EX-12.1 2 q2201510-qex121.htm EXHIBIT 12.1
Exhibit 12.1
AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

| Six Months Ended June 30, 2015 |  | Year Ended December 31, 2014 (1) |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1) |  | Year Ended December 31, 2011 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 380,306 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |  |  | $ | 140,215 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 22,791 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |  |  | 618 |
Amortization of capitalized interest (2) | 11,892 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |  |  | 16,277 |
Earnings before fixed charges | $ | 414,989 |  |  | $ | 762,786 |  |  | $ | 152,559 |  |  | $ | 279,530 |  |  | $ | 157,110 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,520 |  |  | $ | 7,504 |  |  | $ | 7,112 |  |  | $ | 6,873 |  |  | $ | 6,933 |
Interest expense | 90,164 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |  |  | 167,814 |
Interest capitalized | 38,830 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed charges (3) | $ | 132,514 |  |  | $ | 258,083 |  |  | $ | 246,352 |  |  | $ | 193,349 |  |  | $ | 208,610 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 38,830 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | 14,132 |  |  | — |  |  | — |  |  | — |
Earnings (4) | $ | 508,673 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |  |  | $ | 331,857 |
Ratio (4 divided by 3) | 3.84 |  |  | 3.63 |  |  | 1.35 |  |  | 2.19 |  |  | 1.59 |

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

| Six Months Ended June 30, 2015 |  | Year Ended December 31, 2014 (1) |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1) |  | Year Ended December 31, 2011 (1)
Income (loss) from continuing operations before cumulative effect of change in accounting principle | $ | 380,306 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |  |  | $ | 140,215 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 22,791 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |  |  | 618 |
Amortization of capitalized interest (2) | 11,892 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |  |  | 16,277 |
Earnings before fixed charges | $ | 414,989 |  |  | $ | 762,786 |  |  | $ | 152,559 |  |  | $ | 279,530 |  |  | $ | 157,110 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,520 |  |  | $ | 7,504 |  |  | $ | 7,112 |  |  | $ | 6,873 |  |  | $ | 6,933 |
Interest expense | 90,164 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |  |  | 167,814 |
Interest capitalized | 38,830 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |
Total fixed charges (3) | $ | 132,514 |  |  | $ | 258,083 |  |  | $ | 246,352 |  |  | $ | 193,349 |  |  | $ | 208,610 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 38,830 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |  |  | 33,863 |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | 14,132 |  |  | — |  |  | — |  |  | — |
Earnings (4) | $ | 508,673 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |  |  | $ | 331,857 |
Ratio (4 divided by 3) | 3.84 |  |  | 3.63 |  |  | 1.35 |  |  | 2.19 |  |  | 1.59 |

(1) | The results of operations for 2011 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).