EX-12.1 4 ex-1212016.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, 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 |  | $ | 1,034,013 |  |  | $ | 743,216 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |
(Plus): |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received |  | 60,103 |  |  | 84,764 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |
Amortization of capitalized interest (2) |  | 27,779 |  |  | 25,150 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |
Earnings before fixed charges |  | 1,121,895 |  |  | 853,130 |  |  | 762,786 |  |  | 152,559 |  |  | 279,530 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor |  | 8,483 |  |  | 7,790 |  |  | 7,504 |  |  | 7,112 |  |  | 6,873 |
Interest expense |  | 187,510 |  |  | 175,615 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |
Interest capitalized |  | 78,872 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Preferred dividend |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed charges (3) |  | 274,865 |  |  | 263,239 |  |  | 258,083 |  |  | 246,352 |  |  | 193,349 |
(Less): |  |  |  |  |  |  |  |  |  |
Interest capitalized |  | 78,872 |  |  | 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) |  | $ | 1,317,888 |  |  | $ | 1,036,535 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |
Ratio (4 divided by 3) |  | 4.79 |  |  | 3.94 |  |  | 3.63 |  |  | 1.35 |  |  | 2.19 |

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

|  | Year Ended December 31, 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 |  | $ | 1,034,013 |  |  | $ | 743,216 |  |  | $ | 668,516 |  |  | $ | 57,827 |  |  | $ | 250,431 |
(Plus): |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received |  | 60,103 |  |  | 84,764 |  |  | 71,781 |  |  | 74,575 |  |  | 11,170 |
Amortization of capitalized interest (2) |  | 27,779 |  |  | 25,150 |  |  | 22,489 |  |  | 20,157 |  |  | 17,929 |
Earnings before fixed charges |  | 1,121,895 |  |  | 853,130 |  |  | 762,786 |  |  | 152,559 |  |  | 279,530 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor |  | 8,483 |  |  | 7,790 |  |  | 7,504 |  |  | 7,112 |  |  | 6,873 |
Interest expense |  | 187,510 |  |  | 175,615 |  |  | 180,618 |  |  | 172,402 |  |  | 136,920 |
Interest capitalized |  | 78,872 |  |  | 79,834 |  |  | 69,961 |  |  | 66,838 |  |  | 49,556 |
Total fixed charges (3) |  | 274,865 |  |  | 263,239 |  |  | 258,083 |  |  | 246,352 |  |  | 193,349 |
(Less): |  |  |  |  |  |  |  |  |  |
Interest capitalized |  | 78,872 |  |  | 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) |  | $ | 1,317,888 |  |  | $ | 1,036,535 |  |  | $ | 936,776 |  |  | $ | 332,073 |  |  | $ | 423,323 |
Ratio (4 divided by 3) |  | 4.79 |  |  | 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).