EX-12.1 5 ex-1212014.htm EXHIBIT 12.1
Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

|  | Year Ended December 31, 2014 |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1) |  | Year Ended December 31, 2011 (1) |  | Year Ended December 31, 2010 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |  |  | $ | 140,215 |  |  | $ | 81,071 |
(Plus): |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received |  | 71,781 |  |  | 74,575 |  |  | 11,170 |  |  | 618 |  |  | 4,856 |
Amortization of capitalized interest (2) |  | 22,489 |  |  | 20,157 |  |  | 17,929 |  |  | 16,277 |  |  | 15,149 |
Earnings before fixed charges |  | 762,786 |  |  | 152,559 |  |  | 279,530 |  |  | 157,110 |  |  | 101,076 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor |  | 7,504 |  |  | 7,112 |  |  | 6,873 |  |  | 6,933 |  |  | 11,785 |
Interest expense |  | 180,618 |  |  | 172,402 |  |  | 136,920 |  |  | 167,814 |  |  | 169,997 |
Interest capitalized |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |  |  | 33,393 |
Preferred dividend |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed charges (3) |  | 258,083 |  |  | 246,352 |  |  | 193,349 |  |  | 208,610 |  |  | 215,175 |
(Less): |  |  |  |  |  |  |  |  |  |
Interest capitalized |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |  |  | 33,393 |
Preferred dividend |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges |  | 14,132 |  |  | — |  |  | — |  |  | — |  |  | — |
Earnings (4) |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |  |  | $ | 331,857 |  |  | $ | 282,858 |
Ratio (4 divided by 3) |  | 3.63 |  |  | 1.35 |  |  | 2.19 |  |  | 1.59 |  |  | 1.31 |

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31, 2014 |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1) |  | Year Ended December 31, 2011 (1) |  | Year Ended December 31, 2010 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |  |  | $ | 140,215 |  |  | $ | 81,071 |
(Plus): |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received |  | 71,781 |  |  | 74,575 |  |  | 11,170 |  |  | 618 |  |  | 4,856 |
Amortization of capitalized interest (2) |  | 22,489 |  |  | 20,157 |  |  | 17,929 |  |  | 16,277 |  |  | 15,149 |
Earnings before fixed charges |  | 762,786 |  |  | 152,559 |  |  | 279,530 |  |  | 157,110 |  |  | 101,076 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor |  | 7,504 |  |  | 7,112 |  |  | 6,873 |  |  | 6,933 |  |  | 11,785 |
Interest expense |  | 180,618 |  |  | 172,402 |  |  | 136,920 |  |  | 167,814 |  |  | 169,997 |
Interest capitalized |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |  |  | 33,393 |
Total fixed charges (3) |  | 258,083 |  |  | 246,352 |  |  | 193,349 |  |  | 208,610 |  |  | 215,175 |
(Less): |  |  |  |  |  |  |  |  |  |
Interest capitalized |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |  |  | 33,393 |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges |  | 14,132 |  |  | — |  |  | — |  |  | — |  |  | — |
Earnings (4) |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |  |  | $ | 331,857 |  |  | $ | 282,858 |
Ratio (4 divided by 3) |  | 3.63 |  |  | 1.35 |  |  | 2.19 |  |  | 1.59 |  |  | 1.31 |

(1) | The results of operations for 2010 through 2013 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).