EX-12.1 6 exhibit121-12x31x2015.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)

| Year Ended December 31, |
| 2015 |  | 2014 |  | 2013 |  | 2012 |  | 2011 |
Earnings: |  |  |  |  |  |  |  |  |  |
Income/(loss) from continuing operations | $ | 105,482 |  |  | $ | 16,260 |  |  | $ | 2,340 |  |  | $ | (46,305 | ) |  | (126,869 | ) |
Add (from continuing operations): |  |  |  |  |  |  |  |  |  |
Interest on indebtedness (a) | 121,875 |  |  | 130,262 |  |  | 125,905 |  |  | 139,069 |  |  | 151,764 |  |
Portion of rents representative of the interest factor | 1,922 |  |  | 2,224 |  |  | 2,163 |  |  | 2,073 |  |  | 2,039 |  |
Amortization of capitalized interest | 4,112 |  |  | 3,711 |  |  | 3,374 |  |  | 2,883 |  |  | 2,187 |  |
Total earnings | $ | 233,391 |  |  | $ | 152,457 |  |  | $ | 133,782 |  |  | $ | 97,720 |  |  | $ | 29,121 |  |
Fixed charges and preferred stock dividends (from continuing operations): |  |  |  |  |  |  |  |  |  |
Interest on indebtedness (a) | $ | 121,875 |  |  | $ | 130,262 |  |  | $ | 125,905 |  |  | $ | 139,069 |  |  | $ | 151,764 |  |
Interest capitalized | 16,105 |  |  | 20,249 |  |  | 29,384 |  |  | 26,368 |  |  | 12,979 |  |
Portion of rents representative of the interest factor | 1,922 |  |  | 2,224 |  |  | 2,163 |  |  | 2,073 |  |  | 2,039 |  |
Fixed charges | $ | 139,902 |  |  | $ | 152,735 |  |  | $ | 157,452 |  |  | $ | 167,510 |  |  | $ | 166,782 |  |
Add: |  |  |  |  |  |  |  |  |  |
Preferred stock dividends | $ | 3,722 |  |  | $ | 3,724 |  |  | $ | 3,724 |  |  | $ | 6,010 |  |  | $ | 9,311 |  |
Premium/(discount) on preferred stock redemption or repurchase, net | — |  |  | — |  |  | — |  |  | 2,791 |  |  | 175 |  |
Combined fixed charges and preferred stock dividends | $ | 143,624 |  |  | $ | 156,459 |  |  | $ | 161,176 |  |  | $ | 176,311 |  |  | $ | 176,268 |  |
Ratio of earnings to fixed charges | 1.67 |  |  | — |  | (b) | — |  | (b) | — |  | (b) | — |  | (b)
Ratio of earnings to combined fixed charges and preferred stock dividends | 1.63 |  |  | — |  | (c) | — |  | (c) | — |  | (c) | — |  | (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 years ended December 31, 2014, 2013, 2012, and 2011 as earnings were inadequate to cover fixed charges by deficiencies of approximately $0.3 million, $23.7 million, $69.8 million, and $137.7 million, respectively.
(c) The ratio was less than 1:1 for the years ended December 31, 2014, 2013, 2012, and 2011 as earnings were inadequate to cover combined fixed charges and preferred stock dividends by deficiencies of approximately $4.0 million, $27.4 million, $78.6 million, and $147.1 million, respectively.