EX-12.1 2 q2201810-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, 2018 |  | Year Ended December 31, 2017 |  | Year Ended December 31, 2016 |  | Year Ended December 31, 2015 |  | Year Ended December 31, 2014 (1)
Income from continuing operations before cumulative effect of change in accounting principle | $ | 396,191 |  |  | $ | 876,801 |  |  | $ | 1,034,013 |  |  | $ | 743,216 |  |  | $ | 668,516 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 3,286 |  |  | 29,226 |  |  | 60,103 |  |  | 84,764 |  |  | 71,781 |
Amortization of capitalized interest (2) | 15,425 |  |  | 29,927 |  |  | 27,779 |  |  | 25,150 |  |  | 22,489 |
Earnings before fixed charges | $ | 414,902 |  |  | $ | 935,954 |  |  | $ | 1,121,895 |  |  | $ | 853,130 |  |  | $ | 762,786 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,880 |  |  | $ | 8,338 |  |  | $ | 8,483 |  |  | $ | 7,790 |  |  | $ | 7,504 |
Interest expense | 111,698 |  |  | 199,661 |  |  | 187,510 |  |  | 175,615 |  |  | 180,618 |
Interest capitalized | 27,731 |  |  | 64,420 |  |  | 78,872 |  |  | 79,834 |  |  | 69,961 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total fixed charges (3) | $ | 143,309 |  |  | $ | 272,419 |  |  | $ | 274,865 |  |  | $ | 263,239 |  |  | $ | 258,083 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 27,731 |  |  | 64,420 |  |  | 78,872 |  |  | 79,834 |  |  | 69,961 |
Preferred dividend | — |  |  | — |  |  | — |  |  | — |  |  | — |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | — |  |  | — |  |  | — |  |  | 14,132 |
Earnings (4) | $ | 530,480 |  |  | $ | 1,143,953 |  |  | $ | 1,317,888 |  |  | $ | 1,036,535 |  |  | $ | 936,776 |
Ratio (4 divided by 3) | 3.70 |  |  | 4.20 |  |  | 4.79 |  |  | 3.94 |  |  | 3.63 |

AVALONBAY COMMUNITIES, INC.
RATIOS OF EARNINGS TO FIXED CHARGES

| Six Months Ended June 30, 2018 |  | Year Ended December 31, 2017 |  | Year Ended December 31, 2016 |  | Year Ended December 31, 2015 |  | Year Ended December 31, 2014 (1)
Income from continuing operations before cumulative effect of change in accounting principle | $ | 396,191 |  |  | $ | 876,801 |  |  | $ | 1,034,013 |  |  | $ | 743,216 |  |  | $ | 668,516 |
(Plus): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Equity in income of unconsolidated entities, net of distributions received | 3,286 |  |  | 29,226 |  |  | 60,103 |  |  | 84,764 |  |  | 71,781 |
Amortization of capitalized interest (2) | 15,425 |  |  | 29,927 |  |  | 27,779 |  |  | 25,150 |  |  | 22,489 |
Earnings before fixed charges | $ | 414,902 |  |  | $ | 935,954 |  |  | $ | 1,121,895 |  |  | $ | 853,130 |  |  | $ | 762,786 |
(Plus) Fixed charges: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Portion of rents representative of the interest factor | $ | 3,880 |  |  | $ | 8,338 |  |  | $ | 8,483 |  |  | $ | 7,790 |  |  | $ | 7,504 |
Interest expense | 111,698 |  |  | 199,661 |  |  | 187,510 |  |  | 175,615 |  |  | 180,618 |
Interest capitalized | 27,731 |  |  | 64,420 |  |  | 78,872 |  |  | 79,834 |  |  | 69,961 |
Total fixed charges (3) | $ | 143,309 |  |  | $ | 272,419 |  |  | $ | 274,865 |  |  | $ | 263,239 |  |  | $ | 258,083 |
(Less): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest capitalized | 27,731 |  |  | 64,420 |  |  | 78,872 |  |  | 79,834 |  |  | 69,961 |
Noncontrolling interest in income of a subsidiary that has not incurred fixed charges | — |  |  | — |  |  | — |  |  | — |  |  | 14,132 |
Earnings (4) | $ | 530,480 |  |  | $ | 1,143,953 |  |  | $ | 1,317,888 |  |  | $ | 1,036,535 |  |  | $ | 936,776 |
Ratio (4 divided by 3) | 3.70 |  |  | 4.20 |  |  | 4.79 |  |  | 3.94 |  |  | 3.63 |

(1) | The results of operations for 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).