EXHIBIT 12.1
Published on November 3, 2017
Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
Nine Months Ended September 30, 2017 |
Year Ended December 31, 2016 |
Year Ended December 31, 2015 |
Year Ended December 31, 2014 (1) |
Year Ended December 31, 2013 (1) |
|||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle |
$ |
639,276 |
$ |
1,034,013 |
$ |
743,216 |
$ |
668,516 |
$ |
57,827 |
|||||||||
(Plus): |
|||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received |
27,649 |
60,103 |
84,764 |
71,781 |
74,575 |
||||||||||||||
Amortization of capitalized interest (2) |
22,118 |
27,779 |
25,150 |
22,489 |
20,157 |
||||||||||||||
Earnings before fixed charges |
$ |
689,043 |
$ |
1,121,895 |
$ |
853,130 |
$ |
762,786 |
$ |
152,559 |
|||||||||
(Plus) Fixed charges: |
|||||||||||||||||||
Portion of rents representative of the interest factor |
$ |
6,305 |
$ |
8,483 |
$ |
7,790 |
$ |
7,504 |
$ |
7,112 |
|||||||||
Interest expense |
147,138 |
187,510 |
175,615 |
180,618 |
172,402 |
||||||||||||||
Interest capitalized |
51,323 |
78,872 |
79,834 |
69,961 |
66,838 |
||||||||||||||
Preferred dividend |
— |
— |
— |
— |
— |
||||||||||||||
Total fixed charges (3) |
$ |
204,766 |
$ |
274,865 |
$ |
263,239 |
$ |
258,083 |
$ |
246,352 |
|||||||||
(Less): |
|||||||||||||||||||
Interest capitalized |
51,323 |
78,872 |
79,834 |
69,961 |
66,838 |
||||||||||||||
Preferred dividend |
— |
— |
— |
— |
— |
||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges |
— |
— |
— |
14,132 |
— |
||||||||||||||
Earnings (4) |
$ |
842,486 |
$ |
1,317,888 |
$ |
1,036,535 |
$ |
936,776 |
$ |
332,073 |
|||||||||
Ratio (4 divided by 3) |
4.11 |
4.79 |
3.94 |
3.63 |
1.35 |
||||||||||||||
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
Nine Months Ended September 30, 2017 |
Year Ended December 31, 2016 |
Year Ended December 31, 2015 |
Year Ended December 31, 2014 (1) |
Year Ended December 31, 2013 (1) |
|||||||||||||||
Income from continuing operations before cumulative effect of change in accounting principle |
$ |
639,276 |
$ |
1,034,013 |
$ |
743,216 |
$ |
668,516 |
$ |
57,827 |
|||||||||
(Plus): |
|||||||||||||||||||
Equity in income of unconsolidated entities, net of distributions received |
27,649 |
60,103 |
84,764 |
71,781 |
74,575 |
||||||||||||||
Amortization of capitalized interest (2) |
22,118 |
27,779 |
25,150 |
22,489 |
20,157 |
||||||||||||||
Earnings before fixed charges |
$ |
689,043 |
$ |
1,121,895 |
$ |
853,130 |
$ |
762,786 |
$ |
152,559 |
|||||||||
(Plus) Fixed charges: |
|||||||||||||||||||
Portion of rents representative of the interest factor |
$ |
6,305 |
$ |
8,483 |
$ |
7,790 |
$ |
7,504 |
$ |
7,112 |
|||||||||
Interest expense |
147,138 |
187,510 |
175,615 |
180,618 |
172,402 |
||||||||||||||
Interest capitalized |
51,323 |
78,872 |
79,834 |
69,961 |
66,838 |
||||||||||||||
Total fixed charges (3) |
$ |
204,766 |
$ |
274,865 |
$ |
263,239 |
$ |
258,083 |
$ |
246,352 |
|||||||||
(Less): |
|||||||||||||||||||
Interest capitalized |
51,323 |
78,872 |
79,834 |
69,961 |
66,838 |
||||||||||||||
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges |
— |
— |
— |
14,132 |
— |
||||||||||||||
Earnings (4) |
$ |
842,486 |
$ |
1,317,888 |
$ |
1,036,535 |
$ |
936,776 |
$ |
332,073 |
|||||||||
Ratio (4 divided by 3) |
4.11 |
4.79 |
3.94 |
3.63 |
1.35 |
||||||||||||||
(1) |
The results of operations for 2013 and 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). |