Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 4, 2018



Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
 
Three Months Ended March 31, 2018
 
Year Ended
December 31,  2017
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
Income from continuing operations before cumulative effect of change in accounting principle
$
141,590

 
$
876,801

 
$
1,034,013

 
$
743,216

 
$
668,516

 
 
 
 
 
 
 
 
 
 
(Plus):
 

 
 

 
 

 
 

 
 

Equity in income of unconsolidated entities, net of distributions received
2,085

 
29,226

 
60,103

 
84,764

 
71,781

Amortization of capitalized interest (2) 
7,591

 
29,927

 
27,779

 
25,150

 
22,489

 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
$
151,266

 
$
935,954

 
$
1,121,895

 
$
853,130

 
$
762,786

 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 

 
 

 
 

 
 

 
 

Portion of rents representative of the interest factor
$
2,145

 
$
8,338

 
$
8,483

 
$
7,790

 
$
7,504

Interest expense
55,113

 
199,661

 
187,510

 
175,615

 
180,618

Interest capitalized
13,164

 
64,420

 
78,872

 
79,834

 
69,961

Preferred dividend

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
$
70,422

 
$
272,419

 
$
274,865

 
$
263,239

 
$
258,083

 
 
 
 
 
 
 
 
 
 
(Less):
 

 
 

 
 

 
 

 
 

Interest capitalized
13,164

 
64,420

 
78,872

 
79,834

 
69,961

Preferred dividend

 

 

 

 

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

 

 

 

 
14,132

 
 
 
 
 
 
 
 
 
 
Earnings (4) 
$
208,524

 
$
1,143,953

 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
2.96

 
4.20

 
4.79

 
3.94

 
3.63

 
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
 
Three Months Ended March 31, 2018
 
Year Ended
December 31,  2017
 
Year Ended
December 31,  2016
 
Year Ended
December 31,  2015
 
Year Ended
December 31,  2014 (1)
Income from continuing operations before cumulative effect of change in accounting principle
$
141,590

 
$
876,801

 
$
1,034,013

 
$
743,216

 
$
668,516

 
 
 
 
 
 
 
 
 
 
(Plus):
 

 
 

 
 

 
 

 
 

Equity in income of unconsolidated entities, net of distributions received
2,085

 
29,226

 
60,103

 
84,764

 
71,781

Amortization of capitalized interest (2) 
7,591

 
29,927

 
27,779

 
25,150

 
22,489

 
 
 
 
 
 
 
 
 
 
Earnings before fixed charges
$
151,266

 
$
935,954

 
$
1,121,895

 
$
853,130

 
$
762,786

 
 
 
 
 
 
 
 
 
 
(Plus) Fixed charges:
 

 
 

 
 

 
 

 
 

Portion of rents representative of the interest factor
$
2,145

 
$
8,338

 
$
8,483

 
$
7,790

 
$
7,504

Interest expense
55,113

 
199,661

 
187,510

 
175,615

 
180,618

Interest capitalized
13,164

 
64,420

 
78,872

 
79,834

 
69,961

 
 
 
 
 
 
 
 
 
 
Total fixed charges (3) 
$
70,422

 
$
272,419

 
$
274,865

 
$
263,239

 
$
258,083

 
 
 
 
 
 
 
 
 
 
(Less):
 

 
 

 
 

 
 

 
 

Interest capitalized
13,164

 
64,420

 
78,872

 
79,834

 
69,961

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

 

 

 

 
14,132

 
 
 
 
 
 
 
 
 
 
Earnings (4) 
$
208,524

 
$
1,143,953

 
$
1,317,888

 
$
1,036,535

 
$
936,776

 
 
 
 
 
 
 
 
 
 
Ratio (4 divided by 3)
2.96

 
4.20

 
4.79

 
3.94

 
3.63


(1)
The results of operations for 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).