STATEMENTS RE: COMPUTATION OF RATIOS
Published on February 27, 2012
Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
| Year Ended December 31, 2011 |
Year Ended December 31, 2010 (1) |
Year Ended December 31, 2009 (1) |
Year Ended December 31, 2008 (1) |
Year Ended December 31, 2007 (1) |
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| Income from continuing operations before cumulative effect of change in accounting principle |
$ | 165,938 | $ | 103,773 | $ | 82,698 | $ | 103,348 | $ | 220,574 | ||||||||||
| (Plus): |
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| Equity in income of unconsolidated entities, net of distributions received |
618 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
| Amortization of capitalized interest (2) |
16,277 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
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| Earnings before fixed charges |
$ | 182,833 | $ | 123,778 | $ | 102,208 | $ | 122,504 | $ | 240,047 | ||||||||||
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| (Plus) Fixed charges: |
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| Portion of rents representative of the interest factor |
$ | 6,933 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
| Interest expense |
168,179 | 170,349 | 145,462 | 111,238 | 92,168 | |||||||||||||||
| Interest capitalized |
33,863 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
| Preferred dividend |
| | | 10,454 | 8,700 | |||||||||||||||
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| Total fixed charges (3) |
$ | 208,975 | $ | 215,527 | $ | 199,929 | $ | 201,600 | $ | 177,151 | ||||||||||
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| (Less): |
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| Interest capitalized |
33,863 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
| Preferred dividend |
| | | 10,454 | 8,700 | |||||||||||||||
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| Earnings (4) |
$ | 357,945 | $ | 305,912 | $ | 253,911 | $ | 239,029 | $ | 335,380 | ||||||||||
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| Ratio (4 divided by 3) |
1.71 | 1.42 | 1.27 | 1.19 | 1.89 | |||||||||||||||
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AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES
| Year Ended December 31, 2011 |
Year Ended December 31, 2010 (1) |
Year Ended December 31, 2009 (1) |
Year Ended December 31, 2008 (1) |
Year Ended December 31, 2007 (1) |
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| Income from continuing operations before cumulative effect of change in accounting principle |
$ | 165,938 | $ | 103,773 | $ | 82,698 | $ | 103,348 | $ | 220,574 | ||||||||||
| (Plus): |
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| Equity in income of unconsolidated entities, net of distributions received |
618 | 4,856 | 5,475 | 6,728 | 9,532 | |||||||||||||||
| Amortization of capitalized interest (2) |
16,277 | 15,149 | 14,035 | 12,428 | 9,941 | |||||||||||||||
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| Earnings before fixed charges |
$ | 182,833 | $ | 123,778 | $ | 102,208 | $ | 122,504 | $ | 240,047 | ||||||||||
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| (Plus) Fixed charges: |
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| Portion of rents representative of the interest factor |
$ | 6,933 | $ | 11,785 | $ | 6,241 | $ | 5,287 | $ | 3,165 | ||||||||||
| Interest expense |
168,179 | 170,349 | 145,462 | 111,238 | 92,168 | |||||||||||||||
| Interest capitalized |
33,863 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
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| Total fixed charges (3) |
$ | 208,975 | $ | 215,527 | $ | 199,929 | $ | 191,146 | $ | 168,451 | ||||||||||
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| (Less): |
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| Interest capitalized |
33,863 | 33,393 | 48,226 | 74,621 | 73,118 | |||||||||||||||
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| Earnings (4) |
$ | 357,945 | $ | 305,912 | $ | 253,911 | $ | 239,029 | $ | 335,380 | ||||||||||
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| Ratio (4 divided by 3) |
1.71 | 1.42 | 1.27 | 1.25 | 1.99 | |||||||||||||||
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| (1) | The results of operations for 2007 through 2010 have been adjusted to reflect discontinued operations for properties sold or held for sale as of December 31, 2011. |
| (2) | Represents an estimate of capitalized interest costs based on the Companys established depreciation policy and an analysis of interest costs capitalized since 1998 (the year in which AvalonBay was formed). |