EX-12.1 2 cpt12312014-ex121q414.htm EXHIBIT 12.1
EXHIBIT 12.1
CAMDEN PROPERTY TRUST
STATEMENT REGARDING COMPUTATION OF RATIOS
FOR THE FIVE YEARS ENDED DECEMBER 31

(in thousands, except for ratio amounts) |  | 2014 (1) |  | 2013 (2) |  | 2012 (3) |  | 2011 (4) |  | 2010 (5)
EARNINGS BEFORE FIXED CHARGES: |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  | $ | 303,217 |  |  | $ | 157,442 |  |  | $ | 162,634 |  |  | $ | 19,729 |  |  | $ | 3,754 |
Less: Equity in income (loss) of joint ventures |  | 7,023 |  |  | 24,865 |  |  | 20,175 |  |  | 5,679 |  |  | (839 | )
|  | 296,194 |  |  | 132,577 |  |  | 142,459 |  |  | 14,050 |  |  | 4,593 |
Add: Distributed income of joint ventures |  | 7,399 |  |  | 8,884 |  |  | 6,321 |  |  | 5,329 |  |  | 6,524 |
Less: Interest capitalized |  | 21,796 |  |  | 15,439 |  |  | 12,457 |  |  | 8,764 |  |  | 5,687 |
Less: Preferred distribution of subsidiaries |  | — |  |  | — |  |  | 776 |  |  | 7,000 |  |  | 7,000 |
Total earnings (loss) before fixed charges |  | 281,797 |  |  | 126,022 |  |  | 135,547 |  |  | 3,615 |  |  | (1,570 | )
FIXED CHARGES: |  |  |  |  |  |  |  |  |  |
Interest expense |  | 93,263 |  |  | 98,129 |  |  | 104,246 |  |  | 112,414 |  |  | 125,893 |
Interest capitalized |  | 21,796 |  |  | 15,439 |  |  | 12,457 |  |  | 8,764 |  |  | 5,687 |
Accretion of discount |  | 1,035 |  |  | 1,051 |  |  | 816 |  |  | 650 |  |  | 514 |
Loan amortization |  | 3,355 |  |  | 3,548 |  |  | 3,608 |  |  | 5,877 |  |  | 4,102 |
Interest portion of rental expense |  | 179 |  |  | 167 |  |  | 156 |  |  | 167 |  |  | 174 |
Preferred distribution of subsidiaries |  | — |  |  | — |  |  | 776 |  |  | 7,000 |  |  | 7,000 |
Total fixed charges |  | 119,628 |  |  | 118,334 |  |  | 122,059 |  |  | 134,872 |  |  | 143,370 |
Total earnings and fixed charges |  | $ | 401,425 |  |  | $ | 244,356 |  |  | $ | 257,606 |  |  | $ | 138,487 |  |  | $ | 141,800 |
RATIO OF EARNINGS TO FIXED CHARGES |  | 3.36 |  |  | 2.06 |  |  | 2.11 |  |  | 1.03 |  |  | 0.99 |

(1) | Earnings include a $159,289 impact related to a gain on sale of operating properties, including land, a $10,000 impact related to incentive compensation expense as a result of joint venture restructuring, and a $1,152 impact related to an impairment charge associated with land holdings. Excluding these impacts, the ratio would be 2.12.

(2) | Earnings include a $1,000 impact related to non-recurring fee income and a $698 impact related to gain on sale of land. Excluding these impacts, the ratio would be 2.05.

(3) | Earnings include a $57,418 impact related to a gain on acquisition of controlling interest in joint ventures. Excluding this impact, the ratio would be 1.64.

(4) | Earnings include a $29,791 impact related to a loss on discontinuation of a hedging relationship, a $1,136 impact related to gain on sale of joint venture interests, a $3,316 impact related to a net gain on the sale of an available-for-sale investment, and a $4,748 impact related to gains on the sale of properties, including land. Excluding these impacts, the ratio would be 1.18.

(5) | We would have needed to generate an additional $1,570 to achieve a ratio of 1.00 in 2010. Earnings include a $1,000 impact related to an impairment provision on a technology investment and a $236 impact related to a gain on the sale of land. These transactions did not have an impact on the ratio of 0.99.

(in thousands, except for ratio amounts) |  | 2014 |  | 2013 |  | 2012 |  | 2011 |  | 2010
INTEREST COVERAGE RATIO |  |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 858,589 |  |  | $ | 810,048 |  |  | $ | 714,725 |  |  | $ | 620,796 |  |  | $ | 576,093 |
Total expenses |  | (720,532 | ) |  | (678,169 | ) |  | (629,684 | ) |  | (582,839 | ) |  | (570,736 | )
Income from discontinued operations |  | — |  |  | 8,515 |  |  | 17,406 |  |  | 17,831 |  |  | 19,355 |
Add: Depreciation and amortization |  | 238,989 |  |  | 217,943 |  |  | 198,281 |  |  | 171,363 |  |  | 160,368 |
Add: Depreciation of discontinued operations |  | — |  |  | 5,255 |  |  | 15,199 |  |  | 16,679 |  |  | 19,294 |
Add: Interest expense |  | 93,263 |  |  | 98,129 |  |  | 104,246 |  |  | 112,414 |  |  | 125,893 |
Add: Interest expense of discontinued operations |  | — |  |  | — |  |  | 36 |  |  | — |  |  | — |
Total |  | $ | 470,309 |  |  | $ | 461,721 |  |  | $ | 420,209 |  |  | $ | 356,244 |  |  | $ | 330,267 |
Total interest expense |  | $ | 93,263 |  |  | $ | 98,129 |  |  | $ | 104,282 |  |  | $ | 112,414 |  |  | $ | 125,893 |
INTEREST COVERAGE RATIO |  | 5.0 |  |  | 4.7 |  |  | 4.0 |  |  | 3.2 |  |  | 2.6 |