EX-12.1 2 q2201610-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, 2016 |  | Year Ended December 31, 2015 |  | Year Ended December 31, 2014 (1) |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1)
Income from continuing operations before cumulative effect of change in accounting principle | $ | 435,270 |  |  | $ | 743,594 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 11,603 |  |  | 84,764 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |
Amortization of capitalized interest (2) | 13,252 |  |  | 25,150 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |
Earnings before fixed charges | $ | 460,125 |  |  | $ | 853,508 |  |  | $ | 762,786 |  |  | $ | 152,559 |  |  | $ | 279,530 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,805 |  |  | $ | 7,790 |  |  | $ | 7,504 |  |  | $ | 7,112 |  |  | $ | 6,873 |
Interest expense | 89,991 |  |  | 175,615 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |
Interest capitalized | 40,633 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed charges (3) | $ | 134,429 |  |  | $ | 263,239 |  |  | $ | 258,083 |  |  | $ | 246,352 |  |  | $ | 193,349 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 40,633 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | — |  |  | 14,132 |  |  | — |  |  | — |
Earnings (4) | $ | 553,921 |  |  | $ | 1,036,913 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |
Ratio (4 divided by 3) | 4.12 |  |  | 3.94 |  |  | 3.63 |  |  | 1.35 |  |  | 2.19 |

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

| Six Months Ended June 30, 2016 |  | Year Ended December 31, 2015 |  | Year Ended December 31, 2014 (1) |  | Year Ended December 31, 2013 (1) |  | Year Ended December 31, 2012 (1)
Income from continuing operations before cumulative effect of change in accounting principle | $ | 435,270 |  |  | $ | 743,594 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 11,603 |  |  | 84,764 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |
Amortization of capitalized interest (2) | 13,252 |  |  | 25,150 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |
Earnings before fixed charges | $ | 460,125 |  |  | $ | 853,508 |  |  | $ | 762,786 |  |  | $ | 152,559 |  |  | $ | 279,530 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,805 |  |  | $ | 7,790 |  |  | $ | 7,504 |  |  | $ | 7,112 |  |  | $ | 6,873 |
Interest expense | 89,991 |  |  | 175,615 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |
Interest capitalized | 40,633 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Total fixed charges (3) | $ | 134,429 |  |  | $ | 263,239 |  |  | $ | 258,083 |  |  | $ | 246,352 |  |  | $ | 193,349 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 40,633 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | — |  |  | 14,132 |  |  | — |  |  | — |
Earnings (4) | $ | 553,921 |  |  | $ | 1,036,913 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |
Ratio (4 divided by 3) | 4.12 |  |  | 3.94 |  |  | 3.63 |  |  | 1.35 |  |  | 2.19 |

(1) | The results of operations for 2012 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).