EX-12.2 3 amh123117exhibit122.htm EXHIBIT 12.2
Exhibit 12.2
AMERICAN HOMES 4 RENT, L.P.
RATIOS OF EARNINGS TO FIXED CHARGES AND EARNINGS TO
COMBINED FIXED CHARGES AND PREFERRED DISTRIBUTIONS

(Amounts in thousands) |  | Year ended December 31,
|  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013 (1)
Earnings: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income (loss) from continuing operations |  | $ | 76,492 |  |  | $ | 10,446 |  |  | $ | (47,948 | ) |  | $ | (33,092 | ) |  | $ | (20,074 | )
Less: equity in earnings of joint ventures |  | (1,642 | ) |  | (860 | ) |  | — |  |  | — |  |  | — |
Add: fixed charges |  | 119,006 |  |  | 133,783 |  |  | 98,103 |  |  | 33,077 |  |  | 10,016 |
Less: capitalized interest |  | (5,656 | ) |  | (2,290 | ) |  | (8,690 | ) |  | (13,196 | ) |  | (9,646 | )
Less: gain on remeasurement of equity method investment |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,945 | )
Less: gain on conversion of Series E units |  | — |  |  | (11,463 | ) |  | — |  |  | — |  |  | — |
Less: remeasurement of Series E units |  | — |  |  | — |  |  | (2,100 | ) |  | 5,119 |  |  | 2,057 |
Less: remeasurement of participating preferred units |  | (2,841 | ) |  | 7,020 |  |  | 4,830 |  |  | 6,158 |  |  | 1,810 |
Total earnings |  | $ | 185,359 |  |  | $ | 136,636 |  |  | $ | 44,195 |  |  | $ | (1,934 | ) |  | $ | (26,782 | )
Combined fixed charges and preferred distributions: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense (including amortization of loan costs) |  | $ | 112,620 |  |  | $ | 130,847 |  |  | $ | 89,413 |  |  | $ | 19,881 |  |  | $ | 370 |
Capitalized interest |  | 5,656 |  |  | 2,290 |  |  | 8,690 |  |  | 13,196 |  |  | 9,646 |
Portion of rental expense which represents interest factor |  | 730 |  |  | 646 |  |  | — |  |  | — |  |  | — |
Fixed charges |  | $ | 119,006 |  |  | $ | 133,783 |  |  | $ | 98,103 |  |  | $ | 33,077 |  |  | $ | 10,016 |
Preferred distributions (2) |  | 60,718 |  |  | 43,264 |  |  | 41,067 |  |  | 37,528 |  |  | 16,223 |
Combined fixed charges and preferred distributions |  | $ | 179,724 |  |  | $ | 177,047 |  |  | $ | 139,170 |  |  | $ | 70,605 |  |  | $ | 26,239 |
Ratio of earnings to fixed charges |  | 1.56 |  |  | 1.02 |  |  | 0.45 |  |  | N/A |  |  | N/A |
Ratio of earnings to combined fixed charges and preferred distributions |  | 1.03 |  |  | 0.77 |  |  | 0.32 |  |  | N/A |  |  | N/A |
Surplus (deficiency) of earnings to fixed charges |  | $ | 66,353 |  |  | $ | 2,853 |  |  | $ | (53,908 | ) |  | $ | (35,011 | ) |  | $ | (36,798 | )
Surplus (deficiency) of earnings to combined fixed charges and preferred distributions |  | $ | 5,635 |  |  | $ | (40,411 | ) |  | $ | (94,975 | ) |  | $ | (72,539 | ) |  | $ | (53,021 | )

(1) | Excludes discontinued operations.

(2) | Includes distributions of $4.7 million on Series A participating preferred units, $4.1 million on Series B participating preferred units, $10.5 million on Series C participating preferred units, $17.5 million on Series D perpetual preferred units, $14.6 million on Series E perpetual preferred units, $6.2 million on Series F perpetual preferred units and $3.1 million on Series G perpetual preferred units for the year ended December 31, 2017. Includes distributions of $6.3 million on Series A participating preferred units, $5.5 million on Series B participating preferred units, $10.5 million on Series C participating preferred units, $10.6 million on Series D perpetual preferred units, $7.4 million on Series E perpetual preferred units and $3.0 million on Series C convertible units for the year ended December 31, 2016. Includes distributions of $6.3 million on Series A participating preferred units, $5.5 million on Series B participating preferred units, $10.5 million on Series C participating preferred units and $18.8 million on Series C convertible units for the year ended December 31, 2015. Includes distributions of $6.3 million on Series A participating preferred units, $5.7 million on Series B participating preferred units, $6.9 million on Series C participating preferred units and $18.6 million on Series C convertible units for the year ended December 31, 2014. Includes distributions of $1.2 million on Series A participating preferred units, $14.9 million on Series C convertible units and $0.2 million on 3.5% convertible perpetual preferred units for the year ended December 31, 2013.