EX-12.1 2 ex121-06302015.htm EXHIBIT 12.1
EXHIBIT 12.1
UDR, Inc.
Computation of Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividends
(Dollars in thousands)

| Three Months Ended June 30, |  | Six Months Ended June 30, |
| 2015 |  | 2014 |  | 2015 |  | 2014 |
Earnings: |  |  |  |  |  |  |  |
Income/(loss) from continuing operations | $ | 10,842 |  |  | $ | 4,359 |  |  | $ | 87,259 |  |  | $ | (836 | ) |
Add (from continuing operations): |  |  |  |  |  |  |  |
Interest on indebtedness (a) | 29,673 |  |  | 31,691 |  |  | 58,473 |  |  | 64,575 |  |
Portion of rents representative of the interest factor | 485 |  |  | 569 |  |  | 940 |  |  | 1,134 |  |
Amortization of capitalized interest | 934 |  |  | 928 |  |  | 1,865 |  |  | 1,856 |  |
Total earnings | $ | 41,934 |  |  | $ | 37,547 |  |  | $ | 148,537 |  |  | $ | 66,729 |  |
Fixed charges and preferred stock dividends (from continuing operations): |  |  |  |  |  |  |  |
Interest on indebtedness (a) | $ | 29,673 |  |  | $ | 31,691 |  |  | $ | 58,473 |  |  | $ | 64,575 |  |
Interest capitalized | 3,775 |  |  | 4,915 |  |  | 8,615 |  |  | 10,223 |  |
Portion of rents representative of the interest factor | 485 |  |  | 569 |  |  | 940 |  |  | 1,134 |  |
Fixed charges | $ | 33,933 |  |  | $ | 37,175 |  |  | $ | 68,028 |  |  | $ | 75,932 |  |
Add: |  |  |  |  |  |  |  |
Preferred stock dividends | 931 |  |  | 931 |  |  | 1,862 |  |  | 1,862 |  |
Combined fixed charges and preferred stock dividends | $ | 34,864 |  |  | $ | 38,106 |  |  | $ | 69,890 |  |  | $ | 77,794 |  |
Ratio of earnings to fixed charges | 1.24 |  |  | 1.01 |  |  | 2.18 |  |  | — |  | (b)
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.20 |  |  | — |  | (c) | 2.13 |  |  | — |  | (c)

(a) | Includes interest expense of consolidated subsidiaries, amortization of deferred loan costs, realized losses related to hedging activities and amortization of premiums and discounts related to indebtedness.

(b) | The ratio was less than 1:1 for the six months ended June 30, 2014 as earnings were inadequate to cover fixed charges by deficiencies of approximately $9.2 million.

(c) | The ratio was less than 1:1 for the three and six months ended June 30, 2014 as earnings were inadequate to cover combined fixed charges and preferred stock dividends by deficiencies of approximately $559,000 and $11.1 million, respectively.