EX-12.1 2 cpt12312017-ex121.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) |  | 2017 (1) |  | 2016 (2) |  | 2015 (3) |  | 2014 (4) |  | 2013 (5)
EARNINGS BEFORE FIXED CHARGES: |  |  |  |  |  |  |  |  |  |
Income from continuing operations before income taxes |  | $ | 202,084 |  |  | $ | 457,001 |  |  | $ | 240,384 |  |  | $ | 285,020 |  |  | $ | 140,195 |
Less: Equity in income of joint ventures |  | 6,822 |  |  | 7,125 |  |  | 6,168 |  |  | 7,023 |  |  | 24,865 |
|  | 195,262 |  |  | 449,876 |  |  | 234,216 |  |  | 277,997 |  |  | 115,330 |
Add: Distributed income of joint ventures |  | 6,851 |  |  | 7,057 |  |  | 6,387 |  |  | 7,399 |  |  | 8,884 |
Less: Interest capitalized |  | 15,174 |  |  | 18,184 |  |  | 19,271 |  |  | 22,185 |  |  | 15,698 |
Total earnings before fixed charges |  | 186,939 |  |  | 438,749 |  |  | 221,332 |  |  | 263,211 |  |  | 108,516 |
FIXED CHARGES: |  |  |  |  |  |  |  |  |  |
Interest expense |  | 86,750 |  |  | 93,145 |  |  | 97,312 |  |  | 94,906 |  |  | 99,784 |
Interest capitalized |  | 15,174 |  |  | 18,184 |  |  | 19,271 |  |  | 22,185 |  |  | 15,698 |
Accretion of discount |  | 1,005 |  |  | 1,032 |  |  | 1,080 |  |  | 1,035 |  |  | 1,051 |
Interest portion of rental expense |  | 242 |  |  | 244 |  |  | 202 |  |  | 179 |  |  | 167 |
Total fixed charges |  | 103,171 |  |  | 112,605 |  |  | 117,865 |  |  | 118,305 |  |  | 116,700 |
Total earnings and fixed charges |  | $ | 290,110 |  |  | $ | 551,354 |  |  | $ | 339,197 |  |  | $ | 381,516 |  |  | $ | 225,216 |
RATIO OF EARNINGS TO FIXED CHARGES |  | 2.81 |  |  | 4.90 |  |  | 2.88 |  |  | 3.22 |  |  | 1.93 |

(1) | Earnings include a $43,231 impact related to a gain on sale of one operating property, $4,987 in expenses due to Hurricanes Harvey and Irma, and a $323 impact related to a loss on early retirement of debt. Excluding this impact, the ratio would be $2.44.

(2) | Earnings include a $295,397 impact related to a gain on sale of operating properties, including land. Excluding this impact, the ratio would be 2.27.

(3) | Earnings include a $104,288 impact related to a gain on sale of operating properties, including land. Excluding this impact, the ratio would be 1.99.

(4) | 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 1.97.

(5) | 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 1.92.

(in thousands, except for ratio amounts) |  | 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013
INTEREST COVERAGE RATIO |  |  |  |  |  |  |  |  |  |
Total revenues |  | $ | 928,691 |  |  | $ | 891,024 |  |  | $ | 842,950 |  |  | $ | 804,874 |  |  | $ | 758,230 |
Total expenses |  | (776,337 | ) |  | (736,545 | ) |  | (713,022 | ) |  | (685,014 | ) |  | (643,598 | )
Income from discontinued operations |  | — |  |  | 7,605 |  |  | 19,750 |  |  | 18,197 |  |  | 25,762 |
Add: Depreciation and amortization |  | 263,974 |  |  | 250,146 |  |  | 240,944 |  |  | 222,055 |  |  | 201,428 |
Add: Depreciation of discontinued operations |  | — |  |  | 4,327 |  |  | 16,138 |  |  | 15,291 |  |  | 20,115 |
Add: Interest expense |  | 86,750 |  |  | 93,145 |  |  | 97,312 |  |  | 94,906 |  |  | 99,784 |
Total |  | $ | 503,078 |  |  | $ | 509,702 |  |  | $ | 504,072 |  |  | $ | 470,309 |  |  | $ | 461,721 |
Total interest expense |  | $ | 86,750 |  |  | $ | 93,145 |  |  | $ | 97,312 |  |  | $ | 94,906 |  |  | $ | 99,784 |
INTEREST COVERAGE RATIO |  | 5.8 |  |  | 5.5 |  |  | 5.2 |  |  | 5.0 |  |  | 4.6 |