred fixed charges
 

 

 
14,132

 

 

 
 
 
 
 
 
 
 
 
 
 
Earnings (4) 
 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
$
332,073

 
$
423,323

 
 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
 
4.79

 
3.94

 
3.63

 
1.35

 
2.19

 
(1)
The results of operations for 2012 through 2014 have been adjusted to remove the Company's earnings classified as discontinued operations.
(2)
Represents an estimate of capitalized interest costs based on the Company’s established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed).